Recommendations to strengthen vietnam export activities in EU market

TABLE OF CONTENTS TABLE OF CONTENTS .1 INTRODUCTION 12 THEORETICAL FRAMEWORK 13 1.1EXPORTING AND THEORIES OF INTERNATIONAL TRADE l.l.lDefinition of exporting 13 1.1.2Theories of international trade 13 1.2THE VITAL ROLE OF EXPORTING 16 1.2.1To the country .16 1.2.2To the Company .17 1.3METHODS OF PROMOTING EXPORT 18 1.2.1Subsidies 18 1.2.2Export financing .19 1.2.3Special government agencies 19 REAL SITUATION OF VIETNAM’S EXPORTS TO THE EU 20 2.1 ESTABLISHMENT AND DEVELOPMENT OF THE EUROPEAN UNION 20 2.3REAL SITUATION OF SOME MAIN EXPORT ITERMS TO THE EU 2.3.1 Textile fabric goods 25 2.3.2Footwear 26 - - CHAPTER 2: REAL SITUATION OF VIETNAM’S EXPORTS TO THE EU 15 2.3.3Art and handicraft 27 2.2.4Seafood and aquatic products 28 2.4SOME ACHIEVEMENTS AND CHALLENGES OF VIETNAM’S EXPORTS TO THE EU 28 2.4.1Achievements 29 2.4.2Disadvantages 29 RECOMMENDATIONS TO FURTHER PROMOTE VIETNAM 30 EXPORT TO THE EU MARKET 31 3.1RECOMMENDATIONS TO VIETNAM ENTERPRISES 31 3.1.1To select the suitable method to actively penetrate into the distribution channels in EU market 31 3.1.2To reinforce investment activities and perfect management of work to produce goods suitable with EU market .31 3.1.3To set up applying e-commerce in business 32 3.1.4To improve the operating capacity and competitiveness with their rivals to produce the suitable products with EU market .32 3.2RECOMENTDATIONS TO THE GOVERNMENT 33 -2 - 3.2.1To construct and perfect economic and commercial policies to promote export 33 3.2.3To restructure the state-owned enterprises .35 3.2.4To support credits for the export enterprises 35 3.2.5To innovate administrative machinery and import-export mechanics 35 3.2.6Other recommendations 36 CONCLUSION .37 REFERENCES .37 I.Book .37 II.Journal article 38 III.Web document 38 1.3.1 2.1 ESTABLISHMENT AND DEVELOPMENT OF THE EUROPEAN UNION 15 TABLE OF CONTENTS .1 INTRODUCTION 12 THEORETICAL FRAMEWORK 13 1.1EXPORTING AND THEORIES OF INTERNATIONAL TRADE l.l.lDefinition of exporting 13 1.1.2Theories of international trade 13 - 3- CHAPTER 2: REAL SITUATION OF VIETNAM’S EXPORTS TO THE EU 15 1.2THE VITAL ROLE OF EXPORTING 16 1.2.1To the country .16 1.2.2To the Company .17 1.3METHODS OF PROMOTING EXPORT 18 1.2.1Subsidies 18 1.2.2Export financing .19 1.2.3Special government agencies 19 REAL SITUATION OF VIETNAM’S EXPORTS TO THE EU 20 2.1 ESTABLISHMENT AND DEVELOPMENT OF THE EUROPEAN UNION 20 2.3REAL SITUATION OF SOME MAIN EXPORT ITERMS TO THE EU 2.3.1 Textile fabric goods 25 2.3.2Footwear 26 2.3.3Art and handicraft 27 2.2.4Seafood and aquatic products 28 2.4SOME ACHIEVEMENTS AND CHALLENGES OF VIETNAM’S EXPORTS TO THE EU 28 2.4.1Achievements 29 -4 - 2.4.2Disadvantages 29 RECOMMENDATIONS TO FURTHER PROMOTE VIETNAM 30 EXPORT TO THE EU MARKET 31 3.1RECOMMENDATIONS TO VIETNAM ENTERPRISES 31 3.1.1To select the suitable method to actively penetrate into the distribution channels in EU market 31 3.1.2To reinforce investment activities and perfect management of work to produce goods suitable with EU market .31 3.1.3To set up applying e-commerce in business 32 3.1.4To improve the operating capacity and competitiveness with their rivals to produce the suitable products with EU market .32 3.2RECOMENTDATIONS TO THE GOVERNMENT 33 3.2.1To construct and perfect economic and commercial policies to promote export 33 3.2.3To restructure the state-owned enterprises .35 3.2.4To support credits for the export enterprises 35 3.2.5To innovate administrative machinery and import-export mechanics 35 - 5- CHAPTER 2: REAL SITUATION OF VIETNAM’S EXPORTS TO THE EU 15 3.2.6Other recommendations 36 CONCLUSION .37 REFERENCES .37 I.Book .37 II.Journal article 38 III.Web document 38 3.1 3.2.1 To construct and perfect economic and commercial policies to promote -6 - 28 export 3.2.2 To restructure the economy, schedule production operations forward TABLE OF CONTENTS .1 INTRODUCTION 12 THEORETICAL FRAMEWORK 13 1.1EXPORTING AND THEORIES OF INTERNATIONAL TRADE l.l.lDefinition of exporting 13 1.1.2Theories of international trade 13 1.2THE VITAL ROLE OF EXPORTING 16 1.2.1To the country .16 1.2.2To the Company .17 1.3METHODS OF PROMOTING EXPORT 18 1.2.1Subsidies 18 1.2.2Export financing .19 1.2.3Special government agencies 19 REAL SITUATION OF VIETNAM’S EXPORTS TO THE EU 20 2.1 ESTABLISHMENT AND DEVELOPMENT OF THE EUROPEAN UNION 20 2.3REAL SITUATION OF SOME MAIN EXPORT ITERMS TO THE EU 2.3.1 Textile fabric goods 25 2.3.2Footwear 26 2.3.3Art and handicraft 27 - 72.2.4Seafood and