Vietnamese firms yet to fully take advantage of ASEAN markets: experts

Despite the COVID-19 pandemic, trade revenue between Vietnam and other ASEAN countries has still been on the rise, but much still needs to be done to fully capitalise on these neighbouring markets.

Vietnamese firms yet to fully take advantage of ASEAN markets: experts

Tien Thuan Garment Co's workers make clothes in its factory in Ninh Thuan Province. Textile products are among many Vietnamese products having great potential for export to ASEAN countries.

Trade between Viet Nam and other ASEAN nations has surged over the past years, from merely US$3.5 billion in 1995, when the country became a member of the bloc, to $42 billion in 2015 and $53.6 billion in 2020. Last year’s figure accounted for 9.8 per cent of Viet Nam’s total trade turnover.

In the first seven months of 2021, in spite of the pandemic’s negative impacts, bilateral trade still went up 38.5 per cent year on year to $40.8 billion. That includes $16.1 billion of Viet Nam’s exports and $24.7 billion of imports, respectively rising 25.9 per cent and 48.2 per cent.

ASEAN is a large market with a combined population of nearly 700 million, a growing middle class, lifestyle and cultural similarities, and geographical proximity among member nations. Given this, Viet Nam still has much room to boost exports to regional countries.

Nguyen Phuc Nam, Deputy Director of the Asia - Africa Market Department at the Ministry of Industry and Trade, told Cong Thuong (Industry) newspaper that there remained numerous good opportunities for Vietnamese goods to enter ASEAN markets.

Indonesia, Thailand, and the Philippines are the biggest importers of Vietnamese goods at present. While Thailand prefers dried fruit and apparel for tourists, the other two have high demand for power generators, water pumps, and telecoms devices from Viet Nam, according to Nam.

ASEAN countries are also major importers of Vietnamese rice.

Many other Vietnamese products also hold great potential for export to these destinations such as items of the processing and manufacturing industry, mobile phones, computers, electronic devices, tea, garments and construction materials.

 

However, experts held that Vietnamese enterprises have yet to take full advantage of the ASEAN market.

Over the last 10 years, the country has continually recorded a trade deficit of $6-7 billion, equivalent to 30 per cent of total export value, with this market.

Data of the General Statistics Office (GSO) show that the deficit stood at around $8.6 billion in the first seven months of 2021, shooting up 123 per cent from the same period last year.

To fuel shipments to this region, a GSO official suggested that Viet Nam should pay more attention to its policies on trade with regional countries while optimising advantages created by the free trade agreements between ASEAN and partners around the world.

It was also necessary to keep improving technology application to enhance the competitiveness of Vietnamese goods, step up trade in services and investment, and promote the country’s competitive edge.

As Viet Nam and some other ASEAN members share a high similarity of the product structure, it should actively engage in the shift of the capital flow within the bloc and cooperate with them to export goods to global markets, the GSO official said.

The Asia - Africa Market Department recommended Vietnamese firms proactively learn about each country’s demand and requirements to have effective approaches. 

Source: VNS

 
 

Other News

.
Domestic petrol prices to reach new highs on global market rally
Domestic petrol prices to reach new highs on global market rally
BUSINESSicon  10/10/2021 

Retail petrol prices in Vietnam are likely to reach new highs when the Ministry of Finance and the Ministry of Industry and Trade announce their price adjustments on October 11.

Media, businesses together overcome impact of Covid-19 pandemic
Media, businesses together overcome impact of Covid-19 pandemic
BUSINESSicon  10/10/2021 

The online forum "The press accompanies businesses to restore production and business, overcome the impact of the pandemic" to mark Vietnam Entrepreneurs' Day on October 13.

Efforts made to protect interests of Vietnamese products in EU market
Efforts made to protect interests of Vietnamese products in EU market
BUSINESSicon  10/10/2021 

Vietnam has taken various measures in a bid to protect the interest of Vietnamese products and exporters in the EU markets, according to the Trade Remedies Authority of Vietnam under the Ministry of Industry and Trade (MoIT).

Local property market expects strong rebound
Local property market expects strong rebound
BUSINESSicon  09/10/2021 

The country’s real estate market has seen positive signs for recovery following the economic reopening, experts said.

'Nike leaves Vietnam': phony news and warnings
'Nike leaves Vietnam': phony news and warnings
FEATUREicon  10/10/2021 

"Nike is leaving Vietnam" has been confirmed as misinformation. Nike does not own any factories in Vietnam, but only hires partners in Vietnam to process its products.

