They include runaway inflation, high unemployment rates, low GDP growth and devaluation of the euro that has resulted in low income sources.
|ASG trade centre in Warszawa
No doubt, this is a risk factor for Vietnamese businesses operating there, said Dr. Le Xuan Nghia, Deputy Head of the National Financial Supervisory Committee.
Nghia’s view was shared by Hoang Manh Hue, Chairman of the Union of Vietnamese Businesses Associations in Europe, who said that Vietnamese traders should sharpen their competitive edge against their rivals, including those from China.
He suggested they should pay more attention to market trends in their countries of residence.
Hue said most Vietnamese traders in Poland, for example, are involved in garment, handicraft, restaurant, and food business. The devaluation of the Zloty (PLN) against the US dollar and other currencies circulating in Europe is making it difficult for them to generate profits as they rely heavily on wholesale business.
Hue stressed the need to develop a retail distribution network, which can secure a firm foothold in the long run.
At the 6th Vietnam Business Forum in Europe held recently in Prague, participants agreed that Vietnamese traders have not yet paid adequate attention to developing retail business and dealing with unhealthy competition and dumping activities in provinces and small towns where Chinese traders are holding sway.
Hue suggested as most of them seem to be in the same fix they should cooperate in finding a suitable model of operation.
He said despite their competitive advantage of two-decade operation in Europe they have not yet kept pace with rapid changes in the political, social and economic fields.
He urged them to learn more from successful partners in Western Europe.