Financial policies solutions to promote vietnams coffee export to the US market

INTRODUCTION Research motive Today’s coffee business has occupied a very important position worldwide For Vietnam, coffee is the main export agricultural product after rice Every year, coffee exports bring the economy a large amount of foreign currency, and solve hundreds of thousands of jobs for domestic workers In the trend of opening the world economic integration today, in the light of the Party's and the State's policies of opening the door to integrate into the world economy, the market of general goods and Vietnam's coffee are constantly expanding Including the US market, this is one of the biggest customers of Vietnamese coffee However, it should be noted that the market share of Vietnam's exported coffee in the US market is very small and the prestige and position of Vietnamese coffee in this market is not high While Vietnam has a great coffee production capacity, we have a climate and soil that is very suitable for growing coffee On the other hand, Vietnam and the United States have signed bilateral trade agreements, but the volume and export turnover of Vietnam to the US market in recent years have grown slowly and unstable Although the whole industry, coffee businesses and the Government have had many solutions and policies to support, promote coffee production, processing and export However, the solutions are not synchronized and used effectively Financial policies are also limited and face many difficulties in the context of integration Therefore, accelerating Vietnam's coffee export to the US market is an important task of Vietnam's coffee industry, aiming to contribute to the successful implementation of the coffee industry's mission as well as national import and export strategy From the reasons mentioned above, I decided to choose the topic: “Financial policies solutions to promote Vietnam's coffee export to the US market.” Research purposes and objectives - Generalizing a number of coffee export theories and financial policies promoting export in the context of international trade integration - Studying and assessing the current situation of exporting coffee to the US market and financial policies to support this activity - Proposing a number of financial solutions to promote Vietnam's coffee export to the US market in the coming time Research object and area - The object of the dissertation is the activities of exporting Vietnamese coffee to the US market and the financial policies supporting Vietnam's coffee export activities - The area of the research is the State's macro-level financial policies affecting Vietnam's coffee exports to the US market Research methods - Methods of collecting data from reference materials: Based on primary and secondary information collected to build theoretical basis and prove the hypothesis - Methods of analysis and summarizing experience: Combining reasoning with reality, bringing reasoning for practical analysis combined with a review of past activities to draw conclusions for the hypothesis - Methods of observation: Collect data, specific events that characterize the course of events, phenomena to discover research and bring to study specific documents, intuitive feelings but has great scientific significance Contents and structure of the thesis In addition to the introduction, conclusion and list of references, the research topic consists of three chapters: Chapter Theoretical basis of goods export and financial policies to promote coffee export Chapter Current situation of Vietnam’s coffee export and financial policies to promote coffee export to the US market Chapter Solutions and recommendations about financial policies to promote Vietnam’s coffee export to the US market Chapter THEORETICAL BASIS OF GOODS EXPORT AND FINANCIAL POLICIES TO PROMOTE COFFEE EXPORT 1.1 Export of goods in the context of integration 1.1.1 International trade integration 1.1.1.1 Definition of international trade integration Economic integration is an arrangement among nations that typically includes the reduction or elimination of trade barriers and the coordination of monetary and fiscal policies Economic integration aims to reduce costs for both consumers and producers and to increase trade between the countries involved in the agreement (Investopedia, 2019) Trade integration is one of the key points of international economic integration Therefore, it is necessary to mention the integration of economies, markets of each country, or between economic sectors In addition, integration is always associated with the process of commitment to market opening and trade liberalization The international integration efforts of countries show on many different levels and levels such as unilateral opening of markets for trade liberalization, bilateral or multilateral cooperation, which are reflected in the signing of Bilateral trade agreements, participation in regional and global fora, institutions 1.1.1.2 Content of integration Firstly, signing and participating in international economic institutions and organizations, together with the negotiating members, to formulate common rules and implement commitments and regulations to the members of the agreement and organization Secondly, it is necessary to carry out necessary work in the country to ensure the achievement of the objectives of the integration process as well as the implementation of international integration regulations and commitments That is: - Adjust policies in the direction of liberalization and opening, reduce and proceed to remove tariff, especially non-tariff barriers, to make trade activities between member countries more effective This we can see very clearly for countries that are members of the World Trade Organization (WTO) Vietnam is one of the WTO members, and the important thing we are doing is adjusting policies to conform to WTO rules and for successful integration - Besides, countries also have to adjust the economic structure from production, business, goods and investment structure to suit the process of liberalization and opening up In this way, new