Exports need to accelerate to penetrate new potential markets

	Russia exports one more batch of pork to Vietnam
	Vietnam earns 3.8 billion USD from fruit and vegetable exports
	Agro-forestry-aquatic product exports up nearly 19% in seven months

Import and export activities at Da Nang port. Photo: Ngoc Linh

New growth opportunities

According to the General Department of Customs, by mid-July 2024, the total import and export turnover of the whole country reached nearly 403 billion USD, of which, the export turnover alone reached 207.25 billion USD, an increase of 15.19% over the same period last year. In general, from the beginning of the year to July 15, our country still had a trade surplus of 11.88 billion USD. In addition to the recovery of traditional markets such as the United States, China, the EU, and South Korea, there was an increase from new markets such as Africa, Eastern Europe, Northern Europe, and West Asia. This result was achieved thanks to efforts to diversify export markets.

According to the Ministry of Industry and Trade, in addition to solutions to support enterprises, the Ministry focuses on promoting export promotion activities for key markets, especially making the most of incentives brought by FTAs ​​such as CPTPP, EVFTA, RCEP... Supporting enterprises to carry out trade promotion activities in the new and potential markets, that individual enterprises do not have the conditions to directly penetrate.

In fact, besides the Majors such as the US, EU, China, Brazil, India, United Arab Emirates (UAE)... are potential new markets with large import demand that Vietnamese goods need to accelerate to enter deeper.

Trade Counselor of the Vietnam Trade Office in Romania Pham Thi Thu Ha said that in the first 6 months of 2024, bilateral import-export turnover reached 241.5 million USD, an increase of 31.3% over the same period in 2023. Vietnam's exports to Romania increased in all commodity groups, partly due to the general decrease in exports in 2023, so in 2024, they regained growth momentum. Romania is a potential market for Vietnamese enterprises to exploit and promote exports, especially for small and medium-sized enterprises with moderate financial scale. Ms. Ha added that Vietnamese enterprises have many opportunities to promote the export of goods to Romania, because in April 2024, Romania joined the Schengen area by air and water and is trying to complete the necessary procedures to be able to fully join the road.

Pointing out potential areas for domestic enterprises to be interested in and cooperate with, Ms. Ha said: Romania is a relatively large producer and supplier of agricultural products in Europe, market access should focus on some niche products in which Vietnam has particular competitive strengths such as biological products in the livestock industry, petrochemicals, petroleum, textile raw materials, etc.

Mr. Ngo Xuan Ty, Head of the Vietnam Trade Office in Brazil (concurrently in charge of Bolivia, Guyana, Peru and Suriname) said that the Brazilian market is a Top 10 economy in the world, belongs to the G20 group and is a leading country in the South American Market Community (Mercosur). Although Vietnam is currently Brazil's largest partner in ASEAN, with trade turnover reaching 3.5 billion USD in the first half of this year, up 24% over the same period last year, we mainly have a trade deficit with this market (Vietnam exported 1.14 billion USD to this market and imported 2.35 billion USD). "Brazil is a market with a large population and high consumer demand. This is also an easy-going market, not too strict in terms of standards like other developed countries. However, we currently mainly export textiles, footwear, rubber, phones and components, iron and steel, and seafood to this market," said Mr. Ngo Xuan Ty, adding that Peru is also a member of the CPTPP Agreement that Vietnam has joined, but we have not yet fully exploited the potential of this market. We hope that businesses and localities will pay attention to promoting this market. Or the Halal market (for Muslims) with 2 billion people in the world, global spending on Halal food could reach 1,900 billion USD by 2030, which is also a potential market for Vietnamese goods. Ms. Nguyen Minh Phuong, Head of West Asia, Africa - Asia - Africa Market Department, Ministry of Industry and Trade said that this is a market with great potential for Vietnamese goods and products. Regarding the market, besides the large Halal product consumption markets in Southeast Asia such as Indonesia, Malaysia or other countries such as Bangladesh, Egypt, countries in the Africa - Middle East region such as Saudi Arabia, UAE... are also markets that import many Halal products. However, businesses need to grasp the business practices, updated standards and regulations of each potential product when trading in this market.

Strengthening connectivity

The Head of the Vietnamese Trade Office in Brazil admitted that goods from Vietnam to South America will incur high logistics costs due to the long geographical distance. In addition, import taxes are also high because Vietnam and Brazil do not have a common agreement, and are also affected by trade defense measures from this market. However, if we exploit the Brazilian market well, we will have the opportunity to penetrate deeper into the large South American market. The Vietnamese community in this country is eager to be supported, connected, and facilitated to develop their business. This is also a channel to bring Vietnamese goods to Brazil and South America. "We should promote and propose to start FTA negotiations with the Mecosure bloc, of which Brazil is the largest member. We should study and develop the logistics market with Brazil because this is the largest transit point for goods in South America, both by air and sea," Mr. Ty suggested.

Mr. Bui Trung Thuong, Vietnam Trade Office in India, said that the trade turnover between Vietnam and India is currently about 15 billion USD, and the two sides aim to increase the turnover to 20 billion USD. India is currently one of the fastest growing economies in the world with a strong vitality. It is considered a new center of the world when it can cooperate in business with the US, Russia, China or many large markets. Vietnam needs to determine India's strategic position to have an effective cooperation mechanism with this market. According to Ms. Pham Thi Thu Ha, in the coming time, to promote exports to the Romanian market, the Trade Office recommends and proposes that the Ministry of Industry and Trade as well as domestic ministries and sectors promote the organization of multi-industry business delegations to explore the market and connect for cooperation. In the past 3 years, Vietnam has not sent any business delegations to Romania. Meanwhile, at meetings, the Trade Office with Romanian Chambers of Commerce and Industry and Industry Associations were very interested in inviting Vietnamese enterprises to explore the market and were ready to support B2B connections.