Need to grasp opportunities and challenges from major export markets

According to the forecast of the Ministry of Industry and Trade , the European Union (EU) and the United States will continue to be Vietnam's major export markets in 2024 with many opportunities to increase key export items. However, there are also many challenges that businesses and export industries need to know in order to have the right direction.

According to Mr. Tran Ngoc Quan - Vietnam Trade Counselor in Belgium and the European Union (EU), there have been some significant bright spots in the EU market, especially Belgium - forecasting the possibility of increasing exports of many consumer goods to these markets in 2024. Currently, inflation has decreased significantly, people's income has increased sharply again. At the same time, energy prices have gradually stabilized, and the supply chain has gradually been restored.

Economic experts in this region as well as in the world predict that the European Union's economy will have slight growth in 2024 (about 1% in 2024 and stronger growth, about 1.5% in 2025).

This also means that EU trade growth will recover by around 1.7% for imports into the EU and around 1.1% for exports from the EU to other countries - instead of a decline of more than 15% in the bloc's international trade in 2023.

The European Union (EU) and the United States will continue to be Vietnam's major export markets in 2024 (Photo: KT)

Although there are optimistic prospects after more than 2 very difficult years in the European Union market, because people are still not bold enough to shop, price competition in 2024 is considered one of the priorities in this market that Vietnamese export enterprises need to pay attention to and focus on.

Mr. Tran Ngoc Quan - Vietnam Trade Counselor in Belgium and the European Union (EU) said: "In addition to price factors, many import regulations will be implemented in 2024, mainly related to circular economy, sustainable development and green and clean development issues.

Specifically, carbon balancing mechanisms applied directly to export products such as steel, cement, and fertilizer will be applied from June 2024.

Accordingly, the relevant enterprises must declare the relevant EU declarations which are relatively complicated and require a lot of research time.

In 2024, the EU will continue to step up food safety quality checks for all food groups imported into the European Union.

Also this year, the EU plans to introduce regulations on Ecodesign in the textile industry with the requirement to minimize waste problems in the textile sector.

For agricultural products, the “farm to table” program is also expected to introduce regulations against plant waste... All of this shows that regulations on green and clean economy are increasingly applied in the European Union.

Also according to Mr. Tran Ngoc Quan - Vietnam Trade Counselor in Belgium and the European Union (EU), in 2024, the Free Trade Agreement between Vietnam and the European Union (EVFTA) will enter its fourth year of implementation.

The tariff cuts have created a major differentiation opportunity in the European market between Vietnam and its competitors in many Asian countries that are eager to have free trade agreements with the EU.

Therefore, Vietnamese enterprises need to proactively acquire knowledge and improve their understanding of EU standards and regulations to maximize benefits from the EVFTA.

Accordingly, it is necessary to focus on improving management, human resource quality, technological innovation, quickly building and developing brands, as well as establishing long-term business strategies in this market.

There are many technical barriers to exporting goods to major markets, Vietnamese businesses need to research carefully to overcome (Photo: KT)

For the US market - an important trade partner and a major export market of Vietnam, according to forecasts, the US GDP growth will reach 1.7-2% in 2024 - a very positive signal, showing that the US economy is on the path of recovery, creating opportunities to restore growth for many of Vietnam's key export products in the coming time, such as textiles, footwear, electronic components, seafood, etc.

However, according to Mr. Do Ngoc Hung - Vietnam Trade Counselor, Head of the Vietnam Trade Office in the United States, because Vietnam is the third largest exporter to the US market (after China and Mexico), finding ways to reduce imports to protect domestic US manufacturing industries will also have a significant impact on Vietnam's export activities to this market. Currently, the Vietnam Trade Office in the host country is implementing many measures to support businesses.

“Strengthen connections through online platforms to promote the role of the Trade Office in the area, while promptly protecting the legitimate rights and interests of Vietnamese enterprises.

Recently, there have been reviews of honey products as well as reviews of tariffs on frozen fish fillets.

"A lawsuit will soon be filed against Vietnam's paper beer exports - showing a signal that although the US market is a very large market, there is currently increasing interest in export industries that compete with domestic US producers, including niche products and those with low export turnover," said Mr. Do Ngoc Hung.

Appreciating the role of counsellors and trade offices in countries in promoting trade of goods into markets including the EU and the United States, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan requested these agencies to quickly grasp and promptly inform state management agencies and the business community about new standards and laws from international markets, especially closely following the trends of 2024 in the markets.

“We are currently working on market connectivity at the national level. Now, we are seeing the beginning of connectivity in regions of the host country, and also at the state level, with elements specific to each region.

I also suggest that the counselors pay more attention to have more such information; immediately analyze the technical barriers that countries have set. If we do not grasp the barriers and cannot overcome them, we will immediately lose the battle" - Deputy Minister Nguyen Sinh Nhat Tan said.

To take advantage of opportunities and develop sustainable exports in major markets such as the EU and the United States, representatives of the Ministry of Industry and Trade recommend that businesses promote diversification of product lines and export markets.

At the same time, proactively improve technology to produce goods with high added value, deep processing content, meeting green economy and circular economy standards, improving labor productivity, and actively participating in the global supply chain.

According to Nguyen Long/VOV

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