aquatic products 28 2.4SOME ACHIEVEMENTS AND CHALLENGES OF VIETNAM’S EXPORTS CHAPTER 2: REAL SITUATION OF VIETNAM’S EXPORTS TO THE EU 15 TO THE EU 28 2.4.1Achievements 29 2.4.2Disadvantages 29 RECOMMENDATIONS TO FURTHER PROMOTE VIETNAM 30 EXPORT TO THE EU MARKET 31 3.1RECOMMENDATIONS TO VIETNAM ENTERPRISES 31 3.1.1To select the suitable method to actively penetrate into the distribution channels in EU market 31 3.1.2To reinforce investment activities and perfect management of work to produce goods suitable with EU market .31 3.1.3To set up applying e-commerce in business 32 3.1.4To improve the operating capacity and competitiveness with their rivals to produce the suitable products with EU market .32 3.2RECOMENTDATIONS TO THE GOVERNMENT .33 3.2.1To construct and perfect economic and commercial policies to promote export 33 3.2.3To restructure the state-owned enterprises .35 3.2.4To support credits for the export enterprises 35 -8 - 3.2.5To innovate administrative machinery and import-export mechanics 35 3.2.6Other recommendations 36 CONCLUSION .37 REFERENCES .37 I.Book .37 II.Journal article 38 III.Web document 38 - 9- LIST OF ABBREVIATIONS EU: European Union CESC: Community of European Steel and Coal EEC: European Economic Community CEEA: Community of European Energy Atomic EC: European Community USD: United States Dollar US: The United States WTO: Word Trade Organization GDP: Gross Domestic Product ISO: International Organization for Standardization - 10 - Like footwear products, Vietnam textile and garment products exported to the EU are mainly processing (nearly by 80%), so the practical benefit is very diminutive In order to push forward export to the EU in the next period, in addition to Vietnam government’s effort to facilitate its textile and garment development, Vietnam garment and textile enterprises are to improve quality and diversify their products to meet the requirements of the world market, so as to effectively compound with products from China and other Asian countries when the EU omits its imposition of import quota limitation 2.3.2 Footwear Vietnam footwear is one of exported products with large export turnover The major footwear importing market remains EU, occupying 74% of total export revenues of Vietnam nationwide for this commodity Vietnam, at present, stands at the second position behind China among the largest exporters to EU market Vietnam - EU export turnover for its footwear products sharply augments since signing bilateral cooperation between the two countries in 1995 According to statistics provided by the Ministry of Trading of Vietnam Vietnam - EU export turnover for this product was 296.4 million US dollars in 1995; 530.0 million US dollars in 1996; 978.4 million US dollars in 1997; 1.031.0 million US dollars in 1998; 1.387.1 million US dollars in 1999; 1.471.7 million US dollars in 2000; 1.587.4 million US dollars in 2001; 1.875.2 million US dollars in 2002; 2.260.5 million US dollars in 2003; million US dollars in 2004 and 3.039.6 million US dollars in 2005 Vietnam exported 200 million pair of footwear of all kinds to EU market, equal to 1.207 million US dollars; then up to 1.560.5 million US dollars by 2002 left gar behind textile garment products, which had been placed in champion exporting position during the period of 1992-1995 Vietnam footwear exported to EU market contains mainly gym shoes, accounting for over 40% of the total footwear export turnover of Vietnam to this market Meanwhile, canvas shoes covers nearly 20%, a stiletto contributes approximately 15%, and sandal, leather shoes share 17% and over 1.5% respectively The largest imported Vietnam footwear market in European Union is Germany (with 25.3%), right followed by England (with 12.0%), France (14.3%), Italy (8.1%), 26 - - Holland (7.9%), Spain (4.6%), Denmark (1.3%), Egypt and Australia, Holland stand at the same position (with 0.8%), Portugal and Luxembourg in turn with 0.2% and 0.1% are ranked at the end line Although Vietnam exported footwear turnover to the EU rapidly increases, our export products are mainly under the form of processing (above 70 % of the total export), and so the real benefit is rather small (around 25-30% of the whole Vietnam export sale) 2.3.3 Art and handicraft The consumption quantity for this product of EU is very large Vietnam art and handicraft products exported to the EU are mainly fine art wooden furniture, potteries, porcelain products and commodities made from rattan and bamboo Recently, the export turnovers of this group to the EU increase rather