International delegations from sixty nations travel to Vietnam, seeking local suppliers
In the face of global challenges, Viet Nam is focusing on diversifying export markets and strengthening global trade links. This strategy is evident in the initiatives taken by the government and Vietnamese businesses alike.
According to Tạ Hoàng Linh, Director General of the Department of International Market Development, the key to success in new markets lies in diversification. Linh emphasised the urgent and strategic importance of exploring emerging markets in regions such as the Middle East, Africa, South Asia, and West Asia, alongside established partners like the US, EU, Japan, and South Korea.
The Vietnamese government is supporting this diversification through programmes such as the Vietnam International Sourcing series and the Export Forum. These initiatives have helped hundreds of Vietnamese firms establish thousands of trade connections with global buyers, access raw materials, reduce costs, and enhance product value.
Moreover, Linh highlighted efforts to open export paths to underutilized markets by promoting free trade agreement (FTA) negotiations with countries in Latin America, South Asia, Eastern Europe, and the Middle East. Examples include pushing forward an FTA with the Southern Common Market (Mercosur) through Brazil, and plans to promote FTAs with Gulf Cooperation Council countries, Pakistan, India, Egypt, and others.
The upcoming Vietnam International Sourcing 2025 (VIS 2025), scheduled for September 4-6 in HCM City, will feature over 400 Vietnamese enterprises. Over 300 international sourcing delegations from 60 countries and territories are expected to arrive in Viet Nam this September, offering a prime opportunity for businesses to establish new partnerships.
One such business is the Pagoda Group, one of China's leading fruit retailers, which continues to source fruits from Viet Nam, including durians, coconuts, bananas, dragon fruits, and jackfruits. Pagoda Group plans to cooperate with Vietnamese partners to enter new markets such as the Middle East and East Asia.
The country's efforts to diversify markets are not limited to the export sector. Mirash Basheer, director of May Exports under Lulu Group, the largest retail chain in the Middle East, exports over 300 products, primarily agricultural items like cashews, coffee, rice, and seafood to the Middle East. Basheer's company will participate in the VIS 2025 to source more agricultural products.
The government's initiatives extend beyond trade fairs and FTAs. Specialised conferences held alongside the exhibition will provide businesses with insights into global consumption trends and regulatory changes in export markets.
Viet Nam's strategy of diversification and government support is proving effective. Massimiliano Garzoni, chief operating officer for Asia (Hong Kong) at Giorgio Armani, praises Việt Nam as an increasingly attractive sourcing destination for sustainable fashion. Armani expresses satisfaction with current partnerships but notes that Việt Nam's domestic material production remains limited. Attracting more investment in material production, particularly fabric, would strengthen Việt Nam's supply chain, helping businesses reduce lead times, control quality, and improve profitability.
In conclusion, Viet Nam's key strategies for expanding into new export markets include diversification, proactive government facilitation via trade fairs and export forums, and pursuing new FTAs to tap into emerging and underexploited markets. These strategies help Vietnamese businesses mitigate risks from global disruptions and sustain growth in exports.
- The government's focus on diversifying export markets and strengthening global trade links also extends to the business sector, with Vietnamese enterprises aiming to explore new markets in regions like the Middle East, Africa, South Asia, and West Asia.
- Inflation and conflict can pose challenges to global businesses, but Vietnam's strategy of diversification and government support may help Vietnamese businesses mitigate risks from these disruptions and sustain growth in exports.
- Apart from the export sector, the government's initiatives also involve promoting cultural exchange, such as specialised conferences providing businesses with insights into global consumption trends and regulatory changes in export markets.
- The Vietnamese government is working on free trade agreement (FTA) negotiations with countries in Latin America, South Asia, Eastern Europe, and the Middle East, with examples being the Mercosur FTA and plans to promote FTAs with Gulf Cooperation Council countries, Pakistan, India, Egypt, and others.
- In the fashion industry, Vietnam is becoming an increasingly attractive sourcing destination for sustainable fashion, as evidenced by the praise from Massimiliano Garzoni, chief operating officer for Asia (Hong Kong) at Giorgio Armani, who finds Vietnam's potential in this area promising but notes the need for more investment in material production to strengthen the supply chain.
- Despite the pandemic, travel remains an essential aspect of expanding businesses, and the upcoming Vietnam International Sourcing 2025 (VIS 2025) offers a prime opportunity for businesses to establish new partnerships, with over 300 international sourcing delegations from 60 countries and territories expected to arrive in Vietnam in September.
