The market is shifting, forcing the industry to speed up to adapt

VCN - A series of new policies from the import market pose many challenges for domestic export businesses, in which textiles, furniture and household appliances are directly affected industries.
Unsustainable goods will be less competitive in the EU market Unsustainable goods will be less competitive in the EU market
The United States - a potential market for exporting goods The United States - a potential market for exporting goods
The market is shifting, forcing the industry to speed up to adapt
Businesses adapt to new trends. Photo: NT

Pressure on three strong industries

In 2022, the textile and garment and footwear industries will witness the highest export growth ever. Of which, textiles and garments reached USD 37.5 billion, an increase of 14.3%; footwear reached USD 23.9 billion, up 34.3% over the same period. Export of wood products, which accounts for a large proportion of the structure of the furniture and household appliances industry, also reached USD 10.9 billion, down 1.3% compared to 2021.

At the conference "Bringing Vietnamese fashion, furniture and household goods into the foreign distribution system" in mid-September, Mr. Ta Hoang Linh, Director of the European - American Market Department (Ministry of Industry and Trade) said , the group of Vietnamese fashion, furniture and household appliances still has many competitive advantages, especially in product quality, technical level, and the ability to meet strict requirements for labor, environment, especially tariff incentives from 15 existing bilateral and regional FTAs with many partners around the world, especially CPTPP, EVFTA, UKVFTA...

“Vietnam has risen to become one of the world's largest exporters of this product group, in which Vietnam is currently the 2nd largest exporter of leather and footwear, 3rd largest exporter of textiles and garments and 5th largest exporter in the world of wood and wood products," said Mr. Ta Hoang Linh.

However, after a strong post-Covid-19 recovery period, Vietnam's fashion and household goods industry faces unprecedented difficulties in exporting to the world, mainly due to inflation, risk of economic recession, decline in consumption, especially with the group of non-essential items with a large amount of inventory after the import period to prevent supply chain disruption.

In the first 8 months of 2023, the fashion product group including textiles, garments and footwear, export turnover to a number of key markets witnessed a relatively sharp decline. The most important export market for Vietnamese textiles, garments and footwear is the United States, export turnover decreased by 22.7% and 32% respectively over the same period.

The EU market also witnessed a similar export deceleration when leather and footwear export turnover decreased by 19%, and textile and garment showed more positive signs with growth of 12.3%. Exports of wood and furniture to the US and EU face an even bleaker situation, falling by 27% and 40% respectively in the first eight months of 2023.

Along with that, in recent times, key export markets of Vietnam's fashion and household appliances industry, such as the United States, EU, Northeast Asian countries or CPTPP countries are increasingly setting new standards; more stringent requirements from the market, related to greening production and supply chains, sustainable development criteria, circular production... pose many unprecedented challenges for domestic export enterprises.

Mr. Ta Hoang Linh also said that most recently, the EU market has introduced a policy to use recycled products for textile products and accelerated the implementation of the circular and sustainable textile strategy set out in 2019. 2022 puts Vietnamese businesses under pressure to go green and digitally transform to keep orders and market share.

In mid-May, the EU also issued a law on the Carbon Border Adjustment Mechanism (CBAM). This regulation forces importers into the EU to report carbon emissions in goods.

At the end of June, the EU issued the Anti-Forest Degradation Regulation (EUDR). Accordingly, companies trading wood and derivative products in the EU must prove that the goods they sell are not related to deforestation activities after 2021.

As a large private furniture enterprise in the world, Mr. Giafar Safaverdi, Director of Southeast Asia Supply Region, IKEA Group emphasized that Vietnam is a strategic supply market in the global supply chain of IKEA. Vietnam possesses growing production capacity and policies that create favorable conditions for import and export activities, along with many advantages in the field of logistics, making Vietnam an important link in the IKEA's global supply chain.

Talking about the criteria for import sources, Mr. Giafar Safaverdi emphasized that Vietnam is an important wood supply market for IKEA's suppliers. For decades, IKEA has worked with different partners in Vietnam to improve sustainable forest management. “Regardless of where IKEA's suppliers source their wood, to minimize the risk of wood without not meeting supply chain requirements, including legal requirements, we ask our partners to only supply and Using wood materials certified by FSC", Mr. Giafar Safaverdi said.

Opportunities for pioneers

According to Mr. Ta Hoang Linh, in order to meet market requirements and help regain growth momentum for strong industries, green transformation and application of the circular economy model are inevitable development trends and this trend is gradually forming new rules of the game for trade and investment globally.

Ms. Nguyen Thi Thu Trang said that the sustainable green product market is a very promising market, with little competition compared to the less green market that is currently saturated. Therefore, those who can do it first, get ahead and catch up; the market will be more open.

By Ngoc Linh/Bui Diep

Related News

The outlook for maturing real estate corporate bonds might be more positive in 2024 compared to 2023

The outlook for maturing real estate corporate bonds might be more positive in 2024 compared to 2023

VCN - Customs News interviewed financial expert Nguyen Tri Hieu (Photo).
Developing specialty coffee to enhance the value and reputation of Vietnamese coffee

Developing specialty coffee to enhance the value and reputation of Vietnamese coffee

VCN - Investing in the high-end segment is a way to increase value for the coffee industry, in which specialty coffee is a direction that businesses and cooperatives are interested in and is bringing positive results.
The two "main drivers" in agricultural export still have weaknesses

The two "main drivers" in agricultural export still have weaknesses

VCN - Exporting rice and vegetables have many advantages in the market. These are two key products that continue to help agricultural exports earn more foreign currency. However, there are still limitations and weaknesses in growing areas, unequal quality and business linkages.
Transparent information protects consumer rights

Transparent information protects consumer rights

VCN - Mr. Vu Van Trung, Vice Chairman of the Vietnam Consumer Protection Association, talked about the issue of consumer protection when the Law on Consumer Rights Protection (amended) will take effect from July 1, 2019. 2024 is here.

