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In the first 9 months of 2024, the industrial production index is estimated to increase by 8.6% over the same period last year. Illustrative photo: VNA

There are still many barriers from the market

According to the report of the Ministry of Industry and Trade, in the first 9 months of 2024, the industrial production index (IIP) is estimated to increase by 8.6% over the same period last year (the same period in 2023 increased by only 0.3%). Of which, the processing and manufacturing industry alone increased by 9.9% (the same period in 2023 increased by only 0.2%).

In terms of exports, the preliminary export turnover of the processed and manufactured industrial goods group reached 253.9 billion USD, accounting for 84.7% of the total export turnover and increasing by 15.2% over the same period in 2023 (the same period in 2023 decreased by 9.6%).

Many groups of processed industrial products had high double-digit growth in export turnover, including key export items such as: plastic products increased by 30.8%; wood and wood products increased by 21.5%; textiles and garments increased by 8.9%; footwear of all kinds increased by 12.5%; iron and steel of all kinds increased by 14.7%; computers, electronic products and components increased by 27.4%; cameras, camcorders and components increased by 30%; machinery, equipment, tools and other spare parts increased by 22%; phones of all kinds and components increased by 7.2%...

From the business perspective, sharing at the recent discussion "Promoting trade, creating 'leverage' for processed and manufactured industrial products", Mr. Cao Van Hung, Director of International Market Development of Smart Vietnam Precision Mechanical Company, said that with the strong shifting trends of enterprises from countries such as the US, UK, Australia, processing and manufacturing industrial enterprises have welcomed a new wave of shifting. The company's sales to the international market in the first 9 months of the year increased by 178% compared to last year.

Although the market has many positive signals, businesses still face challenges in expanding and diversifying export markets. According to Mr. Hung, one of the major barriers is high-quality human resources. At present, meeting the needs of the market and customers requires a large human resource, especially those directly involved in production activities. In addition, foreign partners have very high requirements for quality, requiring businesses to know how to connect with related parties to create a complete product. However, in the process of finding units with the same export mindset, meeting high export standards is a very difficult task.

Therefore, in order to improve their position and increase competitiveness, Vietnamese businesses need to directly research the market and listen to feedback from partners, thereby being able to improve products and capture the market.

Ms. Phan Thi Thanh Xuan, Vice President and General Secretary, Vietnam Leather, Footwear and Handbag Association, said: Many signs show that the export of the leather and footwear industry has recovered strongly since the last months of 2023, many businesses have signed export contracts for the whole year of 2024.

However, businesses face a number of challenges when the governments of importing countries are imposing strict regulations and barriers to Vietnamese leather and footwear exports. Specifically, the traceability requirements for raw materials are becoming increasingly strict in large markets such as the EU and the United States; or the footwear industry is facing the risk of being subject to anti-dumping taxes in some markets with sudden export growth such as Mexico or the Indian market, businesses are forced to comply with direct control conditions and must be granted footwear certification before being able to import and export to this market.

Solutions to improve competitiveness

According to Ms. Phan Thi Thanh Xuan, businesses are gradually improving and finding solutions to change to meet sustainable development of circular business, traceability to meet market requirements. In order to support localities and industries in implementing focused and effective trade promotion, and support businesses in removing difficulties in product consumption in the coming time, the Association recommends that Vietnamese Trade Offices in host countries research, synthesize, evaluate the market situation, update new regulations and policies of the countries to promptly advise the Ministry of Industry and Trade and the Government to have effective policy responses.

At the same time, it is possible to support domestic businesses in many forms, especially in handling trade defense cases, trade disputes, and removing trade barriers. “Trade offices also need to provide information and practical recommendations to help associations and industries in building and adjusting strategies, production and business plans, building brands, developing markets and effectively exploiting FTAs ​​that have come into effect in the European region to diversify markets, supply chains and products, contributing to boosting exports to other countries' markets,” Ms. Phan Thi Thanh Xuan shared.

To create momentum for supporting industrial products and processing and manufacturing to participate deeply in the global supply chain, according to Dr. Nguyen Minh Phong, competent authorities need to proactively continue to improve institutions in terms of organization, personnel and legal documents, policy mechanisms to support international integration and import and export in general, trade promotion in particular, such as proactively building and implementing trade promotion plans, linking production, connecting supply and demand, promoting the image, brands of industries, and local products of economic regions.

Strengthen the presence of Vietnamese enterprises, industries, and product brands at major international fairs and exhibitions; organize trade delegations in markets with FTAs, key export markets, and potential markets.

In addition, strengthen links and business cooperation to develop production chains and value chains, increase the added value of products and services, and move towards higher levels in regional and global value chains; innovate production and business models associated with sustainable development goals. At the same time, focus on developing human resources to meet the requirements of technological innovation, production processes that meet the requirements and development trends...