quickly, to 21.28% per year; however, this equals to 2.8% of Vietnam total export turnover density to the EU despite of our great exportability According to the statistics supplied by Vietnam Import-Export Department under the Ministry of Trade in 2006, we exported the quantity of the art and handicraft goods equaling to USD 19.40 million to the Federal Republic of Germany; USD 7.9 million to Belgium; USD 15.52 million to Holland; USD 17.64 million to England The art and handicraft is a kind of decorative product with requirements for utility; but it is also required for its uniqueness in the design and intuition pattern to meet the EU market’s demands Meanwhile, most of these products are made in establishments in the countryside, so they are very simple Beside the monotonousness, these products have other important weak point that is its poor quality and lack of uniform Because of being poorly treated, a vegetation original material is usually deformed, even moldy or wooden- eaten on the way of shipment when it faces with the climate change and cold weather Dispersal production is a cause making contribution to the lack of uniform of product completion process resulting product quantity in a jumble If we have suitable resolves to the production development, diversification, quantity enhances, and design and pattern improvement, the EU will be a real potential market for the kind of export The EU consumers now prefer using Vietnam art and handicraft products In the -27 - EU block, Germany with 26.4% is the biggest exporting market of Vietnam for the product, accompanied by France (14.7%); Holland (11.6%); England (11.0%); Belgium (10.7%); Italia (7.4%); Spain (6.3%); Sweden (5.0%); Denmark (4.1%); Holland (0.8%); Greece (0.5%); and finally Portugal (0.4%) 2.2.4 Seafood and aquatic products Aquatic product is one of the commodities bringing about highly economical effects to Vietnam during the last period The EU is the second biggest importing market of Vietnam aquatic products The thousands of fishery products are exported by Vietnam to the market every year, mainly including frozen products namely shrimps, fish, and contained fish, cuttlefish, mixed shrimp meat and other aquatic products Thanks to Vietnam aquatic sector’s efforts in improving the product quality, the competitiveness of the products has been up graded and they penetrate deeply into the EU with the increasing quantity The exporting turnover of Vietnam seafood and aquatic products to the EU was 2.408.3 million US dollars in 2004; 2.738.7 million US dollars in 2005 accounting for 5% of the Vietnam total aquatic export turnover The European Union acknowledged Vietnam Aqua-product Quantity and Hygiene Checking Center as a competent agency authorized by EU to survey quality of aqua-products exported to the market At the same time the European Union also put Vietnam seafood into the list of priorities No in which 40 out of 200 foreign enterprises have full condition to export their aqua-product right to the EU without requests for any bilateral agreement with each EU member country The acknowledgement not only ensures stability of Vietnam export to the EU also enhanced the prestige of Vietnam seafood quality in the other markets and strengthened penetrability of this aquatic group The markets to which Vietnam exporting its aquatic products in the EU block are as Belgium (with 29.9%); Italy (17.2%); Holland (15.9%); Germany (15.4%); and England (9.9%); France (5.1%); Spain (4.1%); Sweden (0.8%); Denmark (0.8%); Greece (0.6%); Portugal (0.2%); Australia (0.1%) 2.4 SOME ACHIEVEMENTS AND CHALLENGES OF VIETNAM’S EXPORTS TO THE EU 28 - - Looking at the real situation of Vietnam export to the EU in recent years, it is acknowledged to have the following achievements and challenges: 2.4.1 Achievements Vietnam-EU export turnover of the period of 1990 to 2005 had increased with rather high average growth rate of 33.62% per year Vietnam has made use of its comparative advantages in concentrating on exporting some commodities in strong position to the markets of European countries Vietnam has been focusing on industrial goods, processed tropical agricultural products, textiles, and art and handicraft commodities for its exports to the EU At the same time, it gradually invests in quality improvement of the commodities to produce competitive goods in the EU The exploitation of the EU markets require us to develop material facilities and capacity of some agricultural branches in processing sectors of cashew nuts, fruits and