Businesses overcome barriers to deeply penetrate the US market

VCN - The export market has always been a challenging equation not only for small and medium-sized enterprises but also for large units. Particularly for premium markets like the US and the EU, getting Vietnamese products into these markets is always a key objective.
Wide door opened for export Startups to the US market Wide door opened for export Startups to the US market
The opportunities for businesses to exploit the US market The opportunities for businesses to exploit the US market
Businesses overcome barriers to deeply penetrate the US market
The US remains Vietnam's largest export market. Photo: Internet

Potential Market

According to the latest statistics from the General Department of Customs (as of May 11), Vietnam's total export turnover in the first four months of 2024 reached US$123.99 billion, an increase of 15.1% (equivalent to an increase of US$16.26 billion) compared to the same period last year. Notably, the five largest and most impressive growth markets are the US, China, the EU, ASEAN, and Hong Kong (China).

Thus, the US continues to be Vietnam's largest export market and one of the fastest-growing markets.

Specifically, the total export turnover to the US reached US$34.72 billion, an increase of 21.2% (equivalent to an increase of US$6.07 billion) compared to the same period last year. In the past four months, major export groups to the US included: computers, electronic products, and components reaching US$6.8 billion, up 43.8%; machinery, equipment, tools, and parts reaching US$5.64 billion, up 5.7%; textiles reaching US$4.4 billion, up 5.7%; phones and components reaching US$3.81 billion, up 21.8%; wood and wood products reaching USUS$2.66 billion, up 31.9%; and various types of footwear reaching US$2.4 billion, up 14.2%.

Experts evaluated that the trade breakthrough with the US market was a positive signal for Vietnam's economy, especially in the context of the high USD exchange rate, providing better profit margins for businesses. This helps Vietnam diversify its markets and reduce dependence on China. It serves as a platform for Vietnamese goods to meet higher production standards, opening many opportunities in high-quality markets.

In an interview, Nguyen Liem, Chairman of the Binh Duong Wood Processing Association, noted that the US has always been the primary export market for the wood industry. Increasing exports to the US have contributed to positive results for the wood industry in the early months of 2024. Exports to this market accounted for 53.5% of the total export turnover of wood and wood products.

US importers highly value and identify Vietnam as a key supplier of wood and wood products, particularly in the important global furniture segment. This is evident as the US is the largest market for Vietnam's wood and wood products, and Vietnam is the number one supplier of wooden furniture to the US. This foundation offers significant potential for export breakthroughs if businesses can seize the opportunities.

Notably, in recent times, many wood industry businesses have quickly studied market trends and shifted from processing exports to designing new, attractive, and high-quality models, which have been highly appreciated by international buyers. This is a good sign that Vietnam's wood processing and furniture industry is on the right track, not only increasing export turnover but also gradually enhancing the position and brand of Vietnam's wood products in the international market.

Barriers to overcome

Despite many potentials and advantages, experts noted that to deeply penetrate this demanding market, besides supply capacity and competitive prices, Vietnamese businesses must also meet the US market's standards and regulations, including requirements for certification, clean products, safety, and environmental responsibility.

At the recent "Global market penetration" workshop held in Ho Chi Minh City, a representative from the US Agency for International Development (USAID) indicated that while Vietnamese businesses export many products worldwide, groups such as seafood, agricultural products, food, pharmaceuticals, and beverages still face numerous trade barriers. This is primarily because most Vietnamese businesses have not fully accessed or thoroughly understood the regulations regarding food and drug safety when importing, as well as the procedures and processes to enter stringent markets like the US.

Nguyen Thi Bich Thuy, Deputy Head of the Small and Medium Enterprises Department under the Business Development Agency (Ministry of Planning and Investment), mentioned that many businesses wanted to expand their markets and export products globally but did not know where to start. What they currently lack is a strategy to guide them on meeting US standards, where to apply, and which agencies can issue certifications. To achieve this, they need consulting units to help small and medium enterprises access information most effectively.

In reality, the output market is always a significant and challenging equation not only for small and medium enterprises but also for large companies. Especially for high-end markets like the US and the EU, getting Vietnamese products and goods into these markets is always a key objective for Vietnamese businesses. Traditional business models require significant effort to access international markets.

Additionally, small and medium units need to gradually make their operations and financial data transparent to build trust with domestic and international partners.

By Thu Diu/ Ha Thanh

Related News

Regulating goods across Huu Nghi International Border Gate during peak times

Regulating goods across Huu Nghi International Border Gate during peak times

VCN – In order to reduce the pressure on customs clearance of import and export goods for the international border gate pair during peak times, the management agency of Lang Son (Vietnam) has just discussed with the management authority of Pingxiang (China) to strengthen coordination in regulating the means of transporting goods of enterprises on both sides.
Khanh Hoa Customs reaches revenue target 1 quarter early

Khanh Hoa Customs reaches revenue target 1 quarter early

VCN - Many key import items increased sharply, along with efforts in trade facilitation, tax debt collection, so in just 9 months of 2024, Khanh Hoa Customs Department completed the state budget revenue target.

