Enterprises advised to focus on deep processing to enter Asian and African markets

June 25, 2024 - 08:55
Deep processing could also help domestic firms improve their export turnovers and keep up with market trends.
A farmer at his longan farm in Hưng Yên Province. Vietnamese longan is favoured by customers in Asian markets. — VNA/VNS Photo Văn Nhiều

HÀ NỘI — Vietnamese businesses should continue to invest in deep processing to effectively penetrate Asian and African markets amid the rising trend to use deeply processed products in these outlets, the Asia-Africa Market Department under the Ministry of Industry and Trade (MoIT) has said.

Deep processing could also help domestic firms improve their export turnovers and keep up with market trends, the department said.

The department has also suggested localities continue to build brand names for their products, while developing a list of enterprises producing and trading agricultural products and fruits that are capable of exporting to Asian and African markets.

It said that these lists should be sent to the MoIT so that the ministry could facilitate the connection between local firms and foreign importers.

For the traditional Chinese market, localities should consider coordinating with relevant ministries, departments, associations and reputable firms to organise annual trade promotions with a special focus on potential provinces and cities in China such as Beijing, Hebei, Hunan, Shandong and Sichuan.

The department also advised local enterprises to cooperate with foreign businesses such as those in China, Japan, South Korea, Australia and ASEAN in product packaging, as product design is among the top concerns of consumers in these markets, in addition to product quality.

Over the past years, Việt Nam's trade activities with Asian and African countries have shown a significant diversification. Besides traditional markets such as ASEAN, South Korea, Japan and China, Vietnamese exporters have concentrated on seeking new and niche outlets.

The department said Asian and African markets have high demands for products that Việt Nam is strong in, such as farming produce, fruits and vegetables and seafood like shrimp, tra fish and crab.

In the past four months, Việt Nam's rice exports to Asian and African nations hit US$1.8 billion, marking a sharp increase of 34 per cent year-on-year.

Notably, the Philippines was Việt Nam's largest rice importer in the period, accounting for 46.4 per cent of the total volume and 45.5 per cent of the country's total rice export turnover.

Over the four months, the Asian and African outlets imported $1.5 billion worth of seafood from Việt Nam, with China and Japan being the two largest import markets.

Many countries in Asia and Africa are the major importers of key products such as computer components, phones and parts, textiles and garments and wood and wood products, according to the department.

Last year, Việt Nam’s merchandise trade with Asian and African nations reached $458 billion, down 6.7 per cent year-on-year. Of this figure Vietnamese exports topped $183 billion, accounting for over 51 per cent of the country's total export value.

Among items that posted a positive turnover were transport vehicles and spare parts with $6.5 billion, up 23 per cent, electronic products and components ($28.3 billion, up 6.4 per cent), footwear ($5.1 billion, up 3 per cent), rice ($3.8 billion, up 38 per cent), fruits and vegetables ($4.4 billion, up 86 per cent), cashew nuts ($1.7 billion, up 26 per cent) and coffee ($1.2 billion, up 19 per cent). — VNS