Vietnam seeks ways to increase exports to ASEAN
HCM City (VNA) – Vietnamese businesses have not yet tapped
opportunities brought by the ASEAN Economic Community (AEC) to boost exports to
the ASEAN market, said experts at a seminar in Ho Chi Minh City on October 10.
With a market of 660 million people and a GDP of nearly 2.6 trillion USD, the AEC
is now the sixth largest economy globally and is projected to rank fourth in
2030. Therefore, it is expected to open up many new opportunities for
Vietnamese enterprises, especially in commodity exports.
However, since the AEC was established three years ago, Vietnamese companies
have not yet created any breakthroughs in exporting their goods to other ASEAN member
countries, said participants.
According to Pham Thanh Kien, Director of the HCM City Department of Industry
and Trade, there was no drastic increase in the city’s exports to the ASEAN market
since the debut of the AEC and even its export growth tends to gradually
decrease.
He
cited that HCM City’s 2016 exports to ASEAN members rose 13 percent against the
previous year but in 2017, the figure was only 4 percent year-on-year.
The
city’s exports are rising but imports are rising faster, at 8.15 billion USD
last year, which was 2.6 times higher than exports, he added.
[Video: Seafood exports to ASEAN expected to reach 1 billion USD]
Pham
Thiet Hoa, Director of the HCM City Investment, Trade and Promotion Centre,
said the reasons for the limited exports to ASEAN markets are lack of product
diversity, uncompetitive prices, limited distribution system, and lack of coordination
with trade facilitation authorities.
Firms need to better research the requirements for exporting to these markets,
learn the culture of their target markets and pay attention to business
decisions such as working with foreign business partners, especially those in
Islamic countries, he added.
Sharing the view with Hoa, Kien said besides improving their production
capabilities, firms need to do extensive market research, look for new trade
opportunities and network with trustworthy local distributors.
Nguyen Thi Tue Anh, Deputy Director of the Central Institute for Economic
Management, said Vietnamese firms now have greater opportunities than ever to
export to ASEAN member states.
But while Vietnam’s imports from ASEAN countries have increased sharply since
2015, its exports to the highly competitive markets have not.
To make the best use of the AEC’s potential, Vietnamese businesses need to
stand ready to tap opportunities. They must change their mindsets and consider competition
pressure a motivation for renovation and development, Anh said.
Local firms should actively study and update information relating to preferential
tariff commitments and requirements for product origin in order to fully tap
opportunities to develop markets, while investing more in production
technology, administration and human resources quality, he added.
Held by Saigon Times newspaper and Saigon Times Club’s 2030 Business
Club, the seminar was attended by executives from around 300 firms.-VNA