Latest News

Many factors affecting tuna exports in the last months of the year

Many factors affecting tuna exports in the last months of the year

VCN - Tensions between Israel and Iran escalate, tuna businesses are worried, they may have to stop export orders to the Israeli market in the last months of the year.
Vietnam still dominates Philippine rice import

Vietnam still dominates Philippine rice import

Vietnam continues to assert its dominance as the top rice exporter to the Philippines, with 2.91 million tonnes shipped as of the late October, or over 79% of the Philippines' total rice imports, according to the Vietnam Trade Office in the Philippines.
Vietnam cements ties with partners to engage in global semiconductor, AI industries

Vietnam cements ties with partners to engage in global semiconductor, AI industries

By boosting cooperation with reputable partners across the globe, Vietnam is taking steps to gain a foothold in the world’s semiconductor and artificial intelligence (AI) industries.
Aquatic exports expected to rise in year-end despite challenges

Aquatic exports expected to rise in year-end despite challenges

Aquatic exports is expected to surge in the remaining months of this year, as the year-end festive season comes, despite many challenges in the international markets, according to insiders.

More News

Trade Defense: The Key to Success for Vietnamese Businesses

Trade Defense: The Key to Success for Vietnamese Businesses

VCN - From losses and near bankruptcy, many domestic enterprises have recovered thanks to timely application of trade defense measures. Trade defense is also an effective shield for Vietnamese enterprises against a series of lawsuits from importing countries, thereby maintaining advantages and developing on "away grounds".
Lao Cai Customs sees a triple-digit surge in export-import turnover

Lao Cai Customs sees a triple-digit surge in export-import turnover

VCN - Updated from the beginning of the year to October 24, total import and export turnover through Lao Cai Customs Department increased by 102%.
Coconut is expected to become a billion-dollar export item

Coconut is expected to become a billion-dollar export item

VCN - Talking to the press at the ceremony to launch the first train carrying fresh coconuts to China, Mr. Luu Van Phi, Director of the Department of Industry and Trade of Tien Giang province, said that Vietnam's agricultural export potential, especially fresh coconuts, is expanding with the appearance of international railway transportation from Song Than station.
Plastic exporters interested in converting to recycling technology

Plastic exporters interested in converting to recycling technology

VCN - The Vietnamese plastics industry is facing major challenges in terms of plastic waste and recycling needs. Secretary General of the Vietnam Plastics Association Huynh Thi My (pictured) shared important information about the transformation in production of plastics enterprises to meet increasing export demands.
Logistics sector must embrace innovative trends to stay competitive

Logistics sector must embrace innovative trends to stay competitive

The Vietnamese logistics industry must adapt to new trends and enhance infrastructure to remain globally competitive, speakers said at an event in Ho Chi Minh City on October 31.
Vietnam’s agro-forestry-aquatic product exports likely to set new record

Vietnam’s agro-forestry-aquatic product exports likely to set new record

Vietnam’s agro-forestry-aquatic product exports are likely to achieve a record high of 62 billion USD in 2024, said Deputy Minister of Agriculture and Rural Development Phung Duc Tien.
UKVFTA greatly benefits Vietnam-UK trade: Experts

UKVFTA greatly benefits Vietnam-UK trade: Experts

The UK-Vietnam Free Trade Agreement (UKVFTA), signed into law three years ago, has clearly benefited trade cooperation between the two countries, particularly in the context of Vietnam’s exports to most other major markets declining due to geopolitical tensions and headwinds in the global economy, said experts at a conference in Hanoi on October 30.
Agricultural exports likely to exceed 60 billion USD amid challenges

Agricultural exports likely to exceed 60 billion USD amid challenges

With swift production recovery and continued growth, Vietnam's agricultural sector could potentially surpass the 60 billion USD export target, according to the Ministry of Agriculture and Rural Development (MARD).
Vietnam-Philippines trade likely to exceed 8 billion USD for first time

Vietnam-Philippines trade likely to exceed 8 billion USD for first time

With the current rising trend, trade between Vietnam and the Philippines is likely to exceed 8 billion USD for the first time to hit about 8.5 billion USD in 2024, with Vietnam’s surplus of more than 3 billion USD, according to the Vietnamese Trade Office in the Philippines.
Read More

Your care

Latest Most read
Many factors affecting tuna exports in the last months of the year

Many factors affecting tuna exports in the last months of the year

VCN - In recent years, Israel has always been Vietnam's leading tuna export market after the US and the EU. Therefore, the recent escalation of Israel-Iran tensions is affecting Vietnam's tuna exports to this market.
Vietnam still dominates Philippine rice import

Vietnam still dominates Philippine rice import

Vietnam continues to assert its dominance as the top rice exporter to the Philippines, with 2.91 million tonnes shipped as of the late October, or over 79% of the Philippines' total rice imports, according to the Vietnam Trade Office in the Philippines.
Vietnam cements ties with partners to engage in global semiconductor, AI industries

Vietnam cements ties with partners to engage in global semiconductor, AI industries

By boosting cooperation with reputable partners across the globe, Vietnam is taking steps to gain a foothold in the world’s semiconductor and artificial intelligence (AI) industries.
Aquatic exports expected to rise in year-end despite challenges

Aquatic exports expected to rise in year-end despite challenges

Aquatic exports is expected to surge in the remaining months of this year, as the year-end festive season comes, despite many challenges in the international markets, according to insiders.
Trade Defense: The Key to Success for Vietnamese Businesses

Trade Defense: The Key to Success for Vietnamese Businesses

VCN - From losses and near bankruptcy, many domestic enterprises have recovered thanks to timely application of trade defense measures. Trade defense is also an effective shield for Vietnamese enterprises against a series of lawsuits from importing countr
Mobile Version