Despite regional peers such as Japan, the Republic of Korea, Singapore, and Taiwan suffering from a decline in exporting goods to the United States, Vietnam has successfully maintained robust growth during the first nine months of the year.
According to the General Department of Customs, Vietnam's exports to the US reached US$44.65 billion during the reviewed period, up 27.6 per cent on year. This therefore represents the country’s largest export market, accounting for 22.9 per cent of total turnover.
At present, Vietnam is also benefiting from the effects of the ongoing US-China trade war, with several businesses changing their supply chains as a means of avoiding additional taxation placed on Chinese goods. This has led to several prominent US firms seeking a supply source of goods from alternative markets.
John Caplan, head of North America B2B at Alibaba Group, noted that with the country’s exports to the US growing in recent years, this has created a window of opportunity for local businesses to be proactive and penetrate the market across the Pacific.
Photo: Industry and Trade newspaper
Mary Tarknowka, executive director of AmCham Vietnam HCMC, stated her belief that the US will remain as the main export market for Vietnamese firms in the coming years.
Despite the positive signs of growth, the demanding market also requires exporters to improve their capacity and actively co-operate to build new supply chains in order to sustainably increase exports.
In recent months, Amcham Vietnam has received a lot of requests from US businesses to find sources and suppliers of goods from within the domestic market, noted Ms Tarknowka.
Aside from the need to comply with strict standards regarding food safety and environmental protection, local firms must utilize digital channels as a means of boosting exports.
In this regard, Kuo Zhang, general manager of Alibaba.com, said that hundreds of thousands of enterprises worldwide are now taking advantage of e-commerce channels in order to reach customers, as opposed to using time-consuming and complex traditional channels.
According to Vu Trung Son, director of Vietnam Agarwood Center if businesses are able to overcome challenges and become more familiar with the global trading environment, they will reap the benefits by enjoying greater efficiency and larger profits.