Measures sought to capitalise on European market

Thursday, 2021-05-06 09:08:27
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Flour packaging at a factory of the Binh Dong Flour Company in Ho Chi Minh City. (Photo: VNA)
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NDO/VNA – An online conference was held in Ho Chi Minh City on May 5 to seek measures and strategies to effectively approach and exploit the promising but choosy European market.

Tran Thi Trang, head of the Training Office of the HCM City Center for Trade Promotion and Investment (ITPC) said that Europe is one of the largest trade partners of Vietnam, while Vietnam is the second biggest trade partner of Europe in Southeast Asia.

Despite impacts from the COVID-19 pandemic, trade exchange between the two sides has still been maintained, especially since the EU-Vietnam Free Trade Agreement (EVFTA) took effect, import-export activities have been on the rise and forecast to continue to grow in the future, she said.

Meanwhile, Zachaier, director for supply chain at Source of Asia (SOA), said that Europe is a potential market that is the target of many countries. Vietnam is the one of the important trade partners of Europe with outstanding advantages thanks to the EVFTA. By the end of 2020, four months after the deal took effect, Vietnam's exports to the EU saw positive signs despite impacts from COVID-19.

Vietnam's exports to Europe reached US$42 billion, he noted, adding that the figure has accounted for only 2% of the total import value of the EU, showing that there is large room for Vietnamese goods to penetrate into the market.

He said that European consumers are paying greater attention to sustainability, including the origin trace, social responsibility and environmental protection.

In that context, Vietnamese exporters should assess the sustainability of their products and the regulations in the market, thus designing strategies to adjust the supply chain to suit international standards and rules, he suggested.

Huynh Thanh Trung, Director of LeanWares Company, said that Vietnamese enterprises have seen limitations in high added value stages such as designing, development research and marketing.

He said that Vietnamese businesses should focus on building standardised factories, while controlling the supply chain in an effective manner to meet the demands of the European market.

Do Van Huy, Manager of the Shire Oak International project in Vietnam, said that European consumers care a lot about the environment and climate change, and prioritise products produced with green energy.

Dinh Thi Tuyet Nhung, SOA’s international market development team leader, held that the similarity of successful enterprises such as Vinamilk, Viettel and Kova is focusing on their product quality right from the stage of developing the domestic market. Once winning the home market, they started studying and approaching foreign markets, she said.