countries can make the most of their domestic resources and advantages to improve their national competitiveness At the same time, it also helps countries integrate successfully and effectively This adjustment is not the same among countries and between different periods in the same country Depending on the different conditions and purposes, countries have the most appropriate, optimal and effective adjustments - In addition, countries must conduct reorganization and renewal of domestic enterprises Innovating technologies, ways of managing and training human resources to achieve skilled workers and good managers to ensure successful integration 1.1.1.3 Opportunities and challenges a Opportunities - Through integration, countries will participate in world labor division Thereby helping countries to exploit the resources and advantages that they have for economic development and international trade of the country - On the one hand, country's international trade will be promoted through integration Products of that country will be expanded to the consumer market, so this will encourage investors to expand production investment On the other hand, goods of that country will be more fiercely competitive in the world market and in the domestic market, forcing companies to invest in technological innovation and management to improve productivity and efficiency and increase the competitiveness of their products In addition, integration also helps countries and manufacturers to select products that they have advantages to produce Thus integration promotes the development of domestic manufacturing industry - Integration helps countries, especially developing countries, achieve the technology, capital, science and technology transfer as well as economic management experience and international business experience of advanced countries in the world - Integration will also help developing and underdeveloped countries, such as Vietnam, have the opportunity to resolve trade disputes more equally with developed countries b Challenges - The competition takes place increasingly fierce in the world market and even in the domestic market For commodity countries that are not yet highly competitive, this is a great challenge Without appropriate measures and policies to enhance competitiveness, there will be no foothold in the world market, even it will destroy domestic production - Economic interdependence among countries, underdeveloped countries are often at a disadvantage position and often treated unfairly by developed countries In addition, multinational corporations easily dominate business in an integrated economy, even dominate the Government - When participating in the integration, the exchange between countries in the world will become more and more open and thus foreign cultures as well as new society's vices will enter the country If the domestic culture is not strong enough to resist toxic alien culture, it will disrupt domestic culture The pragmatic lifestyle of following money will make people farther apart, traditional culture will be broken, especially with Asian countries with timehonored traditional culture That culture has lost, integration will fail and it will lose everything - Integration between the rich and the poor, between countries and between different levels within the same country, causes many complex social problems that are difficult for countries to solve soon Integration also exhausted domestic resources, causing environmental pollution 1.1.2 Coffee export for socio-economic development 1.1.2.1 Characteristics of coffee production and trading a The origin of coffee tree The original domesticated coffee plant is said to have been from Harar, and the native population is thought to be derived from Ethiopia with distinct nearby populations in Sudan and Kenya Coffee was primarily consumed in the Islamic world where it originated and was directly related to religious practices For example, coffee helped its consumers fast in the day and stay awake at night, during the Muslim celebration of Ramadan (Wikipedia, 2016) b Characteristics of coffee production and trading - Coffee is highly seasonal, this is the feature that most affects coffee business Even the major coffee producing and trading countries like Brazil and Colombia are affected by this feature In the harvest season, the price of coffee is usually low, while in the middle of the crop the price of coffee usually increases due to scarcity It is for this reason that coffee exporting countries in general and coffee exporting enterprises in particular will have more advantages when they have enough financial resources to serve the coffee reserve - Coffee is a long-term industrial tree, with a time from investment to exploitation of to years It is this characteristic that greatly affects the producers, especially the majority of farmers in coffee producing countries with limited financial resources, the initial investment for their coffee production mostly borrowed from banks On the other hand, due to the long time of exploitation and business, when the coffee market has fluctuations in the favorable direction, it is difficult for coffee growers to seize the opportunity right away When being put into business, the coffee market has other adverse changes - Coffee production is heavily influenced by natural and weather conditions In the years due to drought, flood, the crop failures greatly affected the world coffee market and upset many experts' predictions, as well as the plans of the countries and coffee trading companies, especially for the largest coffee producing countries in the world such as Brazil and Vietnam - Trading in coffee is highly risky, especially in the form of futures contracts, discounted prices, etc 1.1.2.2 Role of coffee exports to Vietnam’s economy and society a For economy, society and environment Exporting coffee each year brings to our economy a large amount of foreign currency, about billion USD Coffee exports contributed significantly to the implementation of the goals of the import-export strategy in particular and the goal of developing the socio-economic