Is the door to US market narrowing for Vietnamese exporters?

 vietnamnet

Last update 01:44 | 07/06/2017
VietNamNet Bridge – The value of Vietnam’s exports to the US increased from $1 billion in 2001 to $38.46 billion in 2016, and it may reach $40 billion in 2017.
Vietnam last year was the 13th largest exporter to the US, with export turnover increasing by 14.9 percent compared with 2015.

However, many Vietnamese exporters complain it is becoming more difficult to export products to the US.

Bich Chi, specializing in rice products, has stopped selling its goods to New York and has found it difficult to approach supermarket chains in other states in the US.

The value of Vietnam’s exports to the US increased from $1 billion in 2001 to $38.46 billion in 2016, and it may reach $40 billion in 2017. 

Bich Chi exports $6 million worth of products to the US every year. However, its products are mostly sold in small supermarkets owned by Vietnamese, or at Walong and Gia Thanh owned by Chinese.

Walmart also sells Bich Chi’s products, but it imports products through Japanese and SK collection companies.

Analysts said exports to the US are growing, but they are likely to decrease because of the weak capability of predicting the market, changes in the US market, and weak capability of Vietnamese to adapt to new circumstances and trade barriers.

Moreover, as Vietnam’s support industries have not developed well, the country has to import input materials in large quantities to make products. As a result, it will have disadvantages when global prices fluctuate.

They warned that pressure on exporters will be worse in the time to come when the Trump administration implements two executive decrees on trade.

Vietnam has been listed among 16 countries allegedly “stealing” US wealth. The country has a trade surplus of $32 billion with the US.

In March 2017, 98,000 jobs were generated in non-agricultural sectors in the US, while the unemployment rate fell to a 10-year low to 4.5 percent, according to the US Department of Labor.

Thus, Trump will be more radical in implementing the “US first” policy to revive economic growth of 3 percent in the second quarter of 2017.

According to Le Sy Giang, an expert who worked at the Competition Administration Department for many years, Vietnam has been named in a trade fraud list, which will have negative impact on Vietnamese enterprises doing business with the US.

It is highly possible that the US will maintain strict monitoring over imports with rapid growth, instead of general monitoring as it did in the past. This will be applied to products such as Vietnam’s catfish.

As a result, the growth rate of farm and seafood exports could slow down in the time to come.

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This entry was posted in US-VN Trade - Thương mại Việt Mỹ and tagged , , by Trần Đình Hoành. Bookmark the permalink.

About Trần Đình Hoành

I am an attorney in the Washington DC area, with a Doctor of Law in the US, attended the master program at the National School of Administration of Việt Nam, and graduated from Sài Gòn University Law School. I aso studied philosophy at the School of Letters in Sài Gòn. I have worked as an anti-trust attorney for Federal Trade Commission and a litigator for a fortune-100 telecom company in Washington DC. I have taught law courses for legal professionals in Việt Nam and still counsel VN government agencies on legal matters. I have founded and managed businesses for me and my family, both law and non-law. I have published many articles on national newspapers and radio stations in Việt Nam. In 1989 I was one of the founding members of US-VN Trade Council, working to re-establish US-VN relationship. Since the early 90's, I have established and managed VNFORUM and VNBIZ forum on VN-related matters; these forums are the subject of a PhD thesis by Dr. Caroline Valverde at UC-Berkeley and her book Transnationalizing Viet Nam. I translate poetry and my translation of "A Request at Đồng Lộc Cemetery" is now engraved on a stone memorial at Đồng Lộc National Shrine in VN. I study and teach the Bible and Buddhism. In 2009 I founded and still manage dotchuoinon.com on positive thinking and two other blogs on Buddhism. In 2015 a group of friends and I founded website CVD - Conversations on Vietnam Development (cvdvn.net). I study the art of leadership with many friends who are religious, business and government leaders from many countries. In October 2011 Phu Nu Publishing House in Hanoi published my book "Positive Thinking to Change Your Life", in Vietnamese (TƯ DUY TÍCH CỰC Thay Đổi Cuộc Sống). In December 2013 Phu Nu Publishing House published my book "10 Core Values for Success". I practice Jiu Jitsu and Tai Chi for health, and play guitar as a hobby, usually accompanying my wife Trần Lê Túy Phượng, aka singer Linh Phượng.

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