Vietnam Industry: Challenges & Opportunities

Vietnam Industry: Challenges & Opportunities

24 May 2022, Mumbai:

The United Nations Climate Change Conference was held in Glasgow, Scotland, in early November 2021.

Vietnam's Prime Minister, Pham Minh Chinh, reaffirmed his commitment to being a member of the global climate change solution.

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The government plans to boost the percentage of renewable energy in its total primary energy supply to at least 20% by 2030 and 30% by 2045, phase out coal-fired power generation, and achieve net-zero emissions by 2050.

Trade can play a crucial role in addressing the climate change that Vietnam is experiencing and will face in the coming years.

Several enterprises and manufacturers have increased their e-commerce exports to capitalize on the channel's recent growth.

Despite their quick adaptation to the new conditions, companies face hurdles such as a lack of understanding of export regulations, rigorous product quality standards in international markets, and other shipping, payment, and customer service issues.

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Vietnam's outstanding foreign trade performance in the first quarter of this year has sparked speculation about whether the Southeast Asian country has been stealing overseas orders from China as a result of sporadic outbreaks of the novel coronavirus on the Chinese mainland, which have hampered economic activity.

For Vietnamese enterprises and manufacturers, all of these challenges have influenced the rate of cross-border e-commerce growth.

According to the Ministry of Industry and Trade, import and export activities will confront both opportunities and problems in the second half of 2021.

Given the unpredictability of the COVID-19 outbreak in Southeast Asia, whether the pandemic is brought under control will be a significant factor driving import and export growth.

These obstacles do not prevent Vietnamese companies from expanding their cross-border e-commerce operations.

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Through e-commerce, Vietnam offers promising export opportunities. According to Amazon's newest report, the number of Vietnamese small and medium-sized firms (SMEs) selling on Amazon climbed by 15% from September 1, 2020, to August 31, 2021.

The ministry has organized trade promotion and supply and demand, connecting activities in Vietnam and other international markets.

One of the fastest-growing garment and textile markets in South East Asia, Vietnam is facing increasing competition from Asia and other markets.

In addition, in 2019, the Ministry of Information and Technology's IDEA signed a cooperative deal with Amazon Global Selling Vietnam.

In the fourth quarter of FY21, Vietnam was able to meet its target of $39 billion in textile and garment exports, a growth of 11.2 percent compared to 2020.

However, this does not indicate growth in market share, says Le Tien Troung, Chairman, Vietnam National Textile and Garment Group.

In 2021, the two want to enhance their relationship to help Vietnamese businesses fully exploit the possibilities of cross-border e-commerce.

In the fourth quarter of FY21, Vietnam was able to meet its target of $39 billion in textile and garment exports, a growth of 11.2 percent compared to 2020. However, this does not indicate growth in market share, says Le Tien Troung, Chairman, Vietnam National Textile and Garment Group.

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