strategy in general of the country Besides, coffee exports also contribute to creating capital for investing in machinery and equipment for the cause of industrialization and modernization of the economy As a labor-intensive industry, coffee exports contribute to creating more jobs and help solve unemployment problems for the economy According to the Vietnam Cocoa Coffee Association (Vicofa), the coffee industry attracts about 600,000 to 700,000 workers annually, even in three months of harvest, the number of employees can reach 800,000 Labor in the coffee industry accounts for 2.93% of the total labor in the agriculture sector and accounts for 1.83% of the total employment in the national economy In addition, when identifying coffee as a key export, it will help the State to plan policies such as investment, regional planning in a key, reasonable, economical and highly effective manner in economic development Coffee is not only a tree of high economic value, but also helps to green the bare hills and mountains, protect the ecological environment Because coffee trees are suitable for hilly areas, especially Robusta coffee trees b For coffee producing and processing enterprises Exporting coffee helps businesses earn foreign currencies to invest in expanding machinery and equipment, and improve production, thereby increasing profits and efficiency in their operations Participating in coffee export business helps companies, especially specialized enterprises in coffee, enhance their public images and reputation in the eyes of their customers and in the world market, thereby creating enterprises a competitive advantage to improve operating efficiency, expand markets and increase market share and profits c For coffee producers Coffee is a domestic product with low demand due to the consumption habits of Asians in general and Vietnamese in particular who prefer to drink tea over coffee Therefore, coffee exports will find outlets for coffee farmers' products, helping them to sell their products and earn income Coffee is a very suitable crop with weather and soil conditions of Vietnam, especially in the Central Highlands and the Southeast Coffee is a high-value crop so exporting coffee will help coffee farmers get rich on their own land In addition, growing coffee for export helps them to create jobs for their family members in leisure time Besides, the coffee export also helps coffee farmers to be invested by the State as well as businesses to invest in materials, seeds and techniques that will make them improve the productivity of labor, crops and quantity of products thereby increasing their own income 1.1.2.3 Advantages and disadvantages of Vietnam’s coffee export a Advantages - Vietnamese coffee has a specific flavor and is cheaper than coffee of the same kind in other countries Besides, Vietnamese coffee is highly appreciated by roasters in the world for being easy to process, especially processing instant coffee - As a strategic export product, coffee is encouraged by the Governement to adopt policies on investment credit, export credit, trade promotion as well as other research and development supports - The world demand for coffee is constantly increasing, especially changes in Asian customs and consumption habits, including Japanese and Chinese consumers, the two countries close to Vietnam and have a large market Besides, the demand for coffee in Europe and North America is constantly increasing - The US's lifting of the economic embargo against Vietnam and the signing of bilateral trade agreements are an advantage for Vietnam's coffee exports, especially to the market that the world’s share of coffee as big as the United States During this time, as Vietnam officially became a member of WTO, our export coffee will have more and more advantages b Disadvantages 10 In addition, the State also needs to maintain an appropriate level of reward for enterprises with excellent export achievements in terms of output and turnover such as preferential loans for investment in machinery and equipment to improve their exported coffee quality Reward and encourage both money and titles for businesses that actively apply domestic and international technical standards in the production and processing of exported coffee This will encourage businesses to make efforts to improve the quality of their exported coffee themselves, thereby improving the quality of Vietnam's exported coffee, enhancing the image reputation of Vietnam exported coffee to the world market, in the eyes of customers, especially to large customers like the United States and the EU 3.2.2 Change from direct to indirect support to boost export In the current trend, when we become an official member of WTO, the direct support, especially financial support for exporting enterprises, will have to be removed in accordance with this organization's regulations Meanwhile, Vietnamese enterprises, including the majority of coffee exporters, are small and medium-sized enterprises, their financial capacity and resources are limited Therefore, the reduction in support will make these businesses face many adversities when we join the WTO In order for these businesses to operate well and promote exports, especially those with complicated fluctuations such as coffee, the State also needs to have supportive measures to boost exports but it is not contrary to WTO rules So we have to move from direct support to indirect support Indirect support for coffee exporters such as investments to encourage coffee producing and processing enterprises to train human resources, support through the provision of information to enterprises on markets coffee countries and the world through trade counselors abroad The State can invest in scientific research institutions and research machines and equipment for 57 coffee production, such as support for Hanoi University of Science and Technology and Ho Chi Minh City University of Technology, Vietnam National University of Agriculture or a number of national science centers on research projects and applications of coffee processing machines In addition, it partially