Latest News

Import-export turnover reached nearly US$65 billion in May

Import-export turnover reached nearly US$65 billion in May

VCN - Import and export in May continued to remain at a high level and was the month with the second highest turnover in the first 5 months of the year.
Russia’s Far East potiential destination for Vietnamese businesses: official

Russia’s Far East potiential destination for Vietnamese businesses: official

There is ample room to promote trade between Vietnam and Russia’s Far East, head of the Vietnam Trade Office Branch in the Far East region Nguyen Hong Thanh said in an interview with the Vietnam News Agency (VNA) ahead of the state visit to Vietnam by President Vladimir Putin.
Exports up 13.8% in first half: ministry

Exports up 13.8% in first half: ministry

Vietnam’s exports expanded about 13.8% year-on-year in the first half of this year, and imports rose 18.4%, the Ministry of Industry and Trade (MoIT)’s Planning and Finance Department said at a press conference in Hanoi on June 19.
Seafood businesses clearly point out barriers affecting exports

Seafood businesses clearly point out barriers affecting exports

VCN - Many seafood businesses have mentioned barriers that are affecting exports that need to be removed.

More News

Many exported seafood products have experienced high growth

Many exported seafood products have experienced high growth

VCN - Except for shrimp products, which decreased slightly, all exported seafood products in May 2024 all grew well, including many products with high double-digit growth spurts.
Export turnover increases over 14.9%

Export turnover increases over 14.9%

VCN - By the end of May, export activities maintained a double-digit increase with a turnover of US$156.28 billion.
Rice exports to China drop sharply

Rice exports to China drop sharply

VCN - While the amount of rice exported to Southeast Asian markets increased sharply, the results in the Chinese market were the opposite.
Germany supports Vietnam’s garment industry in green transformation

Germany supports Vietnam’s garment industry in green transformation

Five pilot projects on green technology for Vietnamese textile and garment exporters went on show at the ‘For a Sustainable Garment and Textile Industry in Vietnam’ show held in Hanoi on June 17.
Tuna exports expected to grow by 20% in H1

Tuna exports expected to grow by 20% in H1

Tuna exports are projected to reach 456.8 million USD in the first half of 2024, a year-on-year increase of 20%, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Recovery underway, businesses need to accelerate credit

Recovery underway, businesses need to accelerate credit

VCN - In recent directives, the monetary policy regulatory body continues to urge banks to implement practical and effective solutions to strive for credit growth across the system, aiming for a 5-6% increase by the end of Q2 2024.
Seafood exports in 2024 aim for US$10 billion

Seafood exports in 2024 aim for US$10 billion

VCN - On June 10, 2024, at the 2024 General Assembly of Members held by the Vietnam Association of Seafood Exporters and Producers (VASEP), seafood enterprises and regulatory agencies proposed numerous solutions to achieve the goal of US$10 billion in exports for 2024.
New opportunities for Vietnam-Russia trade

New opportunities for Vietnam-Russia trade

The upcoming official visit to Vietnam by Russian President Vladimir Vladimirovich Putin is expected to open up new opportunities in bilateral relations, aiming towards the prosperous development for both sides.
MoIT launches anti-dumping probe into galvanised steel originating from China, RoK

MoIT launches anti-dumping probe into galvanised steel originating from China, RoK

The Ministry of Industry and Trade (MoIT) has requested an investigation and application of anti-dumping measures against some galvanised steel products originated from China and the Republic of Korea (RoK).
Read More

Your care

Latest Most read
Import-export turnover reached nearly US$65 billion in May

Import-export turnover reached nearly US$65 billion in May

Import and export in May continued to remain at a high level and was the month with the second highest turnover in the first 5 months of the year.
Russia’s Far East potiential destination for Vietnamese businesses: official

Russia’s Far East potiential destination for Vietnamese businesses: official

There is ample room to promote trade between Vietnam and Russia’s Far East, head of the Vietnam Trade Office Branch in the Far East region Nguyen Hong Thanh said in an interview with the Vietnam News Agency (VNA) ahead of the state visit to Vietnam by President Vladimir Putin.
Exports up 13.8% in first half: ministry

Exports up 13.8% in first half: ministry

Vietnam’s exports expanded about 13.8% year-on-year in the first half of this year, and imports rose 18.4%, the Ministry of Industry and Trade (MoIT)’s Planning and Finance Department said at a press conference in Hanoi on June 19.
Seafood businesses clearly point out barriers affecting exports

Seafood businesses clearly point out barriers affecting exports

VCN - Representing seafood businesses at the recently held all-member conference, Mr. Truong Dinh Hoe, General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), said the export forecast Aquaculture in the future will be full
Many exported seafood products have experienced high growth

Many exported seafood products have experienced high growth

Except for shrimp products, which decreased slightly, all exported seafood products in May 2024 all grew well, including many products with high double-digit growth spurts.
Mobile Version