Ministry of Industry and Trade statistics show last year’s Vietnamesegarment and textile exports to the US reached 8.6 billion USD, up 14.2%from the previous year, radio The Voice of Vietnam (VOV) reported onApril 7.
Especially, the US remains Vietnam’s largest exportmarket for such items as footwear, handbags and suitcases with a totalexport turnover of 3.46 billion USD, making up 33.6% of the sector’stotal revenue.
The US is a highly lucrative export market forVietnam businesses, said President of Sourcing at Magic, Chris Griffinwho is also in charge of foreign customers of the Magic-Las VegasSourcing 2014 organising board at a recent seminar discussing strategiesto penetrate and expand to the US market.
The US is the world’sbiggest consumption market for garment and textile exports, whichcurrently stand at over 100 billion USD per year. In 2013, the USeconomy encountered difficulties, leading to the fact that garment andtextile exports to the market experiencing only a modest increase of3.6% against 2012’s figure.
However, Chris Griffin said that,the US economy is recovering from the financial crisis in 2008. In theearly months of this year, the US GDP rose by 3-4% while the securitiesmarket and consumer trust in the economy have also markedly increased.
“All of these positive signs will offer a good opportunity for Vietnamese businesses to penetrate the US market” he said.
Griffincompared the US market to the European and Japanese markets which alsohave been stagnant and in a crisis mode, but the US economy has turnedthe corner and is solidly on the rebound and gaining momentum.
USmanufactures and retailers are actively searching for ways to reducetheir dependence on China and are searching worldwide for alternativesuppliers to replace China, which creates an excellent opportunity forVietnam to find a niche in the US market, added Chris Griffin.
Hearticulated that China now takes is the leading exporter of goods intothe US market. However, costs in China are increasing and this providesVietnam is a perfect alternative option for US business thanks to itspolitical stability, hardworking and responsible people.
Forexample, at the Magic-Las Vegas Sourcing fairs in the US, all majorAmerican importers were gathering at the Vietnamese pavilions expressingtheir viewpoints that Vietnam has a stable and competitive labour costscompared to other nations. In addition, Vietnamese exporters areinterested in conquering the US market.
Chris Griffin noted thatto expand exports to the US, local businesses should learn more aboutmarket differentiation according to age, style, price and quality andexport goods through different distribution channels-retail, wholesaleand agent.
Two potential distribution channels for Vietnamesebusinesses are wholesalers which own strong trademarks and major retailcentres.
Ministry of Industry and Trade representativessuggested Vietnamese businesses should pay special heed to legalformalities and technical barriers in the US market if they want toachieve greater penetration.
Like Europe, the US requirements forfootwear imports are becoming increasingly more difficult andcomplicated due to a series of regulations, strict requirements andsecurity investigations that must be met.
Additionally, eachstate in the US has its own regulations and laws, so importers shouldpay attention to not only federal laws but also the laws of each state.
Toenjoy sustainable exports to the US market, Griffin said thatbusinesses should take care to join and become active participatingmembers of US trade associations, to have the advantage of theirexpertise and technical support, and strictly comply with the demandinglegal requirements of doing business in the US.-VNA