supports businesses, especially those with excellent export achievements of newly branded coffee products Besides, support must still be maintained through export rewards as currently 3.2.3 Coffee export support must ensure a close conformity with the incentive mechanism and coordination In support of promoting coffee export, the State must go through commercial banks, Assistance Fund Support for coffee exports must follow the Government's regulations that must be appropriate and in the overall development program of the country's import and export strategy Support must be adjusted to each specific stage, to each specific market There is also a need for close coordination between the Assistance Fund and the commercial banks to both ensure the promotion of coffee export and not affect the operation of banks Financial assistance for coffee producing and processing enterprises must combine short-term and long-term support, associated with business support and investment in infrastructure for manufacturing and processing of exported coffee There must be a close coordination between the local socio-economic development program with the country's socio-economic development and the coffee industry's development strategy Thereby the local assistance for coffee trees must be in line with the development strategy of the coffee industry The encouragement for coffee must follow the overall development strategy of the whole industry Avoiding the widespread and asynchronous support, for example, supporting the construction of warehouses but without 58 storage equipment and tools, the warehouse will also be empty, wasteful and ineffective In addition, the support also ensures that coffee enterprises and farmers not rely on the support to reduce the initiative when participating in the world economic integration Besides, there should also be a close cooperation between the "four parties" of the State, scientists, entrepreneurs and farmers, in order to ensure the optimum and efficiency of Vietnam's coffee export from the stage of breeding, tending and processing to find markets for consumption, mechanisms and policies 3.3 Financial policy solutions to promote Vietnam's coffee export to the US market 3.3.1 For coffee production and trading enterprises 3.3.1.1 Develop a plan for investment capital and business Determining the demand for investment capital for each stage, depending on the goals and investment classification, enterprises must divide into two types: the demand for investment capital in the short term and the long term In the short term, it is necessary to invest in technological processes of production and processing, such as investment in tending, irrigation, harvesting and post-harvest, investment in raw coffee processing as well as technology and equipment for finished coffee processing In addition, businesses also need to invest in human resources In the immediate future, the capital demand for this investment will account for 65-75% of the investment capital demand for the whole development period to 2025 The determination of capital demand as well as the investment plan aims to modernize the technology of production and processing, thereby contributing to improving the quality of exported coffee products In addition, the investment in technology and equipment for manufacturing and processing 59 also helps businesses to shift the structure of exported coffee products, gradually increasing finished coffee in the total structure of their exported coffee, thereby contributing to improving the efficiency of Vietnamese coffee exports in general The investment in human resources aims to improve the standards of the staff engaged in coffee export business and to raise the qualifications of the management team of coffee exporters In the long term, enterprises will need to invest in seed research, promotion and market research and investment in brand building The investment in these stages cannot be overnight The effect is not immediately available, but often takes a long time to reach to years to see clearly Like investing in seed research, it will take a while for commercial trials before being put into mass production and it will take to years before it can be put into operation The market is the same, businesses also have to invest a long time to have stable markets, building and promoting brands will take time Because the brand not only creates a brand for itself, but also whether the brand is accepted by customers and the market depends on the image and reputation of the business, but this takes relatively long time Although the efficiency of these stages takes a long time to determine, they are very important, so businesses need to determine their investment needs through the establishment of long-term investment funds These investments may account for about 20% of the total investment of the business If this number is too large, the enterprises may face difficulties because of lack of capital to invest in other stages because the payback period of these stages is quite long, while the financial resources of Vietnamese enterprises are limited (mostly small and medium-size enterprises) In addition to determining the source of capital for investment, enterprises also need to identify their business capital First of all, it is necessary to determine the regular business capital in service of the purchase, sale and reserve of coffee for export This capital must be identified for each 60 business period, which will vary depending on the business strategy of each enterprise In addition, businesses need to identify the financial source for insurance As we know, coffee trading is very risky, so enterprises need to establish an insurance fund, including hedging and buying insurance from insurance companies This source also depends on each business but the insurance fund needs to account for about 20% of the total business capital so that businesses can limit the risks in the coffee import and export business 3.3.1.2 Mobilizing capital sources Once the needs and structure of the sources of investment and business have been identified, businesses need