Appropriate strategies needed to help local businesses join global supply chains: experts
Appropriate strategies needed to help local businesses join global supply chains: experts
Imports and exports continue to be a bright spot for Viet Nam despite facing numerous difficulties. According to experts, Vietnamese enterprises can penetrate the global supply chains with good strategies.
Tran Phu Lu, Deputy Director of the Investment and Trade Promotion Centre of HCM City (ITPC), said Viet Nam's economy experienced impressive growth in 2022. In addition to a faster-than-expected recovery in the fields of manufacturing, services and domestic consumption, he said exports were a main driving force.
The import-export turnover of goods in the first ten months of 2022 reached US$616 billion, up 14 per cent over the same period in 2021. The export value was $312 billion, up 15.9 per cent year-on-year.
He cited HCM City as an example, attributing the city's growth rate of more than 9 per cent to the significant contribution of import and export activities.
The total export turnover of goods by enterprises through HCM City ports, including crude oil, in the ten months of 2022 hit nearly $36 million, up 10.1 per cent over the same period in 2021. Commodity groups that have enjoyed robust year-on-year growth are textile and garment, up 42.7 per cent; machinery, tools and spare parts, 33.5 per cent; and seafood products, 69.7 per cent.
China remained the largest export market for HCM City enterprises, with a 10-month export turnover reaching $8.2 trillion, up 7.3 per cent year-on-year. It was followed by the US and Japan, with $6.3 trillion and $2.4 trillion, respectively.
Mizushima Kozo, Chairman of the Japan Business Association in HCM City, said that compared to other Southeast Asian countries, Viet Nam's economic recovery speed is extremely impressive.
A survey by the association showed 63 per cent of Japanese enterprises said they would continue investing in operation expansion in the next 1-2 years, reflecting that investors have great expectations for Viet Nam's economic growth.
According to Lu, difficulties facing the world economy and global trade are forecast to remain in early 2023, and Viet Nam's export growth will depend on the inflation situation as well as pandemic prevention and control measures in large export markets. However, he said, it also provides an opportunity for enterprises to overcome challenges and maintain export growth.
Export enterprises can take advantage of tariff reductions under free trade agreements (FTAs) that Viet Nam has signed, especially new-generation FTAs such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and European Union-Viet Nam Free Trade Agreement (EVFTA), he said.
As Vietnamese goods have shown their quality and prestige, and the structure of exports has also undergone a strong shift from exporting raw materials to processed products with high added value, enterprises should seize this opportunity to expand export markets and increase their export turnover, Lu said.
Talking about Viet Nam's export potential, Alex Tatsis, Economic Section Chief at the US Consulate General in HCM City, said that Viet Nam is the 10th largest trading partner of the US globally and a vital link in the supply chain of essential goods to the US economy.
US supply chain links with Viet Nam are not one-way, he said, saying that Viet Nam imports computer chips, hardwoods, cotton, and animal feed from the US to use as raw materials for producing semiconductors, furniture, apparel and domestic seafood.
Two-way trade enables Viet Nam to develop its domestic economy and exports to global markets. He said that the US had paid attention to investment to help Viet Nam strengthen its role in the global supply chain in the long term.
The US enhances trade facilitation and the competitiveness of the private sector in Viet Nam, helping small and medium-sized enterprises to improve their production capacity, access financial resources, and embark on digital transformation, Tatsis said, adding that this enables them better participate in the global supply chain for the mutual benefits of the two countries.
