Businesses seek clear path into lucrative US market
In the first half of the year, Vietnam’s total export turnover to the US soared 10% to US$21 billion against the same period last year, accounting for 19% of the country’s total export turnover, according to statistics from the Ministry of Industry and Trade.
Notably, Vietnam’s exports to the US grew at a rate of 20% per year for several years but there remain challenges for Vietnamese businesses when exporting to the market.
Mr Nguyen Thang Vuong, from the European and American Markets under the Ministry of Industry and Trade said the export capacity of Vietnamese businesses remains weak, while the US is a competitive market with high costs, longer transport times, and a complicated system of trading laws.
Increasing technical barriers on food safety and protection of domestic production is another hindrance.
Mr Dao Tran Nhan, former Counselor of the Vietnam Trade Office in the US, said the FDA Food Safety Modernization Act (FSMA) is the biggest obstacle for export businesses, which needs to be surmounted to gain access to the demanding market.
The Act has placed the burden of responsibility for food safety and hygiene and supervision on the shoulders of importers and manufacturers. One of the strict requirements set by the FSMA is to formulate a food safety and hygiene program at production facilities. Businesses must establish the program when they begin to produce goods, as the US will trace the origin of their products before entry to the market.
Under the program, the American side requests that Vietnamese staff have good qualifications, a strong command of English and the necessary level of experience to implement the program as required by the US Food and Drug Administration (FDA). When exporting food and drinks, businesses need to anticipate that a US delegation will carry out surprise inspections of their production facilities and factories, Mr Nhan noted.
Many countries share the view that the fastest way to penetrate the US market is through retail channels.
For example, the US retail giant Walmart has sales amounting to nearly US$500 billion per year with 140,000 types of goods and 11,500 stores in 28 countries, while The Kroger Company has 2,796 stores in 35statesacross the US with sales reaching US$115 billion per year.
Mr Nhan pointed out that there is no simple process to gaining shelf space at Walmart or Kroger and the plan to export through US supermarkets in Vietnam is not feasible as almost all of the US’ biggest retailers have no presence in Vietnam.
One of the criteria for Walmart to open a store in a country is that its market has at least 100 million people. At present, Walmart is targeting mass markets such as China and India.
Mr Nhan said the plan to sell goods directly through major supermarkets in the US is unlikely to be successful. There are about 1,000 companies lining up to offer their goods on sale at Walmart every day. He advised businesses to gain access to the US market through representative offices and branches of giant retail groups in Vietnam.
At present, Walmart and Target have established branches in HCM City, he said, noting that such retail groups often pay greater attention to issues such as salary, working hours, welfare, environmental protection and, training activities for workers.
For example, retail giants set up standards and regulations for suppliers such as the design of emergency exit doors, interior paths, and greenery in factories.
Inspections are conducted by the retailers after every six months to check if the products have met the requirements for export to their supermarkets.
Related News
Complying with regulations of each market for smooth fruit and vegetable exports
13:06 | 09/01/2025 Import-Export
Ba Ria - Vung Tau Customs: A strategic partner in business success
22:00 | 31/12/2024 Customs
Quang Ninh Customs: making efforts to help businesses improve compliance
16:47 | 31/12/2024 Customs
Sustainable opportunities for Vietnamese goods to penetrate the global market
13:54 | 30/12/2024 Import-Export
Latest News
Việt Nam tightens fruit inspections after warning from China
08:01 | 15/01/2025 Import-Export
Brand building key to elevate Vietnamese fruit and vegetable sector: experts
08:00 | 15/01/2025 Import-Export
Freight transport via China-Việt Nam cross-border trains posts rapid growth
08:01 | 13/01/2025 Import-Export
Vietnamese retail industry expects bright future ahead
06:22 | 11/01/2025 Import-Export
More News
Fruit and vegetable industry aims for $10 billion in exports by 2030
15:12 | 07/01/2025 Import-Export
GDP grows by over 7 per cent, exceeds target for 2024
15:11 | 07/01/2025 Import-Export
Vietnamese pepper: decline in volume, surge in value
15:10 | 07/01/2025 Import-Export
Việt Nam maintains position as RoK’s third largest trading partner
15:09 | 07/01/2025 Import-Export
Greater efforts to be made for stronger cooperation with European-American market
15:08 | 06/01/2025 Import-Export
Leather, footwear industry aims to gain export growth of 10% in 2025
15:06 | 06/01/2025 Import-Export
Grasping the green transformation trend - A survival opportunity for Vietnamese Enterprises
14:53 | 06/01/2025 Import-Export
Việt Nam to complete database of five domestic manufacturing industries in 2026
20:57 | 05/01/2025 Import-Export
Logistics firms optimistic about growth prospects in 2025: Survey
20:54 | 05/01/2025 Import-Export
Your care
Việt Nam tightens fruit inspections after warning from China
08:01 | 15/01/2025 Import-Export
Brand building key to elevate Vietnamese fruit and vegetable sector: experts
08:00 | 15/01/2025 Import-Export
Freight transport via China-Việt Nam cross-border trains posts rapid growth
08:01 | 13/01/2025 Import-Export
Vietnamese retail industry expects bright future ahead
06:22 | 11/01/2025 Import-Export
Complying with regulations of each market for smooth fruit and vegetable exports
13:06 | 09/01/2025 Import-Export