to organize the mobilization of those capital sources The sources that enterprises need to mobilize for investment capital Firstly, they are capital of the business owner, the borrowed capital from commercial banks, from the State budget (if it is a State-owned enterprise), contributed capital sources, joint venture capital (including joint ventures with foreign countries and with domestic enterprises) Furthermore, assistance from the State and foreign Government agencies is needed to invest in coffee production and processing for export With business capital, similar to investment capital, businesses need to raise capital from their own capital, borrowed capital from commercial banks In addition, businesses can mobilize capital through other credit institutions, through partners' credit, joint venture and even capital of people, through equitization to mobilize idle capital contribution 3.3.1.3 Improve the efficiency of capital use Improving the efficiency of capital use not only improve the efficiency of coffee production and export activities but also help businesses have sufficient financial resources to invest in other important stages to serve the coffee export To enhance the efficiency of capital use, businesses need to implement the following measures 61 - Increasing the speed of turnover of business capital through determining the appropriate level of reserve goods so that sufficient goods are sold at an appropriate cost, actively seeking customers and consuming coffee that enterprises have purchasde, stored and proccessed At the same time, the leaders of enterprises also need to direct the good performance of information collection, forecasting the needs of the market as well as the fluctuations of the world coffee market to have a business plan for the next crop year Furthermore, businesses also need to buy and sell immediately to reduce the finance for reserves while the financial resources of coffee exporting enterprises in Vietnam are limited - Enterprises, especially large Vietnamese coffee enterprises such as Vietnam National Coffee Corporation, need to recover debts from both foreign customers, agents and domestic coffee trading companies More resolute in debt collection, as well as handling irrevocable investments such as providing loans to farmers, allowing agents to buy products, but they not deliver or not delivered sufficiently for businesses In addition, businesses need to be more careful about discount price contracts for foreign customers Businesses also need to gradually reduce the implementation of postpaid contracts, but should look for L/C payment contracts so that enterprises are always in the shortage of business capital This will help enterprises have enough capital for the next business period In addition, they also need to find credits assistance from foreign customers - Carry out the inspection and financial control closely, especially financial revenue and expenditure, to collect savings Save costs in production by improving labor productivity, saving costs in export business through saving on the costs of purchases, sales and costs of research market search, find partners 62 3.3.1.4 Financial investment for production and processing, market research and trade promotion - Investing in researching and improving coffee varieties to get high yield and good quality coffee Developing Arabica coffee, which is very popular with Americans - Investing in purchasing new and modern equipment and facilities, renovating and improving old machinery to process finished coffee for export - Concentrating investment capital for research on the US market by sending delegations to the United States to survey and research this market Also, we need to study the way coffee is traded in the US market as well as learn about the legal system and regulations related to coffee trading in this market It is also possible to hire US companies or other companies specializing in market research to research the US market - In terms of trade promotion, it is necessary to invest in setting up its representative office in the United States to search for information as well as bring coffee of the business to US consumers - Conducting links with US partners or hiring US advertising companies to make advertising programs for products as well as for enterprises, also through those who are living in the US to promote its coffee products to US consumers - Enterprises need to invest to maintain and improve their web sites to make it easier to find sources of information from customers as well as to introduce their products and images to foreign customers In addition, they can become a member of organization that research on the US coffee market to obtain information in the fastest and most accurate way 63 3.3.1.5 Financial investment for development of human resources - Investing in training human resources in enterprises, adopting policies to attract qualified labor, knowledge about coffee and export Sending officials abroad to study and obtain knowledge of coffee import and export business - For officials engaged in coffee export business, businesses also conduct training through forms such as self-training, on-the-job training, and association with domestic universities It is even possible to hire foreign experts for training For staff working in risk management in coffee trading business, it is necessary to send abroad training and learn experience - In addition, it is necessary to invest in training a team of experts in coffee production to assist enterprises in coffee production and supporting farmers that enterprises invest their production capital in to get coffee sources 3.3.2 For the Government 3.3.2.1 Financial policies for investment for production and processing - The State should have policies to invest in building a coffee seed research institute, a seed bank to ensure the production of quality coffee varieties as well as to select appropriate coffee varieties for each region - Investing in building infrastructure for coffee production, processing and export Constructing roads from coffee production to processing to facilitate