Nine ministries want to return VND8 trillion of public capital
Nine ministries want to return VND8 trillion of public capital
BUSINESSicon  10/10/2021 

Nine ministries have told the Ministry of Finance they want to return a total of VND 8,054 billion of foreign loans that they could not disburse.

Vietnam works towards responsible, sustainable fishery sector
Vietnam works towards responsible, sustainable fishery sector
BUSINESSicon  09/10/2021 

Vietnam’s fishermen, businesses and government have joined hands in implementing fishing regulations, in a bid to have the European Commission (EC)’s illegal, unreported and unregulated (IUU) fishing “yellow card” removed. ​

Resumption of flights to Hanoi, no concentrated quarantine for people with negative Covid tests proposed
Resumption of flights to Hanoi, no concentrated quarantine for people with negative Covid tests proposed
FEATUREicon  09/10/2021 

The Vietnam Aviation Business Association (VABA) has cities and provinces to resume flights to their localities, especially flights to/from Noi Bai, Da Nang and Tan Son Nhat, on October 10.

Which bailout package for the economy will be passed?
Which bailout package for the economy will be passed?
FEATUREicon  09/10/2021 

Minister of Planning and Investment Nguyen Chi Dung has been assigned a difficult task – drafting a program on recovering and developing the economy in association with improving economic autonomy in 2022-2023.

Wind and solar power: race to exploit endless resources
Wind and solar power: race to exploit endless resources
FEATUREicon  08/10/2021 

In the Draft Power Development Planning 8, one of the power source scenarios with the highest scores is the development of power sources associated with renewable energy under Resolution 55 of the Politburo.

Military Bank named among ‘Best Companies to Work for in Asia 2021’
Military Bank named among ‘Best Companies to Work for in Asia 2021’
BUSINESSicon  08/10/2021 

The Military Commercial Joint Stock Bank (MB) on October 8 received the "Best Companies to Work for in Asia 2021" award by HR Asia, a leading HR magazine in Asia.

Vietnam’s steel group in the world’s top 15 for market capitalization
Vietnam’s steel group in the world’s top 15 for market capitalization
BUSINESSicon  08/10/2021 

Hoa Phat Stee Group of billionaire Tran Dinh Long has entered the world's top 15 corporations in terms of market capitalization.

Apparel industry struggles to reach export target this year due to COVID-19
Apparel industry struggles to reach export target this year due to COVID-19
BUSINESSicon  08/10/2021 

The domestic textile and garment industry is likely to not reach its goals in production and business due to the strong impacts of the COVID-19 pandemic, according to the Vietnam Textile and Apparel Association (Vitas).

Economic momentum in 2021 takes a knock
Economic momentum in 2021 takes a knock
BUSINESSicon  08/10/2021 

Prolonged social distancing in many localities have led to lower-than-expected economic growth for the first nine months, but with the accelerated vaccine rollout, the economy is expected to gain growth momentum soon.

VIETNAM BUSINESS NEWS OCTOBER 8
VIETNAM BUSINESS NEWS OCTOBER 8
BUSINESSicon  08/10/2021 

Personal demand for deposits drops sharply

Proposal to resume flights from/to major cities from October 10
Proposal to resume flights from/to major cities from October 10
BUSINESSicon  08/10/2021 

The Vietnam Aviation Business Association (VABA) has proposed centrally-run provinces and cities agree on a plan to resume regular commercial passenger flights, especially those from/to Hanoi, Da Nang and HCM City from October 10.

VIETNAM BUSINESS NEWS OCTOBER 9
VIETNAM BUSINESS NEWS OCTOBER 9
BUSINESSicon  09/10/2021 

Four scenarios for Vietnam’s cloud computing market

Pig farmers incur losses, pork shortage for Tet holiday possible
Pig farmers incur losses, pork shortage for Tet holiday possible
BUSINESSicon  08/10/2021 

With the current low prices, farmers will take a loss of VND2 million when selling a pig. If the prices keep decreasing, farmers will give up farming, resulting in pork shortage for Tet (lunar New Year) sale season.

Nike Group to expand investment in Binh Duong
Nike Group to expand investment in Binh Duong
BUSINESSicon  07/10/2021 

Sportswear giant Nike Group has affirmed that it will continue to expand production in Binh Duong province, said Nguyen Thanh Toan, Director of the Department of Industry and Trade of the southern industrial hub.

Smartphone market narrows, IoT opens up
Smartphone market narrows, IoT opens up
FEATUREicon  08/10/2021 

When VinSmart announced the withdrawal from the smartphone market, Nguyen Tu Quang, CEO of BKAV Corporation, the manufacturer of BPhone, showed his regret.

 
 
 
Leave your comment on an article

OR QUICK LOGIN