vegetables, coffees The export growth of some agricultural goods such as coffee, cashew nuts, tea, and industrial items as garments, footwear; creates rapid changes in products’ quality, design and model The sectors of textile and garment, footwear, aquaculture make a big contribution to solving unemployment And thanks to industrial export strengthening, the process of economic structure transfer increasingly occurs; especially, there are big changes in industry-agricultural-service structure 2.4.2 Disadvantages - The structure of Vietnam exports to the EU is poor in variety of goods, and only highly emphasis in some kinds of commodities such as textile, footwear, coffee and fishery In term of textile garment, for example, Vietnam textile garment enterprises only focus on producing some easily made and simple products as jackets of two or three layers, dresses, shirts - Most of Vietnam exports to EU are passed though middlemen Vietnam footwear still remains some typical limitations in manufacturing ability, failing to meet requirements of the present-day development Most of the products are manually processed based on in-hand goods sample enclosed with order of foreign clients and heavily depend on imported accessories The biggest barrier 29 - - for seafood exports is now product quality, which does not meet production quality and hygiene standards of EU - The majority of Vietnam exports to the EU must be shipped through mediators, which causes some retrains and inconveniences in their transportation Additionally, the system of producing and processing facilities of Vietnam exports remain backward with small production scale, undeveloped technique- technology-management levels; the application ability of advanced technology is limited and fails to satisfy EU requirements - Because the system of Vietnam laws, policies for its economy and commercial management is not fully made and uninvited, it causes many difficulties for implementation of its commitments with international organizations The competitiveness of Vietnam business is still weak in term of both production and management processes They lack precious experiences in the business world; and are still like fishes out of the water even in the EU market; not know how to grasp opportunities and fully understand business regulations and habits of the European markets Therefore, we are not able to supply big shipments of exports and to fill valuable orders - Furthermore, the advertising and marketing skills of Vietnam enterprises remain many restrictions When they carry out cooperating project with their foreign patters, for example, they not want to actively participate in the good selling and dislike understand customer needs and tastes, which decrease their position and roles in marking decisions of production development cooperation, reducing effectiveness of international business manufacturing activities CHAPTER RECOMMENDATIONS TO FURTHER PROMOTE VIETNAM 30 - - and EXPORT TO THE EU MARKET 3.1 RECOMMENDATIONS TO VIETNAM ENTERPRISES Here are some suggestions for Vietnam enterprises so as to promote exports to the EU, in particular, and to the World market, in general 3.1.1 To select the suitable method to actively penetrate into the distribution channels in EU market There are many modes for Vietnam enterprises to penetrate into the EU such as through-intermediary export, direct export, join venture, direct investment Among these modes, the first is the common way applied by the majority of Vietnam businesses to penetrate into the EU In the forthcoming time, Vietnam enterprises should speed up the direct export activities in EU market; at the same time they should selectively study penetrating methods either join venture or direct investment What so ever the mode is selected, they should carefully research the following factors: market capacity, consuming taste, distribution channels, competitors, and prices, etc 3.1.2 To reinforce investment activities and perfect management of work to produce goods suitable with EU market The suitable kind of good for EU market is one which is diversify and plentiful in term of species, big in quantity, stable in supply; statistics the customer’s consuming tastes and fully meets standards of products: quality, hygiene, safety for users, friendly environment, and labor protection In order to produce this kind of goods, Vietnam enterprises should intensify their investing activities and better their export managing activities for these are two way key factors deciding what and how the products