US remains top export market for VN

01 Aug 2018  2053 | World Travel News

(Viet Nam News/ANN): The United States has maintained its leading position as Vietnam’s largest export market having spent $21.6 billion on Vietnamese products in the first half of the year, accounting for 19 per cent of the country’s total export value as of July 15.

However, the US has strict standards that require Vietnamese export businesses to improve their capacity and take the initiative to cooperate and build new supply chains.

Tran Quoc Manh, chairman of the Saigon Trade and Production Development Corporation (Sadaco), said the US was home to the highest market mechanism in the world. Its trade remedies such as anti-dumping were being applied strictly so that Vietnamese businesses must grow to promote their products in the market.

“Wooden furniture is one of the five items from Vietnam that have the largest export turnover in the US. Businesses wishing to export to this market must ensure both productivity and quality,” said Manh.

In addition, US orders for furniture are usually large with up to several hundred containers per month. Therefore, Vietnamese enterprises need to expand the scale and automate the production line to ensure the quality and quantity of supply, said Manh.

According to Deputy Minister of Industry and Trade Do Thang Hai, the new changes in the US trade policy would have a major impact on Vietnam’s export of many key products, so it’s not an easy task for Vietnamese businesses to maintain the current export turnover or boost export growth in the US.

Hai said the Ministry of Industry and Trade (MoIT) encouraged Vietnamese enterprises to jointly build up a production and supply chain for export goods to the US market, thereby bringing more added value for Vietnamese goods.

The ministry was ready to assist the businesses in this process, said Hai.

James W Fatheree, acting head of Asia at the US Chamber of Commerce, appreciated the cooperation between Vietnam and the US. He said the US business community was looking at the Vietnamese market due to the country’s population, growth rate and economic reforms.

US businesses highly appreciated the improvements to the business investment environment in Vietnam, where political mechanism reforms and human resources as well as procedural conditions were gradually improving. The changes were a good basis for the two sides to complement and create conditions to increase cooperation.

According to Nguyen Thang Vuong, head of the Department of European and American Markets under the Ministry of Industry and Trade, since the Vietnam-US Bilateral Trade Agreement came into force, two-way trade between the countries had continued to grow highly, up 47 times from $220 million in 1994 to $50.8 billion in 2017.

Vietnam is currently the 12th largest exporter of goods to the US and the 27th largest importer.

Export turnover of the top 10 commodities to the US in 2017 was approximately $34 billion, accounting for over 80 per cent of total export value.

The textile and garment sector continued to lead with $12.28 billion, accounting for 29.51 per cent of total export value to the US. It was followed by footwear with $5.11 billion, phones and components at $3.7 billion, and computers, electronic products and components, wood and wooden products at $3.26 billion.

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