USA remains potential market for Vietnamese exports

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USA remains potential market for Vietnamese exports

TH BY, 26 THNG 1 2013 01:34

In recent years there has been a lot of stress on search for new
markets for Vietnam's exports, but according to analysts and
many enterprises, the US market remains a potential market for
Vietnamese exporters to further develop.

Nguyen Duy Khien, head of the American Market Department

under the Ministry of Industry and Trade, has reiterated export potential and opportunities for
Vietnamese products in the US market many times. As a highly populated country with lavish
spending habits, the US imports more than US$2 trillion worth of goods annually. However,
Vietnamese products only account for 1 percent of US imports, though it is currently one of two
biggest importers of Vietnam.
Vo Truong Thanh, chairman cum CEO of Truong Thanh Furniture Corporation, also reckoned that
furniture industry and other export industries of Vietnam should promote exports to the US
market. To lessen concerns about 'putting all eggs in one basket', he explained that during the
economic recession there was a slump in consumer demand in the US, but not very much, and
many Vietnamese export products still maintained growth in the past year.
For instance, garment and textile exports still posted a growth of 9.2 percent last year and were
expected to keep growing this year as among $100 billion worth garment and textile imports in
the US, Vietnamese products merely account for a modest $7.6 billion.
Similarly, the US market currently was the largest furniture importer with more than 40 percent of
market share but Vietnamese wooden products just account for a small portion of this market.
In addition, the fact that Vietnamese products remained of poor quantity because the country only
concentrated on exporting traditional merchandise such as garment and textile, footwear and
furniture, which all lack persity. This has lowered export value and once the advantage of low
labor cost vanishes, Vietnam will lose its strong point when exporting such merchandise.
With huge potential, the US market is waiting for Vietnamese enterprises to discover the potential.
However, opportunities come with challenges.
Because of the high demand, many countries will want to bring their products to the US market;
hence, fierce competition is inevitable. Especially, Chinese products have become a big challenge
for Vietnam.
Plus, in order to make US importers switch from buying goods from their regular partners to
buying goods from Vietnamese exporters, the latter have to offer high-quality products at lower
price or more unique than others. Nevertheless, due to its geographic distance, Vietnamese
enterprises have to bear higher shipping costs. Vietnam has not received preferential duties, and
in addition, trade barriers put up by the US Government against import products from some

05/15/14 4:37 PM

USA remains potential market for Vietnamese exports

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countries, including Vietnam also have been causing headaches for businesses.
Among trade barriers, anti-dumping duty was imposed on many Vietnamese export products. Of
late, the US Coalition of Gulf Shrimp Industries has continuously proceeded against Vietnamese
frozen shrimps. Food industry also worries about new regulations of the US Government.
Accordingly, Vietnamese food exporters not only have to register again on food facilities with the
US Food and Drugs Administration (FDA) in order to be able to export products to the US market
since January 1, 2013 but also have to maintain contact all day with their US partner. This means
that each business has to have a representative, who can be an inpidual, a company, or an
organization whose headquarter is located in the States and register with the FDA. This
representative will play an on-site contact role and maintain constant interaction with the FDA.
Moreover, importers usually order big contracts while most Vietnamese companies fail to fulfill this
requirement as for larger orders they must use intermediaries.
Source SGSP
Tin mi hn:
19/06/2013 - Shrimp exports fall due to shortage of material, skilled labor
19/06/2013 - Telephone exports forecast to hit US$20 billion in 2013
11/05/2013 - Timber exports in 2013
08/05/2013 - Export turnover on year-on-year increase
08/05/2013 - Fruit, vegetable sector strives to increase export turnover
19/02/2013 - Vietnam exports 400,000 tonnes of rice in January
19/02/2013 - Export of office furnishing items seen stronger
26/01/2013 - Exports soar 43% in January
Tin c hn:
09/01/2013 - Garment makers optimistic for 2013
04/01/2013 - Vietnam hits record export rice volume in 2012
04/01/2013 - VFA optimistic of higher rice exports this year
15/12/2012 - Domestic exports set to reach record highs
15/12/2012 - BR-VT fetches US$800 million of exports from supporting industries
15/12/2012 - HCM City exports to top $30b
13/12/2012 - Viet Nam anticipates record-high rice exports
06/12/2012 - Garment-textile export accelerates to achieve target
06/12/2012 - VNs tuna exports on the rise
13/11/2012 - Vietnams rice export likely to set record high this year
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05/15/14 4:37 PM