are produced When a business has paid attention to invest capital and advantage technology in his production process, together with a suitable managing system, a high quality export product will be bom and fully meet consumer’s demands, overcome all technical barriers of whatever market even of the most selective ones At present when all exporting enterprises are directing forward EU market, Vietnam enterprises should speed up management systems: ISO 9000 (the quality management system); ISO 1400 (environment control system); and HACCP and HACCP (the analysis and control system for essential foodstuff processing steps) 31 - - 3.1.3 To set up applying e-commerce in business Vietnam enterprises should step up the e-commerce application in business for this brings about big profits for them The enterprises websites are considered information centers, representative offices, and retail-selling agencies in everywhere, at anytime and in all aspects Joining e-commerce firstly is joining Internet, accordingly in order to act well in the field; enterprises should define the suitable steps in using Internet as: - Vietnam enterprises should make preparations to world in an English using environment - Using the Internet services in their operations to exploit information and put their information into the websites and publicize their products on the market In the other hand, they can find out almost the information necessary for their business activities 3.1.4 To improve the operating capacity and competitiveness with their rivals to produce the suitable products with EU market In order to ensure import-export turnover and increase industrial exports of Vietnam to the EU, Vietnam enterprises should systematically carry out strategies to improve the competitiveness with their rivals The following are a few recommendations for the Vietnam enterprises: * Strategy for price: Vietnam enterprises should apply methods of goods price-cutting input cost reduction and middleman expense decrease coming to lower the price of their competitiveness with their redundant workforce, increasing the labor productivity, cutting unnecessary costs, finding out cheap material supplying resources etc, can carry out the price-cutting of goods * Strategy for products: Vietnam enterprises should select the enterprise’s predominating products; to continuously improve the product quality and diversify the products to meet demands developing higher with the passing day; to make choice of the world advanced quality of his products Let’s take seafood products as an example; firstly it must be kept in a goods condition, well processed, closely classified, labeled 32 - - and packaged etc The quality of product is a vital factor for export enterprises, by applying of the market (America, for example, does not import extirpative fishing products, unfriendly environmental products, abuse of children labor force and the disabled) After all, enterprises should carefully consider all; enterprises should carefully consider all suitable methods to improve the quality of products * Service publicizing and marketing strategy: Vietnam enterprises should maintain the open of advertising programs, product expanding campaigns, delivery and consultant service; Well studying on EU market in term of business laws and habits, customers’ psychology; training quick-witted marketing staffs; Giving priority to product advertising and marketing through advanced information networks such as internet network; Forming their own product distribution channels to expand the export activities In addition, Vietnam enterprises should apply the following ones: * Human developing strategy: Vietnam enterprises should improve business qualification, ability and management, skill of their labor force, professional skill of import-export staffs Closely paying steps of the enterprises operation * Strategy for enterprises culture: An enterprise can only stand steady on his legs in the market, if it is real powerful Therefore, building up the culture of enterprises is very important Vietnam enterprises should make a stable salary and employment policies, good connection between members of the enterprises; clearly defining reward an punishment regulations, creating fair competitive environment in the company * Capital strategy Capital is the most urgent and vital need of the state-owned enterprises In order to join the international markets, enterprises, firstly, should build up a feasible business alternative to mobilize loans from the banks or through stock