Plenty of room ahead to boost exports to ASEAN market
VOV.VN - Though there is ample room to boost the export of advantageous Vietnamese products to the ASEAN market, local firms are advised to utilise incentives through free trade agreements (FTAs) and improve products’ competitiveness in order to maintain growth to the market.
Pham The Cuong, trade counselor of Vietnam in Indonesia, revealed that there is great potential for rice exports to the Indonesian market, particularly as the Indonesian side has recently announced plans to continue importing rice for national reserves amid concerns about extreme weather in 2023.
Vietnamese food exporters also see huge opportunities to fully tap into the market, particularly as Indonesia is home to the fourth largest population in the world and the largest economy in Southeast Asia. Indeed, foodstuffs and beverage imports account for 6.5% of their total imports, equivalent to US$16 billion.
Cuong suggested that Vietnamese enterprises strive to export food items such as pho (Vietnamese noodle soup), vermicelli, instant noodles, and frozen dumplings to the Indonesian market moving forward.
Meanwhile, Malaysia imports a large amount of processed farm products as local production is yet to meet people’s demand.
Le Phu Cuong, trade counselor of Vietnam in Malaysia, pointed out that the income of local people in Malaysia has increased remarkably, a factor which is anticipated to boost the demand for imported products such as dairy products, spring rolls, and pho that are Vietnam’s major food export items.
However, experts have advised local exporters to acquire halal certification in order to meet the stringent requirements in terms of food safety and hygiene to gain a firmer foothold in the market.
They have suggested that Vietnamese firms take full advantage of FTAs to ramp up trade promotion activities and deal with trade remedies that fully tap into the ASEAN market moving forward.
Moreover, local firms have also been recommended to develop their product brand as a means of elevating their position within the ASEAN market and to strengthen linkages to further participate in regional value chains, thereby increasing the added value of export products.
ASEAN is the fifth largest economy in the world, that boasts more than 650 million consumers and GDP of approximately US$3 trillion. This is a potential market for Vietnam, a member state of ASEAN, because many of its products are exported to other countries in the bloc. This will help Vietnam continue to improve its efficiency in exploiting the ASEAN market and improve its position in regional production and value chains.
