Businesses diversify markets to limit risks

International Furniture Fair to be held in Ho Chi Minh City in 2025. Photo: V.The

For their part, to adapt, businesses must proactively diversify markets, take advantage of advantages, while reducing risks and increasing product competitiveness.

Efforts to diversify markets

Kim Vinh Phu Company Limited (in Bien Hoa City) is a wood industry enterprise with 18 years of operation. This enterprise applies modern technology to the production of wooden furniture for export to important markets such as Europe, America, and Japan.

Company Director Nguyen Phu Vinh said that the wood industry is facing many challenges. First of all, it is meeting the strict standards of demanding markets, especially Europe; in addition, the tax policy on imported goods from the US is making many businesses worried. For sustainable development, Kim Vinh Phu aims to expand cooperation to improve competitiveness and meet the highest quality standards for export markets. At the same time, the company is exploiting the Japanese market because it has a lot of potential.

Reducing tariffs on imported goods and increasing Vietnam's output and purchase value of American goods are considered solutions to balance trade between the two sides.

Thien Long Group Corporation with the Thien Long ballpoint pen brand has cooperated with American enterprises to export to 67 countries, the export sector contributes 20% of the company's revenue. In order to achieve the development goal, in addition to expanding the product portfolio, the company also expands the market to countries in the region. The company aims to be in the top 5 of the pen and stationery industry in Southeast Asia.

According to Mr. Ngo Ngoc Tu, Head of Production Department of Thien Long Long Thanh Company Limited (in Long Thanh Industrial Park, part of Thien Long Group), the company produces about 739 million products/year. The company is in peak season so it should recruit more workers to increase capacity, for domestic consumption and export expansion.

Expanding the market is also what Mr. Tran Quy, Director of Nhat Nam Mechanical Company Limited (in Bien Hoa city), is trying to do. In addition to exporting products to the US and Japan, the company is looking for more domestic customers to boost product supply.

Calculate the increase in US product imports

Along with expanding the market, to balance foreign trade with the US, Vietnam is looking to import more goods and products from this country. At the state level, negotiations between the two countries will be quickly implemented.

The business community must also actively prepare and mobilize themselves. In the field of livestock, according to Chairman of Dong Nai Livestock Association Nguyen Tri Cong, the unit has sent a document to the Government proposing a solution to import agricultural products from the US. Currently, the US is a country that supplies a large output of agricultural inputs such as soybeans, soybean meal, corn, and various types of breeding animals... with a value of billions of USD each year, so importing goods for the livestock industry is also a solution to balance trade. In particular, the State needs to create conditions for banks to guarantee the GSM-102 Program (GSM-102 Export Credit Support Program implemented by the US Department of Agriculture) with an interest rate of 1-1.5% to reduce the burden on importing enterprises.

Similarly, the Dong Nai Wood and Handicraft Association had a meeting and worked with the Department of Foreign Agricultural Affairs (US Department of Agriculture) and the US Softwood Lumber Association (SEC) on cooperation opportunities in importing softwood into Vietnam. The parties discussed cooperation potential, policies to support businesses, and solutions to ensure a stable and quality supply for the wood processing industry in Vietnam.

Vice President and General Secretary of the Dong Nai Wood and Handicraft Association Pham Van Sinh shared that diversifying the supply of legal wood materials is very important for Vietnam's wood manufacturing industry. In particular, the US is considering raising tariffs on imported goods from Vietnam, increasing raw material imports and transparency of product origin will create advantages for Vietnamese products, avoiding the risk of high tariffs.

Van Gia

Source: https://baodongnai.com.vn/kinh-te/202505/doanh-nghiep-da-dang-hoa-thi-truong-de-han-che-rui-ro-48f324a/