market by mean of issuing shares and bond 3.2 RECOMENTDATIONS TO THE GOVERNMENT 3.2.1 To construct and perfect economic and commercial policies to promote export The Government should have necessary changes and additions to his system of laws on foreign trading, make them suitable to be the international trading customs and 33 - - normal practice as followings: To extend the regulation scopes of these laws to conform with requirements of WTO; To regulate more closely and specifically trading activities and relating ones to appropriate to the market-opening and integrating tendency encouraging export The signed cooperation treaty between Vietnam and EU still vaguely stipulate the goods-trading Thus, Government should have two parties to reach a more specific treaty, which is similar to Vietnam-American Commercial Treaty not only on the goods trading but also on intellectual property, service-trading, and investment And Vietnam should make a consideration of the possibility of signing a general trading agreement with EU including Vietnam entrance into the World Trade Organization 3.2.2 To restructure the economy, schedule production operations forward towards export, fully exploit the advantages to enhance the competitive capacity and reduce the disadvantages Government should restructure the economy; scheduling production operations toward export include reconstruction of the industry, agriculture, and service sectors in the direction of modernization This means that in almost countries with high-leveled economy, the service sector has to make up a big volume (more than 60%); followed by the industry (20%-30%), the agricultural sector (under 10%) of the GDP The structure of Vietnam exports consists of mainly agro-products, aqua-products, and some consumer commodities such as: coffee, rice, peppercorn, cashew nuts, leather footwear, and textiles These products are losing the key advantage of having a cheap labor resource because of the salary increase In the future, Government should make a right orientation of exports goods, changing from exporting the traditional goods to advantage technology ones, potential and identified products in all three sectors of agriculture, industry, and fishery 34 - - 3.2.3 To restructure the state-owned enterprises All the state-owned loss-making enterprises, Government should be dissolved, bankrupted, sold, or rented, for they are not able to keep exist and compete with the other in the integrating context of the world economy For those whom making profits Government should be further encouraged and improved their competitive ability by demolishing the monopoly position of the companies’ No.90, No 91 The right to value goods should be passed and controlled by the state based on variables of the demand and supply relation and strategic products such as cement, petroleum, iron and steel, raw materials, and electricity on both the national and international markets 3.2.4 To support credits for the export enterprises Government should assist export enterprises to get loans with low interest rate, resolve difficulties in floating capital and the one for facility innovation The export credit guarantee facilitates the export enterprises’ penetration in to the EU -the one with strict requirement for imported products and complex distribution channel The real equality in bank credit relation must be legally ensured among participants of the economy (Nowadays, the private-owned small and medium-sized enterprises can not mortgage their land use right for the loans) The enterprises’ ability of approach to sources of credit from the banks and financial institutions should be widely opened Loan-borrowing, asset-mortgaging procedures of the banks and financial institutions should be simplified Government should ratify banks to flexibly lower its discount rate encouraging business to forward their exports to the EU When the discount interest rate is low, the price of exports is also cheaper Accordingly, the competitiveness of Vietnam export goods is increased and exporting activities are widely expanded If implementation of “banking policy” Government will support Vietnam enterprises getting money to invest in their production, raise the quality pf goods, and improve the patterns of goods in order to quickly put up exports to the EU 3.2.5 To innovate administrative machinery and import-export mechanics Government should innovate administrative machinery and import-export mechanism is made in order to simplifying the customs procedure, making it become more convenient