Enterprises in the pandemic: “Difficulty emerges the wisdom” – The last Part: Scoring points with European and American markets

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Over past years, exports have been an important channel contributing significantly to the development of HoaSen Group. Photo: HoaSen Group

Goods are still favorable for export

Talking to reporters of Customs Newspaper, a representative of Vietnam Precision Industry Co., Ltd. (VPIC1) said that, despite facing many difficulties, export orders to foreign markets of enterprises still increased. Goods exported to foreign countries are components: motorbikes, sleds, terrain vehicles; patient beds; trolleys for the disabled.

It is estimated that in the first six months, the export value of this enterprise reached over VND670 billion, of which, items sold to export processing enterprises and then exported to the US reached over VND312 billion.

It is also an enterprise that recorded export output to foreign markets with very good results in the first six months despite being affected by Covid-19.Recently, HoaSen Group completed exporting 50,000 tons of goods. Galvanized steel goes to Europe and America. The shipment includes: 35,000 tons exported to Europe and 15,000 tons exported to the Americas from Nghi Son International Port, ThanhHoa province and ThiVai international port, Ba Ria - Vung Tau province. This is to help businesses actively exploit the favorable conditions of the EU-Vietnam Free Trade Agreement (EVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Over the years, exports are a key channel of important contribution to the development of HoaSen Group. Ton HoaSen said, although in the peak months of the disease in March, April, and May 2020, the export output of HoaSen Group still grew strongly. Export volume to Europe and America increased by 127% over the same period last year, particularly the European market grew by 318% over the same period.

This enterprise also said that export volume in June 2020 was maintained, reaching 46,000 tons, HoaSen factories across the country still increased production to fully and promptly meet market demand.

"Bright chance" in the last six months

Not only with VPIC 1 or HoaSen Group, looking at the overall picture of export activities today, we can see that despite facing a great challenge from the Covid-19 pandemic, but there is room for improvement. In particular, the European and American markets are a bright spot of Vietnamese export enterprises.

Commenting on the export market to Europe and the US in the first six months, expert Nguyen XuanThanh, lecturer of Public Policy and Management of Fullbright School, said that sincethe beginning of the year, some key export markets of Vietnam, such as the United States, the EU and the United Kingdom and China, experienced growth despite the impact of the Covid-19 pandemic. In particular, the US was Vietnam's largest export market in the first months of the year with a turnover of US$31.5 billion, up 14.6% over the same period last year. Due to the shifting trend due to the impact of the US-China trade war, Vietnam's electronic exports to the US and China have increased sharply in the first six months of 2020.

According to Assoc.Prof.Dr. Pham Tat Thang, Senior Researcher, Institute for Industry and Trade Policy Strategy, globally, many economies have launched large-scale stimulus packages due to the negative impact of Covid-19 on the economy.

Most countries have increased fiscal spending to cope with diseases, maintain essential economic activities and support workers. Increasing exports to the US market at the present time is a problem for export enterprises since this market itself is facing difficulties but also due to very strict non-tariff barriers.

However, if the US market can control the Covid-19 pandemic in the near future, the EVFTA will be a wide route to bring goods to this market. The US market needs to import goods such as textiles, footwear, furniture, especially phones, electronic components, etc. These are all items with large and major export turnover of Vietnam.

If Vietnamese enterprises make good use of the EVFTA, they can still compensate for the previous damage caused by the Covid-19 pandemic on export goods.

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“Therefore, export enterprises need to have a methodical strategy, and the most important thing is that based on their export capacity as well as meeting the standards of the output market, the export to the US is sustainable,”Pham Tat Thang said.