Vietnam’s export to EU market may face more hardships in 2011

Vietnam’s export operations to EU market is expected to meet more difficulties this year, according to Dang Hoang Hai, head of European Market Department, Ministry of Industry and Trade.

Talking with Thoi Bao Kinh Te Saigon Online on March 2, Hai said that although the EU economy has been improved, it has still not reached the stability. In addition, at present, the EU market is also offering technical barriers for imported goods.

Especially, Vietnamese producers are facing hardships on credit due to the government’s tightening monetary policy.

In 2011, it will be very difficult for exporters to the EU market. However, Vietnam’s export growth target to the EU market this year is still at 10 percent, Hai said.

Last year, the country’s export growth target was also 10 percent but the really gained figure was doubled to 20 percent. Hai attributed this rise to the tightening of spending and switching to use cheaper goods of European consumers.

But, this year, the cheap price factor will no longer Vietnam’s own advantages and many other countries will also focus on this factor.

Meanwhile, some firms said that their export operations to the EU market is now growing slightly but it’s hard to regain strong growth as before the economic crisis in 2008.

Additionally, after 2008, EU has been no longer key export market of some enterprises. For example, the EU market is now accounting for only below 35 percent of the total export volume of Truong Thanh wood producer, instead of 65 percent as earlier, while the US market increased from 35 percent to 65 percent of the company’s total export volume.

Vu Dinh Hai, deputy general director of Dong Nai Garment Joint Stock Co (Donagamex) said that his firm’s orders from the EU market this year also increased in both volume and value. But, at present, the EU market is also accounting for 30 percent of the company’s export market structure. Currently, Donagamex together with other garment and textile firms such as Viet Tien and Saigon 3 are eying to the Japanese market.

According to the statistics from European Market Department, in 2010, Vietnam’s export turnover to the European reached $15 billion, rising 20.82 percent year-on-year. Of which, the country’s export turnover to the EU market fetched $11.38 billion, up 21.38 percent y-o-y.

Vietnam’s key export items to the EU market are still footwear, apparel products, and seafood products.

In 2010, Vietnam’s export turnover of footwear to the EU market saw a rise of 14.2 percent, gaining $2.2 billion, apparel products and seafood products at $1.8 billion (rising 17.5 percent y-o-y) and $1.18 billion (up 9.6 percent y-o-y) respectively


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: