The United States - a large market but not easy to "enter"

The United States has been Vietnam’s leading export market for many years, but it is also the market with the most stringent technical barriers and import regulations in the world. Not only that, Vietnamese enterprises are facing major challenges from the US tariff policy. This reality requires enterprises to constantly innovate, improve competitiveness, innovate production and business methods and build strong brands to meet increasingly stringent market standards.

Checking the quality of grapefruit before exporting to the US market at Chanh Thu Fruit Import-Export Corporation.

Potential market

By 2024, two-way trade turnover between Vietnam and the United States will reach over 122 billion USD, of which Vietnam's exports to the United States will reach about 97 billion USD. Vietnam's key products such as textiles, electronics, agricultural products, seafood and wooden furniture are increasingly asserting their position thanks to improved quality, competitive prices and the ability to meet the strict standards of the US market. Conversely, Vietnam is also an important destination for technology products, agricultural products and input materials from the United States, contributing to promoting the global supply chain.

According to Mr. Do Ngoc Hung, Vietnam Trade Counselor in the United States, in recent years, Vietnam has risen and gradually become an important link in the global supply chain; providing important manufactured goods to markets around the world , including the United States. Currently, the United States accounts for 30% of Vietnam's total export turnover and is also Vietnam's largest export market.

Mr. Marc Mealy, Executive Vice President of the US-ASEAN Business Council, informed: “Each year, the total value of global goods exported to the United States is about 4,000 billion USD, including: machinery, equipment, food, pharmaceuticals, clothing, educational equipment, automobiles... The reason is that the consumption of goods and services accounts for 60-70% of the US GDP. That shows that the United States is still a valuable market for global manufacturers and exporters this year and the following years”.

To support Vietnamese enterprises to take advantage of opportunities from the US market, the Vietnam Trade Promotion Agency, the Vietnam Trade Promotion Office in New York, in coordination with the Foreign Market Development Agency, the Vietnam Trade Office in the US and partners such as USABC, Amazon, WayFair... have been implementing many diverse trade promotion activities (including export promotion and import promotion). At the same time, focusing on international fairs, specialized exhibitions and business-to-business (B2B) connection programs in major US cities such as New York, Los Angeles and Chicago.

Recommendations from experts

At the recent Trade Promotion Conference to the US market, Mr. Hoang Minh Chien, Deputy Director of the Trade Promotion Department, Ministry of Industry and Trade , emphasized: “As a bridge between state agencies and the business community, we and other agencies and units under the Ministry of Industry and Trade continue to make efforts to implement activities to support the improvement of export capacity, promote Vietnamese brands to the world, as well as strengthen connections with major partners such as the United States. The Trade Promotion Department is committed to accompanying businesses on the journey to affirm the position of Vietnamese goods on the international trade map. And today's event is an important opportunity to update the latest information about the US market, discuss cooperation opportunities and exchange practical issues that businesses are facing."

To cope with the new tariff challenge from the United States, Mr. Marc Mealy recommended that Vietnam should focus on a number of measures such as boosting the production and marketing of essential products and consumer goods. At the same time, it is necessary to focus on niche or specific market segments, such as organically certified goods that can be sold at higher prices that consumers are willing to pay. In addition, businesses and units need to actively participate in specialized trade fairs and conferences in the United States.

On the other hand, according to Mr. Marc Mealy, Vietnamese enterprises should follow the two most popular methods to be able to export to the United States: through B2B transactions (selling to a US import company for resale to consumers) or B2C transactions (selling directly to US consumers). Especially for the B2B model, enterprises need to meet three main factors: product quality, products meeting international standards; product price, compared with products of similar quality; quantity of products that can be supplied in a certain period of time. Vietnamese enterprises also need to grasp the consumption trends of US consumers. That is how enterprises tell a "story" about the product or "create an experience" for consumers.

According to experts, businesses that want to sell directly to US consumers through these online platforms need to develop three capabilities: creating product descriptions with images and text in English; creating the ability to safely and securely ship products directly to customers in the US; and creating the ability to receive payments directly from customers in the US.

Many opinions say that one of the competitive advantages that Vietnamese enterprises have over other enterprises in ASEAN in the US market is the ability to connect businesses through links with the Vietnamese American community. Vietnamese enterprises also receive support from the Vietnamese Government in the US, through ministries, branches, the Vietnamese embassy and the Vietnamese United Nations delegation in the US. These are advantages that Vietnam needs to continue to maintain to expand and affirm its position in the US market - a key, most important but also challenging export market of Vietnam.

Article and photos: MY THANH

Source: https://baocantho.com.vn/hoa-ky-thi-truong-rong-lon-nhung-khong-de-chen-chan--a188930.html