Big opportunities for Vietnamese businesses in USA, Chile
Big opportunities for Vietnamese businesses in USA, Chile
Vietnam is making hectic preparations to boost exports to the US market, its biggest trade partner, and to Chile, which is considered the entrance gate to Latin America.
Vo Ta Luong, a senior official of the Ministry of Industry and Trade (MOIT), has urged businesses and relevant agencies to “clear the way” for Vietnamese exports to the two markets, especially when great opportunities have come
The “great opportunities” means the Trans Pacific Strategic Partnership (TPP)-- which is believed to be signed by its 12 member countries early the next year, and the FTA (free trade agreement) which takes effects on January 1, 2014.
Luong said the trade relations between Vietnam and the US, and Vietnam and Chile have been developing strongly over the last few years, especially in 2013.
In the first 10 months of 2013 alone, Vietnam’s export turnover to the US reached $19.5 billion, increasing by 18.9 percent in comparison with 2012, while the export turnover to Chile reached $177 million, increasing by 39 percent – the very high growth rates in the context of the global economic difficulties.
According to Vu Duy Khien, Director of the MOIT’s American Market Department, Vietnam’s exports to the US (garments, footwear, wooden furniture, electronics and seafood) account for 0.88 percent of the US’ total imports, worth over $20 billion. Meanwhile, the US export turnover to Vietnam is worth $4.6 billion.
Khien said that the US is a big importer with the high population and high income (the GDP per capita is $47,000). Therefore, Vietnam has every reason to hope to boost exports to the US, which is striving to diversify the supply sources and has a Vietnamese community with 1.5 million people.
The TPP, to be signed early the next year, is believed to give Vietnam more great advantages over its rivals in the US, thus allowing Vietnam to increase its export turnover to the market.
As for Chile, according to Nguyen Thanh Quang, Vietnamese trade counselor in Chile, seafood, farm produce, food, cement, leather shoes, garments, electronics, handicrafts and tires exporters can seek opportunities and succeed in Chile.
However, experts have warned that despite the great trade advantages, Vietnamese businesses would find it difficult to penetrate the markets because they don’t have strong brand names.
Vietnamese businesses would have to compete fiercely with the other “big rivals” which also try to export to the US, such as China and Canada. If Vietnamese businesses cannot improve their productivity and get ready to fulfill big orders, the high transportation fees due to the long distance would be unbearable to them.
As for Chile, Khien said the Vietnam – Chile FTA will take effects on January 1, 2014, under which Chile commits to cut the tariffs of 92.62 percent of Vietnam’s export turnover to Chile in 2007 within 10 years. Meanwhile, Vietnam has committed to cut 87.8 percent of tax categories, equal to 91.22 percent of the import turnover from Chile in 2007 within 15 years.
vietnamnet