and clearer but closer for the importers and exporters As a result, 35 - - Vietnam enterprises will have to seriously ensure the quality and quantity of exports, conform to the regulations for exports, and conform with the regulations for exports to the EU 3.2.6 Other recommendations Government should the research on the possibility of cooperating with Laos, Cambodia, Myanmar and Bangladesh so as to the products of textiles, footwear, and fishery, which are tax-free and not controlled by quota Government should study and full exploitation of special treatments of the GSP system on environment and labor standards ought to be carried out These sensitive one of Vietnam, for Vietnam already has the laws on labor and strict regulations on environmental protection Therefore, Ministries, sectors and programs of commitments to implement environmental and working standards as to be reduced taxation on some kinds of goods by EU market In general, all enterprises, which want to successfully penetrate into the EU market, should fully carry out all the above-mentioned solutions However, for a specific group or sector, it is necessary to have particular alternatives which request each sector, it is necessary to have particular alternatives which characteristics of EU market, of each member in EU block compared with the products of themselves Accordingly, accurate, prompt and strong enough solutions can be drawn out 36 - - CONCLUSION Nowadays, in the tendency of globalization and regionalization, no country can stand apart from the process of trade and investment liberalization From the facts during the past years, Vietnam-EU trade relationship has initially achieved successes These achievements; however, are not proportionate to the potential and wants of each party due to subjective and objective cause of the both parties The expansion of the relationship with EU, at present, especially on the trading sector, is a great opportunities for Vietnam enterprises to exploit potentials of the market Yet, this is the big challenge with Vietnam business that has limitations in terms of advanced technology, technique as well as business experiences on the world market Many enterprises cannot help worrying that whether the “pack of small fishes”, Vietnam enterprises are be wolfed down by the “pack of big one”, the enterprises in the EU block This still depends upon the management and business doing of the enterprises as well as the state support It is a fact that in all countries over the world, the small-sized enterprises and medium-sized ones still exist and cooperate; they both compete with each other and overcome difficulties together to go forward (for example, in case of Taiwan) Vietnam enterprises have the certain growth in term of competition Although there remain many immediate difficulties, with the creativity, activeness and was supported by the systems of legislations, policies, infrastructure, and agencies, Vietnam enterprises are surely strong enough to confront with every challenges; and catch any opportunities coming into successes ; make contributions to bringing our country steadily to go up on the way of industrialization and modernization REFERENCES I Book Foreign Trade University, (2003), Global Marketing - 37 - John J Wild, Kenneth L Wild, Jerry C Y Han, (2001), International Business Kenneth D Weiss (2001), Building an import-Export Business Philip Categora (2002), International Marketing Robert Freischreiber (1998), Export Handbook Accouting Financial and Tax Guide Vietnam Trade Promotion Agency (2001), Xuat Khau sang thi truong Chau Au II Journal article H.Van (2005).Thong tin ve mot so mat hang chu yeu tren the gioi giua thang nam 2005 Foreign Trade Magazine No25, September 2005 Hoang Phuong (2005), Europe’s investors eye Vietnamese market Saigon Times Weekly, June4, 2005 N Dung (2005) Thong tin ve mot so mat hang chu yeu giua thang nam 2005 Foreign Trade Magazine, No3, January 2005 Ngoc Dung (2005) Price Hikes 2004 Revise, Vietnam Business Forum, January 25 - February 21, 2005 Ngoc Long (2005) VCCI Helping Business, Vietnam Economic News, No 15/2005 Nguyen Van Ky (2004), Boost Vietnamese Fruit Export, Saigon Times Weekly, December 25,2004 Thi Van (2005) Enterprise in Vietnam Buckling under Excessive Business Cost Vietnam Business forum, April 5, 2005 Tran Le (2005) Free Trading Food, Vietnam Economic News, No 9/2005 III Web document Internet (2005), Measures to promote export of coffee Vo Thanh Thu, Retrieved on August 28, 2005 from the World Wide Web; http://vnexpress.net Internet (2005) Trao doi truc tuyen ve kinh te A - Au cong tot dep 38 - - Retrieved on August 28, 2005 from the World Wide Web; http://vnexpress.net Internet (2005) Main Product of FONEXIM Retrieved on September 10, 2005 from the World Wide Web: http://fonexim.com.vn Internet, (2005) tinh hình xuat nhap khau nhung nam dau the ky 21 Retrieved on September 10, 2005 from the World Wide Web: http://vnexpress.net 39 - - - 34 35 - [...]