Enterprises strive to regain market share in key markets

At the end of the third quarter and the beginning of the fourth quarter of 2023, businesses have strengthened many synchronous solutions, sought to recover quickly, boosted production and export, and regained market share in key markets.  

Orders are back

According to Huynh Quang Thanh, Director of Hiep Long Co., Ltd. (Thuan An City), purchase orders have gradually increased, the quantity reached 80% compared to before, thus this company maintains all workers from now until the end of the year to produces high-quality wooden products for export to the US and EU... "Hiep Long Company has long been doing many different large and small orders, including niche orders, serving the EU market, so up to now we still maintain manufacture. We are trying our best to gradually regain orders and meet the market demand", Thanh informed the good news.

According to Vuong Sieu Tin, Director of Phuoc Du Long Ceramics Company (Tan Uyen City), in this difficult times, ceramic enterprises focus on quality, invest more in designs, and improve production processes according to green, sustainable direction, minimizing energy consumption. This company also focuses on researching and developing new products, consistent with customer trends and consumer tastes during difficult and challenging times. "Even though the economy has many difficulties in 2023 and revenue declines, every time a new, beautiful enamel color product is released, that will another motivation to produce and export”, Tin said about creativity.

Enterprises of garment industry strive to conquer stringent markets.

According to businesses, currently major markets, especially Europe, are "scrutinizing" wooden products from Vietnam more and more closely with new regulations. Therefore, the increased orders mainly fall into the hands of businesses that meet environmental criteria and model diversity. Sharing more about market access trends, Nguyen Minh Nhat, Nhat Nam Company (Ben Cat Town), said: “To get new orders, the company increases the production of household products that are sought after by many people, have reasonable prices and are highly practical, such as dining sets, kitchen utensils, and storage products. These products not only meet the needs of modern lifestyles but also provide a balance of environment, quality and affordability, making it a popular choice for consumers."

According to Huynh Thanh Trung, Trade Promotion Department under Binh Duong Furniture Association (BIFA), along with efforts from businesses to find orders, promotion methods through e-commerce have also had a sharp increase in level and effectiveness.

Meets circular economy requirements

Phan Le Diem Trang, Vice President of Binh Duong Provincial Textile and Apparel Association, said: “Currently, the consumer trend is to choose products that use recycled and compostable materials. This is one of the new demands from the international market that Vietnamese businesses need to adapt to. However, when the requirement for recycled raw materials and accessories is increased, the price of fabric also increases and that is one of the pressures that are facing businesses."

According to Nguyen Thi Hoang Thuy, Vietnam Trade Counselor in Sweden, businesses and export industries are facing many challenges and increasingly high standards of consumers and markets. In Europe, one of Vietnam's main export markets, around the “European Green Deal” there is a package of actions aimed at reducing greenhouse gas emissions and minimizing resource use while still achieving economic growth. Since then, many new regulations have been introduced for goods that want to be imported into this market. EU anti-deforestation regulations will apply from December 30, 2024. Commodities affected by this regulation include cocoa, coffee, rubber, soybeans, wood and other commodities. The carbon adjustment mechanism will impose a carbon tax on goods imported into the EU, pilot applied from October 1, 2023, and fully implemented from 2026 with dozens of items.

Wood industry enterprises strive to meet demands of key export markets. In photo:  Manufacture at Quang Hiep Tien Co., Ltd. in Tan Uyen City. Tan Uyen Town.

Nguyen Thi Hoang Thuy added that for the textile and garment industry, one of Vietnam's key export industries, will be affected first as applying circular economy, because orders will be less while they must improve quality to make products more durable and reduce waste. The European Union is aiming to eliminate the “consume and throw away” culture, eliminate products with “short-life cycles” and the “waste generation” economy. These regulations will directly impact Vietnam's textile and garment exports to the EU.

“Obviously, businesses and export industries are facing many challenges, even trade defense lawsuits will appear more and more. However, that is in the short term, and the increasing demands and standards of consumers will be long-term and irreversible. There is no other way, businesses are having to adapt, because each market has different requirements. Businesses that do not meet green and sustainable standards in Europe can still go to other markets. Of course, the trend will gradually spread, businesses need to prepare to adapt well," Trang said about the long-term roadmap.

Nguyen Quang Vu, Chairman of Provincial Leather Footwear and Handbags Association, said that the leather footwear industry determines that their business community working together is the only way. Individual businesses cannot have enough capital to invest on their own, so they must think about producing in an ecosystem to meet international requirements.

Reported by Tieu My - Translated by Ngoc Huynh