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Businesses and customers explore products at the Vietfood & Beverage 2023 international exhibition. |
At the conference, Deputy Minister of Industry and Trade Do Thang Hai stated that the export turnover for the initial eight months of the year reached US$435.23 billion, marking a 13.1 percent decrease compared to the same period last year. Nevertheless, in August, the export turnover surged to $60.92 billion, indicating a 7.9 percent increase compared to the same period.
Based on information from trade counselors in the US and European markets, export businesses are forecasted to persist in grappling with difficulties arising from escalated costs of raw materials, fuel, wages, and logistics in the last four months of the year. Concurrently, subdued consumer demand heightens the risk of substantial declines in export orders.
Mr. Nguyen Anh Duc, Chairman of the Association of Vietnam Retailers and CEO of the Saigon Union of Trading Cooperative (Saigon Co.op), also mentioned that the unit had received requests for price increases from several suppliers, with suggestions to raise prices for various commodity groups by around 25 percent.
In response to export challenges, Ms. Truong Chi Binh, Vice Chairwoman of the Vietnam Association for Supporting Industries, emphasizes the need for assistance from foreign trade missions. In addition, businesses should capitalize on opportunities in both new and traditional markets. According to Mr. Nguyen Chi Sang, Vice Chairman of the Vietnam Association of Mechanical Industry, electronic commerce stands as a crucial lifeline for enterprises in the current context. Nonetheless, the e-commerce platform introduced by the Ministry of Industry and Trade remains underdeveloped, posing a notable setback for domestic businesses.
In an effort to assist exporting enterprises, Mr. Vu Ba Phu, Director General of the Trade Promotion Agency under the Ministry of Industry and Trade, revealed that the ministry has been allocating resources to facilitate companies' participation in trade fairs and facilitate direct trade interactions between domestic businesses and import partners, as well as focus on bolstering the promotion of the national brands.
Furthermore, the Ministry of Industry and Trade highly appreciates businesses taking the initiative to establish connections and offer production capabilities and products. Mr. Vu Ba Phu shared that the Ministry of Industry and Trade was on track to finalize and launch a commercial trading platform within the next six months, aimed at further expanding export channels for enterprises.
Identifying foreign enterprises, export markets, and domestic markets as the three key drivers of economic growth, Deputy Minister Do Thang Hai highlighted that rather than concentrating solely on direct exports, local businesses should explore opportunities for indirect exports by strengthening their role within the global supply chains of foreign companies operating in Vietnam and augmenting the value of indirect exports through foreign distribution networks. More importantly, they must expand the domestic consumer market.