... supports Vietnam efforts in ameliorating the prolonged trade balance deficit Vietnam s exports to the EU in 2001 accounted for 19.63% of the country’s total export revenue In addition, Vietnam- EU exports in the EU total import volume are strongly increasing; it increased to 41.86% in 1996; 13.02% in 1997; -4.62% in 1998; -8.00% in 1999; 7.85% in 2000; 7.89% in 2001; 3.93% in 2002; 10.83% in 2003; 6.82% in. .. reducing effectiveness of international business manufacturing activities CHAPTER 3 RECOMMENDATIONS TO FURTHER PROMOTE VIETNAM 30 - - and EXPORT TO THE EU MARKET 3.1 RECOMMENDATIONS TO VIETNAM ENTERPRISES Here are some suggestions for Vietnam enterprises so as to promote exports to the EU, in particular, and to the World market, in general 3.1.1 To select the suitable method to actively penetrate into... distribution channels in EU market There are many modes for Vietnam enterprises to penetrate into the EU such as through-intermediary export, direct export, join venture, direct investment Among these modes, the first is the common way applied by the majority of Vietnam businesses to penetrate into the EU In the forthcoming time, Vietnam enterprises should speed up the direct export activities in EU market; at... considered information centers, representative offices, and retail-selling agencies in everywhere, at anytime and in all aspects Joining e-commerce firstly is joining Internet, accordingly in order to act well in the field; enterprises should define the suitable steps in using Internet as: - Vietnam enterprises should make preparations to world in an English using environment - Using the Internet services in. .. methods to improve the quality of products * Service publicizing and marketing strategy: Vietnam enterprises should maintain the open of advertising programs, product expanding campaigns, delivery and consultant service; Well studying on EU market in term of business laws and habits, customers’ psychology; training quick-witted marketing staffs; Giving priority to product advertising and marketing through... SITUATION OF SOME MAIN EXPORT ITERMS TO THE EU 2.3.1 Textile fabric goods Based on export quota, the EU is the biggest textile fabric importer of Vietnam Vietnam export for this kind of goods to the EU particularly increases rapidly since textile and garment trading treaty signed in 1993 For the period of 1993-1995, Vietnam export to the EU went up to 80%: from 250 to 450 million US dollars; to 765.5 million... trading, make them suitable to be the international trading customs and 33 - - normal practice as followings: To extend the regulation scopes of these laws to conform with requirements of WTO; To regulate more closely and specifically trading activities and relating ones to appropriate to the market- opening and integrating tendency encouraging export The signed cooperation treaty between Vietnam and EU. .. Vietnam footwear is one of exported products with large export turnover The major footwear importing market remains EU, occupying 74% of total export revenues of Vietnam nationwide for this commodity Vietnam, at present, stands at the second position behind China among the largest exporters to EU market Vietnam - EU export turnover for its footwear products sharply augments since signing bilateral cooperation... and export markets EU companies have also invested considerably in Vietnam, bringing stocks of EU FDI to USD 4 billion, which makes the EU the second largest source of FDI into Vietnam * Objectives of the report First, I would like to give out of brief a theoretical framework about exporting and international trade Then, in the next part, I will review and analyses the real situation of Vietnam export. .. banks to flexibly lower its discount rate encouraging business to forward their exports to the EU When the discount interest rate is low, the price of exports is also cheaper Accordingly, the competitiveness of Vietnam export goods is increased and exporting activities are widely expanded If implementation of “banking policy” Government will support Vietnam enterprises getting money to invest in their