“ENHANCING VIETNAMESE VALUE FOR VIETNAMESE PRODUCTS” IN THE INTERNATIONAL COMPETITIVE ENVIRONMENT

On the morning of October 11, 2019, at the auditorium of Lao Dong Newspaper, a talk show themed “Enhancing Vietnamese Value for Vietnamese Products” was held. The event was organized by Nguoi Lao Dong Newspaper on the occasion of the 15th anniversary of Vietnamese Entrepreneurs’ Day (October 13).

The talk show was attended by the following guests and speakers:

• Dr. Nguyen Ngoc Hoa, Deputy Director of the Ho Chi Minh City Department of Industry and Trade;
• Mr. Vu Quang Chinh, Chief Executive Officer of Hung Hau Development Corporation (HungHau Holdings);
• Ms. Duong Tu Uyen Thao, Director of Sales and Export, Duy Tan Plastics Manufacturing Co., Ltd.

According to data from the Ministry of Industry and Trade, Vietnam’s merchandise export turnover in the first nine months of 2019 reached USD 194.3 billion, up 8.2% compared to the same period of the previous year; imports were estimated at USD 188.42 billion, an increase of 8.9% year on year. As a result, the merchandise trade balance for the first nine months was estimated to record a trade surplus of USD 5.9 billion. For the whole year of 2019, the Ministry of Industry and Trade set a target of approximately USD 258 billion in export turnover, representing an 8% increase compared to 2018.

In the face of objective impacts from the global economic situation most notably the U.S.–China trade war Vietnam’s exports have inevitably been affected. Citing data from the Ministry of Industry and Trade, Dr. Nguyen Ngoc Hoa, Deputy Director of the Ho Chi Minh City Department of Industry and Trade, expressed confidence that Vietnam would achieve its targeted export–import turnover for the year. He noted that the strong export performance recorded in the first nine months was attributable to Vietnamese enterprises’ effective market entry strategies, their understanding of different market characteristics, and appropriate product positioning strategies. In addition, domestic GDP growth over the past nine months was also very positive. However, Dr. Hoa emphasized that Vietnamese enterprises must proactively prepare response plans, as China imports large volumes of Vietnam’s agricultural, seafood, and consumer goods. Recently, this market has tightened import standards, requiring enterprises to adapt quickly and upgrade product quality to meet export requirements.

Optimistic about export results to the U.S. and European markets in the first nine months of the year and confident that business performance in Q4 2019 would achieve high revenue targets, Mr. Vu Quang Chinh, Chief Executive Officer of Hung Hau Development Corporation (HungHau Holdings), acknowledged that part of the success stemmed from benefits arising from the U.S.–China trade war. Many companies investing in the U.S. and China have shifted operations to developing countries, including Vietnam. As a diversified private enterprise operating in agriculture, education, distribution, food, and consumer goods manufacturing, HungHau Holdings places strong emphasis on enhancing management capacity and improving input materials in order to increase Vietnamese value in its products, while also diversifying markets to reduce dependence on the U.S.–China trade conflict.

Drawing from the company’s own production and business practices, Mr. Vu Quang Chinh stated that in recent years, HungHau Holdings has consistently focused on human resource development, invested in the most advanced technologies to innovate production, and kept pace with changing consumer trends to meet rapidly evolving market demands. “We continuously cultivate and ignite the Vietnamese spirit in every product we make. To expand into international markets and compete effectively earning the trust of consumers worldwideenterprises must constantly improve themselves to meet both domestic standards and the stringent requirements of demanding markets.” Ultimately, enhancing Vietnamese value in Vietnamese products depends on enterprises’ investment efforts, the support and partnership of government agencies, and consumers’ support for domestic products. Equally important is the unity and collaboration among domestic enterprises to strengthen collective competitiveness against global rivals.

It is reported that, continuing the campaign “Vietnamese People Prioritize Using Vietnamese Products,” Ho Chi Minh City is implementing the program “Empowering Vietnamese Products.” Accordingly, the city will collaborate with localities to reassess the supply and demand structure, aiming to establish new product standards. For example, agricultural and food products serving the HCMC market must be produced according to VietGAP standards, with origins easily traceable for consumers; they must have proper packaging and labeling, and efforts should focus on brand building. The Department of Industry and Trade not only launches the movement but will also visit each locality to survey and connect certified products with HCMC’s distribution systems, giving priority and support to products to strengthen their position in the domestic market. This, in turn, empowers Vietnamese goods to reach further, taking advantage of opportunities from free trade agreements such as EVFTA. In addition, besides committing to accompany enterprises in technology innovation and sustainable development, the Department also facilitates enterprises in achieving national brand recognition as well as helping other brands enter the city’s distribution channels.