Vietnam’s small companies look to the US market
The US is an important export market targeted not only by large Vietnamese corporations but also small enterprises.
The Ministry of Industry and Trade (MOIT) noted that travel restrictions applied all over the globe to stop the spread of the coronavirus have had a negative impact on economic activities and trade.
However, Vietnamese exports to China in H1 brought turnover of $19.5 billion, an increase of 17.4 percent compared with the same period last year, while exports to the US brought $30.3 billion, an increase of 10.3 percent.
According to Nguyen Ngo Vi Tam, general director of Vinh Hoan Seafood JSC, the company’s exports to the US have recovered since July.
Song Hong Garment JSC, which specializes in exporting products to the US, said its clients such as Walmart and Cosco still maintain orders and commitments they made before Covid-19.
|The Ministry of Industry and Trade noted that travel restrictions applied all over the globe to stop the spread of the coronavirus have had a negative impact on economic activities and trade.|
In September 2019, Hoang Gia Group cooperated with Pha Le Plastics Production and Technology set up a joint venture to make stone plastic composite (SPC) for exports to the US.
In June, its SPC factory became operational with the capacity of 8.7 million square meters a year. The first consignments of SPC, meeting GreenGuard Gold standards, have been shipped to the US and will be available in the market in August.
Meanwhile, Nguyen Xuan Phu, chair of Sunhouse Group, revealed that Sunhouse has established two joint ventures with foreign partners that make LED lamps for export to the US.
According to Dinh Viet Anh, chair of Hoang Gia Group, the US, with 330 million people and high spending level, is a market that all businesses lust for, but notes that it has high standards.
Bui Kim Thuy, representative of the US-ASEAN Business Council in Vietnam, confirmed that the US sets strict requirements on imports. However, if enterprises can satisfy the requirements, they will have opportunities to exploit the vast market.
Large American corporations now are gathering strength on developing fields related to technology and energy, so foreign manufacturing fields have many opportunities to penetrate the US market.
Anh said that, in order to export products to the US, Vietnam’s businesses have to ensure a stable supply of goods on a large scale. Even in the current first phase of development, Hoang Gia – Pha Le is required to supply 50 containers a month.
That is why they have to move ahead with the plan to set up a second factory in Hai Phong.
Vietnam’s fruit exporters has been striving to sell to new markets because they understand that reliance on the Chinese market will bring high risks.
Vietnam exported over 182,000 tonnes of pepper worth 385 million USD as of mid-July, according to the General Department of Customs.