Product/Business & Market Intelligence
Vietnam has integrated into the world economy. This creates the opportunity for Vietnamese enterprises integrate more deeply into global value chains. The information increasingly to system of enterprises, markets, products and trade promotion support programmes has made great contributions to boosting and increasing Vietnam's export value.
Vietnam is an emerging economy where enterprises are the most important and decisive sector to economic growth and development.
According to a report of the Business Registration Administration Bureau under the Ministry of Planning and Investment, in September, the country had 9,163 new enterprises with a registered capital of VND84,783 billion, down 21.4 per cent in entity and 21.2 per cent in value against the previous month but up 6.4 per cent in entity and 5.2 per cent in value against the same period of 2017.
By industry, business registrations increased in 10 industries in the first nine months of 2018. Remarkably, the real estate sector saw an increase of 41.6 per cent, followed by healthcare and social assistance activity with a growth of 26.6 per cent. Some sectors however witnessed a year on year decline, featured by arts, leisure and entertainment that slid 12.8 per cent, freight transport by 11.3 per cent, and agriculture, forestry and fishery by 10.0 per cent.
A of Vietnamese majority are small and medium in enterprises size, characterised by many limitations in internal capabilities (lack strategic vision, poor management capacity poor market thinking, low application of science and technology and poor innovation.
In order to encourage business development, the Government is onstantly striving to improve the nvestment and business environment y enhancing the legal framework particularly for private business development. This is considered a key element to growing supporting ndustries - an important link in value chains to enhance the competitiveness of Vietnamese exports.
Recently, instead of focusing on rude export, enterprises have made efforts to invest in exporting branded processed products. This is one of good signals, proving that Vietnam's export products have been improved nd secured their positions on the world export map.
Information system on products and export markets
For exporters, defining market actors and products is also very hecessary. Th is helps them better understand the interplay of those actors and develop appropriate ousiness strategies. Grasping market actors will help them determine what o make, who to make for, and how to ell their products.
At present, Vietnam has trade elations with more than 220 countries and territories in the world. After 1C ears of WTO accession (2007- 2017) he nation's trade value tripled According to the project on enhancing ietnamese export competitiveness to 2020, with an eye to 2030, Vietnam wil aise the quality and added value of it trong exports and the added value a ey agricultural products and aquati products by 20 per cent on averag rom the current value in 2020. It wi lso gradually increase the share c gricultural and aquatic exports to developed economies (such as the European Union, Japan and South Korea) and strive for an average annual export growth of 8 per cent in the 2016- 2020 period.
According to the Ministry of ndustry and Trade, with 57 trade offices and 7 trade office branches in Foreign countries, more than 500 trade promotion activities were launched in 2016 2017. Business support provided by trade offices focused on providing information on import and export management policies of host countries and Vietnam; supported enterprises to conduct market research, contact partners and sign assisted find and verify domestic contracts; enterprises information about target partners and settle trade disputes. Typically, the Vietnam Goods Week Programme was launched at overseas distribution systems, focusing on big foreign distribution systems in Europe, North America, Southeast Asia and Northeast Asia with commercial presence in Vietnam, aimed to assist domestic enterprises to bring products to display and introduce to customers in the Vietnam Goods Week programmes.
In addition, trade promotion offices were set up in other countries to prop up export and import; and closely connect consultant networks, business associations and local enterprises. With these programmes, Vietnamese exporters can better understand domestic and international market information, thus seeking out right strategies, products and business.
Besides, the Vietnamese overseas trade office system has made positive contributions to boost exports particularly peculiar agricultural products to other nations like shrimp, mango and dragon fruit in Australia; processed chicken, red dragon fruit and star apple to Japan; mango, litchi, longan and rambutan to Taiwan; and longan and litchi to Thailand.
In the coming time, Vietnam will continue to export more prioritised commodities and enhance competitiveness of strong agricultural and aquatic products like rice, coffee, rubber, seafood and pepper; manufactured goods; garments and textiles, footwear, wooden furniture; telephones and components; computers, electronic products and components; and competitive exports like inputs for garment, textile and footwear production; plastic products; fertilisers; and chemicals.
In the domestic market, Vietnamese products are also supported indirectly through third- party foreign distribution systems. This is also considered a safe solution, suitable for most domestic enterprises which are incapable of exporting directly.
The national trade promotion programme also actively complemented and implemented support activities for international economic integration, commitments in the trade agreements that Vietnam negotiated and signed to facilitate enterprises to prepare for effective integration into the world and utilisation of such pacts.
What's more, product and exporter branding is conducted with the national branding programme to promote images, products and brands of exporting industries and exported products in highly potential and important markets, select and focus on branding key sectors such as garment and textile, seafood, and fruit and vegetable.
Joining the World Trade Organisation (WTO) and free trade agreements (FTAS) is opening up new market opportunities for Vietnamese businesses. Vietnam has made good use of tariff preferences in FTAS to which the country is a signatory to expand export markets. In the first six months of 2018, Vietna m's exports to the United States climbed by 9.2 per cent, to the European Union by 12.3 per cent, to China by 28 per cent, to South Korea by 31.8 per cent, and to ASEAN by 17.4 per cent. In particular, Vietnam's export growth to some significantly contributed to the overall export growth.
However, nowadays, Vietnamese exporters, especially small and medium ones, are weak at forecasting market supply and demand, and lack of information on export policies and markets. In the coming time, Vietnam should prioritise the enforcement of trade promotion activities; link with foreign distribution potential markets the within systems framework of the national trade promotion enhance programme; operations of foreign trade offices and trade promotion offices to better assist enterprises to study, connect and directly export to foreign distribution systems.
INDOCHINE VINA INTERNATIONAL TRADE PROMOTION Co., Ltd
Address: Pearl Plaza - 561A Dien Bien Phu Street, Ward 25, Binh Thanh District, Ho Chi Minh City, Viet Nam
Hotline: VN speaking +84 28 665 49 208 _ English speaking: +848 22 660 356