Export enterprises need to anticipate obstacles from the market

VCN - Green consumption and environmentally friendly products are trending in many countries. Since then, many regulations and standards from export markets have been applied and strengthened, making it difficult for Vietnamese goods to penetrate and maintain trade turnover. Mr. Tran Ngoc Quan, Vietnam Trade Counsellor in Belgium and the EU, said that Vietnamese enterprises need to be prepared to access and maintain the market in the European Union.
Double-digit growth thanks to the own way of enterprises from processing and exporting Double-digit growth thanks to the own way of enterprises from processing and exporting
Hurdles remain in aquatic export: VASEP Hurdles remain in aquatic export: VASEP
Export enterprises need to anticipate obstacles from the market
Mr Tran Ngoc Quan, Vietnam Trade Counsellor in Belgium and the EU

In the international context and changes in consumer trends, how do these affect the purchasing of European distribution channels? What do they do to diversify supply, Sir?

Monitoring consumption trends in Belgium and the EU shows that green, clean and sustainable goods are increasingly popular. Through agricultural fairs, we see that the value of green, clean and bio-based products is increasing for food products. Textiles, footwear, and many others are increasingly moving towards environmental standards. This consumer trend makes the EU turn it into legal documents. For example, programs in the European Green Deal, or circular economy, are being legislated into legal regulations. Along with that, environmental standards, social responsibility, and labour standards are issued increasingly strictly.

Since then, products produced in green, clean, environmentally friendly, and sustainable development increasingly have a position in the EU market. That change in consumption trends leads to certain changes in purchasing trends in Vietnam. Purchasing enterprises in Belgium are not only looking for exporters to import products but also aiming to partner with manufacturers and exporters to orient production jointly. They will go with that cycle from production, purchasing, and storage to ensure the product meets market and EU standards.

The European Commission (EC) has recently proposed applying a mandatory extended producer responsibility program (EPR) to textile and garment manufacturing enterprises. Accordingly, textile and garment manufacturing enterprises must ensure responsibility for the product's entire life cycle, supporting the sustainable management of textile waste throughout Europe. In your opinion, how does this affect Vietnamese exporters?

The proposal to apply a mandatory extended producer responsibility (EPR) program will put great pressure on the entire textile industry not only in Europe but also in countries exporting to Europe, requiring enterprises who are selling textile products in Europe to prepare for a circular cycle to ensure that the waste of the textile industry is reduced to the lowest possible level.

According to the assessment of the European Union, textiles are one of the four largest waste-generating sectors in the EU. Therefore, EPR will ensure enterprises reduce short-term fashion goods, encourage manufacturers to reduce waste and increase the circulation of textile products.

From the EPR regulations, European Union enterprises have gradually made certain changes. The first is to focus on the materials phase, creating recyclable, environmentally friendly materials. They may also ask suppliers to use sustainable and recycled materials and accept participation in the recycling of their products.

EPR regulations have a relatively large impact on Vietnamese enterprises because they must limit waste generation, so when applied in the short term, the number of orders will not be as large and massive as before. This means that each order value will adapt to each specific demand to reduce redundancy in product supply. In the long term, this regulation will limit access to the EU market under the Vietnamese brand. To sell textiles and garments under the Vietnamese brand, it is necessary to combine a system of purchasing, distributing, repairing, and warranty... this is a costly process, not only exporting and selling the product.

In the short term, this regulation affects each contract and order and, in the long term, affects the right to access the market under its brand. Besides, this requirement also creates certain constraints that require all enterprises to convert. This production conversion cost is relatively expensive and takes a long time. Therefore, Vietnamese enterprises must prepare in advance to access and maintain the market in the European Union.

In October, the EU will impose a carbon tax on some products exported to this market. How will this affect Vietnamese enterprises' market access and production chain in the European Union?

Carbon balance is a huge concern in the EU because many items greatly affect the environment. That's why the EU has introduced a carbon tax applicable to four main sectors; after that, it will evaluate its wider application to industries that directly use too much carbon output. In Vietnam, in the early stages of application, carbon tax regulations will directly affect iron and steel products. In the long term, many products will be affected if the products use inputs that create a lot of carbon.

Thank Sir!

By Ngoc Linh/ Binh Minh

Related News

Latest News

VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - As one of Vietnam's strong export industries to the UK, especially when the Vietnam - United Kingdom of Great Britain and Northern Ireland Free Trade Agreement (UKVFTA) comes into effect, with a detailed information approach strategy, it has created a great driving force to promote the export of Vietnamese seafood products to this market.
Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

VCN - By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN – In recent years, with the rapid development of cross-border e-commerce (CBEC) platforms, domestic enterprises in Vietnam have been facing numerous difficulties and challenges.

More News

Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Shrimp exports surge in 10 months, generating 3.2 billion USD

Shrimp exports surge in 10 months, generating 3.2 billion USD

Vietnam’s shrimp exports in October reached US$394 million, a strong 24% increase year-on-year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Vietnam’s exports to the U.S. near US$100 billion milestone

Vietnam’s exports to the U.S. near US$100 billion milestone

VCN - By the end of October, Vietnam's exports to the United States approached US$100 billion, reaffirming its position as Vietnam's largest export market.
From the “abnormal” coffee price, worries about the new crop

From the “abnormal” coffee price, worries about the new crop

VCN - The Vietnamese coffee industry enters the new crop with the question of what is a reasonable price to ensure benefits for coffee growers while still retaining international consumers.
What obstacles limit the market share of Vietnamese goods in the UK?

What obstacles limit the market share of Vietnamese goods in the UK?

VCN - Vietnamese goods account for only about 1% of total imports into the UK market. One of the reasons is that they have not yet built their own brands and have not focused on effective strategies and approaches to market information.
Why seafood exports to some Middle Eastern Countries are stalled

Why seafood exports to some Middle Eastern Countries are stalled

VCN - Several shipments of seafood exported to certain Middle Eastern countries have been delayed due to legal challenges related to consular legalization procedures. This has created significant bottlenecks in accessing these markets.
Storm No. 3 destroys profits of many insurance companies

Storm No. 3 destroys profits of many insurance companies

VCN - Due to the impact of storm No. 3, the business results of the third quarter and the first 9 months of 2024 of the insurance sector have been significantly affected. This requires more efforts from businesses for the results of the whole year 2024.
Vietnam, Malaysia eye golden partnership opportunities in Halal industry

Vietnam, Malaysia eye golden partnership opportunities in Halal industry

Cooperation in the Halal industry can help Vietnamese products reach nearly 2 billion Muslim consumers worldwide, representing over 24% of the global population, according to Malaysia’s Minister of Investment, Trade, and Industry Zafrul Abdul Aziz.
Tra fish sector aiming for production, processing greening for sustainable development

Tra fish sector aiming for production, processing greening for sustainable development

Greening production and processing to meet export requirements is both a trend and a necessity for many industries, including the tra fish sector.
Read More

Your care

Latest Most read
VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - Mr. Nguyen Hoai Nam, Deputy General Secretary, Vietnam Association of Seafood Exporters and Producers (VASEP), said that the advantage that UKVFTA brings is that the main products of the seafood industry enjoy 0% import tax to the UK, especially key
Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN - E-commerce platforms have emerged as crucial distribution channels, enabling goods to reach consumers quickly and conveniently.
Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Mobile Version