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In global crisis, US remains big export market
While the purchasing power in other markets has decreased as a result of the global economic crisis, the US remains the big export market for Vietnam.
The debt crisis has severely influenced purchasing power throughout the EU, a loyal export market for Vietnam. According to the Ministry of Industry and Trade, the growth rate of exports to the EU increased by only 5.9 percent in the first five months of 2010 over the same period of 2009.
The figures are much higher in other places, particularly the US market with 22.2 percent and the total Asian market, standing at 32.6.
Despite the crisis, the US remains the biggest market with the most potential for Vietnamese enterprises, with an export growth rate of 32.24 percent in the first five months of the year ($6.09 billion). As such, economists believe that Vietnam can meet its goal of exporting $12.4 billion in products to the US in 2010.
Key exports to the US have all enjoyed high growth rate in the first five months. Garment export revenue, for example, was $2.66 billion, climbing 32 percent over last year. Footwear export revenue also enjoyed increases was $621 million (+ 28.25%), wooden furniture $595 million (+ 37.25%) and seafood $325.6 million (+29.77%).
Statistics show that most key export products to the US had +3o percent growth rates over the same period of 2009. As such, exports to the US account for 20 percent of Vietnam’s total export revenue, more than other big markets like ASEAN (17%), EU (16%), Japan (11%) and China (9.5%).
According to the Ministry of Industry and Trade, export growth can thank economic recovery for its success, as well as talks between the American and Vietnamese business communities, which expanded to settle import-export issues.
According to Pham Xuan Hong, General Director of Saigon 3 Garment Company, more and more orders are coming in from the US, while export prices have increased by 10-15 percent. He noted that Chinese producers have pushed export prices up, prompting US importers to shift their orders to Vietnamese producers.
Exports to the US now account for 50 percent of the total export revenue of Saigon 3, which reports export revenue of $17-18 million in the first half of 2010. Hong added that they have even refused some orders due to limited production capability.
The US is also the biggest export market for Sadaco, a wood furniture producer, bringing 50 percent of their total revenue. Sadaco’s General Director Tran Quoc Manh called the situation “very satisfactory” because US importers have placed big orders that can guarantee enough jobs until 2011.
Capability and materials are the most important factors when exporting to the US, according to these export companies. They also believe that once they ‘conquer’ the US market, they will have opportunities to penetrate others.
“If Vietnam can satisfy the strict technical requirements set by the US importers, all difficulties will be settled. I think that, when making products for export to the US, companies need to take care with materials,” Manh explained.
Another difficulty for Vietnamese firms is their limited production capability, which forces them to turn down many big orders. Manh suggested that companies should cooperate with each other as many have already successfully done so.
vietnamnet, Dau tu
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