Maintain advantages, exploit new markets
Textiles and garments are currently one of the province's main export products, with the United States accounting for about 50% of the province's total textile and garment export turnover. With the new reciprocal tax policy for all US trading partners, businesses believe that they will face many difficulties in the coming time. However, the textile and garment industry is still striving to overcome difficulties and challenges, continuing to contribute effectively to the development of the province.
A representative of the Binh Duong Textile and Garment Association informed that partners said they still prioritize choosing Vietnamese textile and garment products, because they meet the requirements of capacity, production scale as well as skills to produce high-value goods. The important issue is that businesses need to know how to take advantage of their opportunities and advantages to maintain orders and reorient the export market.
According to Mr. Phan Thanh Duc, General Director of Binh Duong Garment Joint Stock Company, in order to maintain the export market, enterprises need to have an overall view of the internal problems of the industry, thereby urgently resolving the limitations and having appropriate directions in the new situation. “Textile and garment enterprises are currently affected by three main factors: Global purchasing power has not recovered, causing a sharp decrease in consumer demand, high inventories affecting new orders from partners, and long delivery times putting great pressure on the supply chain. In the immediate future, textile and garment enterprises need to diversify markets, promote exports to markets participating in the Free Trade Agreement (FTA) with Vietnam; at the same time, together with customers and partners, share difficulties in resolving orders that are on the way to export and orders that have signed contracts. “With the next orders, enterprises need to negotiate in a way that shares benefits and risks throughout the supply chain from raw material suppliers, manufacturers, distributors to end consumers. In particular, we must do a good job of tracing the origin and making information about the supply of raw materials transparent," said Mr. Phan Thanh Duc.
Mr. Nguyen Quang Vu, Chairman of the Binh Duong Leather and Footwear Association, said that the leather and footwear industry is also affected when the United States changes its tariff policy. To cope with this situation, businesses need to have a flexible strategy, including diversifying export markets, expanding investment cooperation and taking advantage of opportunities from new markets such as the Middle East. “Not putting all your eggs in one basket” is an important solution to avoid trade risks, which means diversifying export markets. In addition to traditional markets such as the United States and Europe, businesses need to maximize the advantages of the FTAs that Vietnam has participated in and that have come into effect, to expand the market and reduce dependence on a few major partners.
Strengthening early warning capacity
A representative of the Binh Duong Electromechanical Association said that they are expecting timely support from the State to create more "support" to overcome difficulties. In particular, expanding opportunities to participate in domestic public investment projects is considered one of the important solutions to help businesses have more consumption markets and reduce dependence on exports. Meanwhile, according to Ms. Le Hai Lieu, Chairwoman of the Board of Directors of Duc Thanh Wood Processing Joint Stock Company, with 34 years of experience in the wood processing industry, the company has built a solid foundation by not betting all on a few markets or a few customers.
“The balanced export structure to key regions such as Asia, Europe, Australia, and the United States has created market diversity and stability, helping businesses not be significantly affected by fluctuations in one export market. When the US market is in trouble, we have another market. When Asia is unstable, Europe is a support. We believe that this diversity and flexibility will help the company overcome challenges and make new strides in the future,” Ms. Le Hai Lieu shared.
Ms. Tran Do Quyen, Deputy Director of the Department of Trade Defense, Ministry of Industry and Trade , emphasized that in the current situation, strengthening the capacity for early warning and proactive response to trade defense cases is extremely urgent for businesses. The Department of Trade Defense has been making efforts to share with businesses about the current trade defense measures being applied in the world, and the practice of investigating trade defense cases against wood, steel and textile products exported from Vietnam. From there, businesses are guided to exploit information and data of the Early Warning System to limit trade defense risks. This is necessary information and data to help businesses in Binh Duong as well as the whole country proactively identify risks and promptly take appropriate response measures.
Dr. Can Van Luc, member of the National Financial and Monetary Policy Advisory Council: Enterprises need to make good use of tax, fee and credit support policies to optimize costs, while grasping the dual transformation trend: Greening and digitalization to build a development strategy in line with ESG requirements (environment, society and governance). Along with that, enterprises need to improve their comprehensive competitiveness, from technology, human resources to risk management and transparency of goods origin. At the same time, enterprises need to make good use of opportunities from new-generation FTAs and upgrading Vietnam's relations with countries such as the United States, Japan, Singapore, etc. |
TIEU MY
Source: https://baobinhduong.vn/mo-loi-cho-xuat-khau-a345985.html
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