transportation On the other hand, it is necessary to build coffee trading markets to create favorable conditions for producers to easily sell their products, while coffee export enterprises may facilitate the purchase and export of processed coffee In the immediate future, the Government should implement projects on building a coffee market in Dak Lak and a coffee trading center in Ho Chi Minh City soon - From the Government's relationship, there should be policies to seek ODA capital for domestic coffee production and processing Also looking for 64 preferrential loans as well as funding programs from international credit institutions such as the World Bank, ADB, or the IMF, etc Because currently beside the support of the French Development Fund for the project Arabica coffee, the support of the World Bank for Vietnam's agricultural products accounts for a small proportion, so far there is very little other investment support from international organizations for Vietnam's coffee industry - Developing and completing policies on technology transfer for the coffee industry, especially with processing technology, such as zero tax rate for enterprises when they import machinery, equipment and technology for processing coffee for export There is a policy to transfer advanced technologies that are compatible with our financial capabilities, but absolutely not to import outdated technologies - Allowing and encouraging the coffee industry and the Vietnam National Coffee Corporation to continue borrowing from French Development Fund to implement phase of the Arabica coffee development project in localities that have succeeded in phase such as Nghe An, Son La and Lam Dong - There must be policies to attract FDI capital into coffee production and processing in order to absorb advanced technology as well as the way of managing coffee export business of the leading coffee business groups in the world However, it is also important to avoid making Vietnam's coffee industry become hired workers for foreign corporations, becoming raw material suppliers for foreign investors to process in Vietnam then export Because they have more advantages in terms of financial resources, market and coffee business 3.3.2.2 Policies to support trade promotion and expand the US coffee market 65 - The State provides enterprises with a part of funding for delegations to study and explore the US market in order to look for investment opportunities and signing coffee export contracts for US customers, especially for US coffee roasting enterprises - Helping businesses set up representative offices in the United States, besides, the Government asked the Ministry of Agriculture and Rural Development and VICOFA to establish representative offices for Vietnamese coffee in the United States - Supporting for businesses in participating fairs and exhibitions to introduce their coffee products in the United States Through commercial counselor and Vietnamese trade in the United States to assist businesses in promoting their products in the US market At the same time, through these agencies, they can provide information on the US coffee market quickly and accurately to domestic coffee exporters - Assisting businesses in resolving trade disputes with U.S partners such as supporting businesses in providing information on the legal system, advice on hiring lawyers, how to formalities and procedures for litigation, etc 3.3.2.3 Other export support policies - The Government needs to maintain the current level of support through coffee exports, not to raise the requirements higher In addition, it is necessary to have a reward policy for businesses with new exports and new markets, especially for the export of finished coffee - The Government needs to disburse early and quickly the approved projects such as projects on building coffee markets, coffee trading centers or projects on developing Arabica coffee - There must be policies that supporting coffee growers on seeds, technology, capital and consumption Because in recent years of trial planting, 66 Arabica coffee trees have been difficult to grow, have low yields, or lost crops and pests - Encouraging enterprises to participate in insurance when doing business in exporting coffee First of all, the Government needs to support enterprises to participate in insurance by providing a part of insurance premium, through Export Support Fund of the Government and Development Assistance Fund Then this amount will be gradually phased out when businesses establish themselves an insurance fund - There should be a policy in order to adjust and perfect the domestic coffee market to avoid the situation of trade competition causing loss and discredit to Vietnamese coffee - Maintaining supportive policies for coffee producing, processing and exporting enterprises through credit Collaborate with commercial banks to provide credit to coffee growers, processing and export businesses through the reduction of loan procedures, collateral requirements, as well as other conditions - There is a need to further improve the role and performance of the Development Assistance Fund Annually, the Development Assistance Fund should provide coffee exporters with a certain amount of support in their export support funds In the structure of export support, the level of support for coffee export should be supported about 10% It should be divided into support categories such as export bonuses and export credits With export support credit, the Fund should support businesses in purchasing reserves and need to extend the lending period for coffee exporters Additionally, with loans provided by the Export Support Fund to businesses, the interest rate must be about 50% or lower than the export credit interest rate of commercial banks 3.3.2.4 Other recommendations 67 a Coordinating in export finance management between central and local Localities must work together with the State to assist coffee-growing households and coffee processing and trading enterprises in their respective localities The localities and the State should strictly control the export finance of enterprises, especially