Businesses pivot to neighbouring markets due to logistics convenience: Experts
WVR/VNA - Some Vietnamese businesses have shifted their focus to penetrate neighbouring markets due to logistics convenience and concerns about shipping tensions elsewhere.
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| Businesses pivot to neighbouring markets due to logistics convenience: Khanh Hoa Salanganes Nest Company's production line of export products meeting Halal for Islamic countries and food safety standards, including Malaysia. (Photo: VNA) |
Company exporting to the US and European markets have been impacted by tensions in the Red Sea, which have forced shipping lines to divert their routes to ensure safety.
With many national businesses having sufficient export orders until the end of the third quarter, they are negotiating additional orders for the fourth quarter and looking to other markets.
Ameii Vietnam Joint Stock Company's traditional markets include the EU, the US, China and Northeast Asia countries. However, the company has recently shifted to seek for orders from other potential markets, aiming for a 50% increase in revenues over 2024.
Meanwhile, Pham Quang Anh, CEO of Dony Textile Company, said that it was now a low season in terms of traditional markets.
Therefore, the company considered expanding into the Cambodia market for easy delivery, a new market for them, but potentially with many orders.
Quang Anh said the company's sales were expected to increase by 15% this year.
Duong Thi Thuy, Business Director at Huu Nghi Food Company, said China was an important export market, contributing 30% of the total revenues of the company.
Therefore, the company's goal in 2024 was to continue to maintain export growth of over 130% and expand to other provinces and cities in China.
Nguyen Van Thu, Chairman of GC Food Joint Stock Company, said that since the beginning of the year, exports to main markets had increased by 50%. In addition, his company would expand to neighbouring markets such as China, India, Indonesia and Malaysia.
At present, the company had suspended exports to the Middle East market and shifted to more favourable markets such as China and Japan.
According to Dang Phuc Nguyen, General Secretary of Vietnam Vegetable Association, China, Thailand, the Republic of Korea and Japan are Vietnam's major vegetable export markets and account for 98% of their total turnover.
These markets have many advantages for Vietnamese vegetables such as being close, so being convenient in terms of logistics, meaning faster shipping times and lower and safer transportation costs.
According to the Trade Office of Vietnam in Malaysia, Vietnamese companies still have room to improve export growth and the country has a high purchasing power, a diversified demand, along with a similar consumer culture to Vietnam.
Moreover, Vietnam and Malaysia are trying to target a bilateral trade turnover of 25 billion USD by 2030, so there are opportunities to be seized.
To access further into the Malaysian market, Vietnamese export products need to meet Malaysia's quality, food safety and hygiene standards, especially the standards of Halal certification.
Enterprises need to strengthen trade promotion activities to bring products to Malaysia via specialised fairs in this market.
The trade office has also noted that domestic export enterprises should update more market information of Malaysia in particular and the Muslim countries in general. Then, they plan market expansion to those countries by finding local investment and business partners.
According to trade experts, the neighbouring markets are key export targets which can reduce dependence on traditional markets and are there to be exploited.
(Source: WVR/VNA
