Join forces together to increase export turnover

With the need to expand trade, import and export, contributing to the general growth of the economy, the more supporting services and mechanisms and policies on supporting there are, the more the business will be facilitated. In picture: Im-export activities at Hai Phong International Container Port (HICT). Picture: Thai Binh.

Enterprises take the initiative, the management agency on the Enterprises and management agencies to take the initiative.

According to Customs statistics, as of June 2018, Vietnam's export turnover reached $ 113.93 billion, an increase of 16% over the same period of 2017. This has been accelerating the pace of completion for the project on enhancing the competitiveness of Vietnam's export commodities up to 2020 and orientations to 2030 as approved by the Prime Minister; with the aim of raising the capacity of exporting enterprises, striving to increase the export turnover by 2020 more than 3 times that of 2010; Export growth rate of 8% / year in the period 2016-2020.

Therefore, ministries, departments and enterprises have to work hard to accomplish the above goals. However, in addition to many advantages, Nguyen Quang Vinh, Secretary General of Vietnam Chamber of Commerce and Industry (VCCI), said that Vietnam's export enterprises, especially small and medium enterprises, are lacking and weak. The lack of information on policies and export markets, production costs and support services for export is still high. Therefore, solutions to support enterprises in this issue need to be strengthened, because with only the efforts of enterprises, it is not enough.

This issue is also mentioned by Mr. Nguyen Tien Vuong, Deputy General Director of Hanoi Trading Corporation - Hapro Joint Stock Company, saying that Hapro is a business which considers domestic business of import and export as the core; It is expected that by the end of 2018, Hapro will strive to achieve an export turnover of US $ 115 million, earning about 80% of total revenue. Hapro has actively participated in trade promotion programs of ministries, sectors and associations, by investing in the development of export goods sources; Developing agricultural product processing factories and fine-art handicraft production plants to ensure BSCI's certification in order to ensure conditions for large markets; Building up models of goods to keep up with tastes and differences in increasing competition in selling goods for export.

But shared with VCCI secretary general, according to Vuong, if there is no entry, facilitating trade, reduction of administrative procedures as well as reducing clearance time and opening the Customs’ policy framework (Ministry of Finance), Ministry of Industry and Trade ..., it will be difficult for enterprises to continue achieving the current results. "The export market in 2018 has many advantages to promote export enterprises, but there are still many difficulties and challenges, so if any business is not active, not willing and has no prior preparation, those enterprises will lose competitive benefits, even losing at home," Nguyen Tien Vuong stressed.

What is support?

A problem in the last days of June was the fluctuation of the exchange rate, and this has caused a lot of worries for import-export enterprises as well as many other businesses dealing in US dollars. Because the price increased it will affect the value of goods signed with customers before, exporters can benefit but importers face risks of higher commodity prices, because the borrowing and trading of many enterprises in USD will have to add the amplitude of the exchange rate to the interest rate...

Therefore, at this time, the mechanism of exchange rate insurance is taken notice by enterprises and when expanding export activities. As a result, many banks have provided this service and promoted quite well for supporting enterprises. Dao Minh Anh, Deputy General Director in charge of corporate customers, Orient Commercial Joint Stock Bank (OCB), said that OCB has cooperated with insurance companies to provide support services, insurance exchange rates for enterprises. Therefore, businesses are advised on market information every day, ensuring in the course of operation whether the rate is up or down, the business remains stable, while the cost of hedging exchange rates is only about 1% year.

In addition, the export activities of enterprises also face the risks of goods, fire, transportation, payment ... causing delays in time, increasing costs as well as damaging the reputation of enterprises. Therefore, insurance companies such as Bao Viet Insurance Corporation have provided insurance packages for export enterprises, notably commercial credit insurance to help companies avoid risks of non-payment or delayed payment for many reasons by partners and customers. According to Baoviet's representative, commercial credit insurance services also help businesses increase sales thanks to more competitive payment methods, not requiring customers to open L / C or deposit; protecting businesses from bad debts as well as improving access to business credit, thanks to information on transactions when using the service...

Many experts said that with the deep integration into the international market in the participation of many Free Trade Agreements (FTAs), State intervention and support in the production of enterprises is not possible in the country because it violates the competition and trade provisions. Therefore, the support must adopt favorable policies and mechanisms in the business environment along with the support from enterprises and organizations relating to import-export services such as the information portal of export support, trade promotion program, commodity insurance, export credit guarantee approaching the source of favorable capital for export enterprises....

In general, businesses have said that with the need to expand trade, import and export, contributing to the general growth of the economy, the more supporting services and mechanisms there are, the more they will create more favorable conditions for businesses. The problem is how to get these services to be effective, and in essence, because most businesses are small and medium size, the support must be appropriate.