central and local State-owned enterprises b Combination between financial support and technical support In addition to providing capital support for coffee growers, the State should provide technical assistance for planting and tending coffee trees, especially Arabica trees This technical assistance is through the sending of technical staff to the farms of growers to guide coffee cultivation and care techniques for coffee growers, help them obtain knowledge of harvesting, preservation and preliminary processing techniques to minimize mitigate losses in the harvest and post-harvest stages c Policies on training and developing human resources for the coffee industry The Government also needs policies to support investment in human resource development, including the opening of training courses to guide coffee farmers on caring, harvesting and processing techniques, preserving and helping businesses to train workers, especially those who work in export coffee processing factories Besides, the State should collaborate with the system of universities throughout the country to support the training of staff for businesses It is through Vietnam National University of Agriculture to train engineers in coffee production, the Polytechnic University in training mechanical engineers for processing plants and through economic universities to get a large number of quality salesmen as well as managers for coffee exporting enterprises In addition, the State should also have courses on coffee business, risk management, system management and business 68 environment of the main markets of Vietnamese coffee including the United States coffee market 3.3.3 For associations and organizations providing coffee export support services - Enhancing the role of Vicofa to more closely link coffee businesses of the whole country together in order to create power for the Vietnamese coffee industry, avoiding the disorder of the domestic market and price pressure by foreign importers At the same time, it is also necessary to promptly make recommendations to the Government to adjust and timely support coffee exporting enterprises when the world coffee market has many changes, as well as when the Vietnam’s coffee industry is in trouble - Seeking funding sources for member companies, it is necessary to establish an association fund to support businesses when they face adversities The source of the fund is through monthly or yearly member contributions, according to the percentage of profits or revenue they gian In addition, the association needs to find outside sources through organizations of developed countries or the United Nations Besides, the association can also get this source from the State budget or through the sale of information to businesses in the industry (for member enterprises, provide free information) - In addition to providing information to member companies, the association also needs to support businesses in training, product promotion as well as giving advice on legal techniques and export trade for businesses when exporting to the US market - For VCCI, it is necessary to organize trips for coffee business delegations to the US market, especially when accompanying Party and State leaders to visit other countries 69 - VCCI also needs consultancy support for coffee exporting enterprises, as well as other supports such as trade promotion, exhibitions, etc organized by VCCI domestically and abroad - With organizations providing support services for coffee exports such as transportation, consulting, insurance, customs, inspection, it is necessary to improve the quality of service Finding ways to lower the cost of its products and services, especially with transport and storage services because the current cost of Vietnam's ports is 1.5 times higher than other ports in the region Customs procedures should be completed more quickly, simply, reduce insurance premiums and perfrom faster when paying compensation to enterprises if risks arise 70 CONCLUSION The United States market is an enormous market both in capacity and demand It is also home to a number of coffee roasters and has a large coffee trading center of the world The US is also an attractive market of Vietnamese coffee with a 20% market share of Vietnamese coffee in the United States, the demand of the American people for coffee is constantly increasing, while the ability to produce and process coffee Vietnam's coffee is huge Therefore, promoting the export of Vietnamese coffee to the US market in the near future is a very necessary thing It brings many benefits to Vietnam's coffee industry and contributes significantly to the implementation of Vietnam's import and export development strategy for the period 2020-2030 My thesis topic “Financial policies solutions to promote Vietnam's coffee export to the US market” is completed in order to meet the above requirements Although there are many efforts in studying and researching documents, this is an area of difficult topics and limited capacities and qualifications, so the research topic cannot avoid shortcomings Therefore, I am looking forward to receiving the comments and supplements from the teachers so that I can improve better in future studies Once again, I would like to thank Le Huy Doan, PhD has kindly guided me to complete this research well I would like to express my sincere thanks to the leadership of International School of Economics and Finance and all the teachers for creating good conditions for me to complete my graduate thesis 71 ... financial policies to promote Vietnam’s coffee export to the US market Chapter THEORETICAL BASIS OF GOODS EXPORT AND FINANCIAL POLICIES TO PROMOTE COFFEE EXPORT 1.1 Export of goods in the context... policies to promote coffee export Chapter Current situation of Vietnam’s coffee export and financial policies to promote coffee export to the US market Chapter Solutions and recommendations about financial. .. for export enterprises 2.3 Financial policies to promote the export of Vietnamese coffee to the US market 2.3.1 Import and export tax policy With raw coffee exported, they are not subject to export