When export faces difficulties as it does now, what businesses need to do is innovate their approach to international buyers. Ta Hoang Linh, director of the Europe - America Market Department (MoIT), believed that in addition to solutions from management agencies and trade offices abroad, businesses need to collaborate with each other, especially small and medium-sized units.
In response to the demand for connecting supply and demand in foreign markets, what should Vietnamese businesses do to meet the requirements of international distributors and retail systems, sir?
In Decision No. 1415/QD-TTg dated November 14, 2022, approving the project "Promoting Vietnamese Enterprises' Direct Participation in Foreign Distribution Networks by 2030," the Prime Minister assigned the MoIT to lead and coordinate with several ministries, sectors, and localities to implement a seven-year program until 2030. This program is the result of five previous years of development that have achieved positive results and received responses from Vietnamese businesses, industry associations, and localities.
Not only in Vietnam but also internationally, foreign retailers and distributors have considered Vietnam a strategic location in their global procurement strategy. Shifting to Vietnam to replace other countries in the supply chain transition creates significant opportunities for our enterprises.
However, the challenge lies in how Vietnamese businesses can meet the requirements of distributors and international retail systems. Based on this reality, we will organize a networking event in September in HCM City, attracting many major global retail corporations such as Walmart, Amazon, Latin American retail corporations, and those from Asia and Africa.
The current need for businesses is information. Therefore, to prepare for this event, numerous advisory activities for businesses will be conducted, providing market information and opportunities. Trade promotion systems in all countries around the world will also participate in advising these businesses.
Currently, some foreign corporations such as Walmart and Uniqlo have entered to procure Vietnam's textile products and collaborated with our businesses to establish their supply chains in the Southeast Asian region. Through these networking events, updated information from trade missions is expected to be shared, guiding businesses in building market access strategies and product development strategies.
What specific breakthroughs have been achieved from the business deals in your enterprise through the dialogue sessions supporting export-oriented businesses in finding outlets, sir?
Through the business support programs, these trade missions have provided guidance on new policies in countries and regions directly impacting businesses. For instance, new policies in the EU and the US will be implemented in the near future. Changes in policies, especially those related to green transitions, will have both negative and positive impacts on Vietnamese businesses. To capitalize on opportunities in this green transition, businesses need to clearly and comprehensively understand policies and standards. This will enable them to take appropriate actions and develop strategies for the future.
Hence, at the Vietnam International Sourcing 2023 event, a series of forums - the Vietnam-US forum, the Vietnam-EU forum, and the Vietnam-Latin America forum - will be organized to update policy situations, address specific questions from businesses, and guide them. In particular, procurers will highlight lingering issues for businesses.
Currently, what is the level of access for Vietnamese businesses to foreign distribution systems, sir?
Many businesses have not fully utilized foreign distribution systems due to certain difficulties in their supply capacity. If small and medium-sized enterprises wish to efficiently supply large retail distribution corporations, collaboration among them is essential. This is also advice from international retail distributors. Collaborating with each other to produce the next product is akin to each business being a "link" in the overall supply chain.
In the process of transitioning to join foreign supply chains, accessing financial resources is a highly important issue for businesses. Therefore, the participation of major financial institutions and banks will be involved to support businesses in accessing funds for upgrading machinery and equipment, factories, and technological innovations. This way, businesses can effectively participate in international supply chains.
Thank you, sir!
Source: VCN
Keywords: Vietnamese goods, foreign distribution system
