Brexit to affect Vietnamese firms in future

Britain’s recent exit from the European Union (EU) could more or less affect trade activities between Vietnamese businesses and partners from the UK and EU in the future, experts have commented.

Vice Chairman of the Vietnam Steel Association Nguyen Van Sua said after the UK left the EU, the euro and pound could be devaluated, causing disadvantages for Vietnamese product exports to the union.

Brexit is likely to reduce goods sales and imports into the EU, he said, adding that many sectors having trade relations with the union would be affected such as electronics, garment-textile, footwear and seafood.

As regards the steel sector, Brexit has yet to affect businesses in the near future as key markets are still ASEAN, the Republic of Korea , and China , he said, noting that steel businesses almost gain no access to the EU in terms of both steel imports and exports.

However, in the long run, many businesses are worried that China will move to devaluate the Yuan Renminbi, which will affect their operation. Therefore, enterprises need to proactively increase their competitiveness, improve the quality of products and reduce production costs, he said.

Self-protection measures are merely temporary measures in the current context of fierce competition, he added.

Meanwhile, Chairman of the Hiep Long Fine Furniture Company and Binh Duong Furniture Association, said Brexit could directly or indirectly affect Vietnamese exporters.

Phan Van Hoa from Vinh Hoa science and technology company in central Nghe An province said local businesses have just exported some farm produce to the EU.

Entrepreneurs believe that the EU will not let Brexit affect the common stability, which means that exports to the union will be less affected, he said.

However, businesses are very concerned about the exchange rate fluctuations as the pound is strongly devaluating, he added.

They are studying feedback from EU customers to prepare proper solutions to cope with changes in the export markets, he added.

VNA