Strategy

The current ongoing pandemic is also providing the time to ease pressure on Vietnamese trade as restructuring of the Global Supply Chain is being dealt with. Only those countries that are well-prepared and have successfully controlled and contained the pandemic will be able to see a good outcome and macroeconomic stability in the future by an improved marketing strategy. Break in supply chain The repeated closure of the border, and immigration restrictions during the current pandemic have caused trade activities and global value chains to be disrupted or broken, especially the important supply chains to the US, China, Japan, Germany, and the European Union (EU). All these countries are reeling under the havoc being caused by the Covid-19 pandemic. At the same time, manufacturing and business facilities of 1,000 of the world's largest suppliers have upto 12,000 units in Covid-19 quarantined areas, most of which are located in China. This explains why there is a breakdown in the Global Value Chain (GVC) that is seriously affecting trade activities for almost 50% of international trade. In addition, the application of digital transformation in manufacturing and business activities has made countries increase automation, in order to improve production capacity and withdraw from the GVC, so as to localize the economy. The disruption of Global Supply Chains is also due to sanctions inflicted during the US-China trade war, along with rise of protectionism. The industries in the world are overly dependent on China, so the leading countries tend to withdraw from what is considered the factory of the world. Closer linking of the supply chain with the value chain is essential for ease of control. The US-China trade war had partially initiated and spurred this process when China thought it needed a strategy to undermine America's leading role in global trade. The pandemic is not the only reason that has caused a change in the structure of the Global Value Chain, …

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The Vietnam Trade Office in the UK said that to create a larger market breakthrough and strengthen a sustainable position for Vietnamese rice in the UK, as well as other major markets, the Vietnamese rice industry needs to implement a branding strategy suitable for each market. The national brand program needs to select some high-quality and high-yield rice varieties to name them in a simple, easy-to-remember, easy-to-pronounce way along with the place where the rice is grown (Soc Trang Vietnam rice, for instance) or the name of the creator of that rice variety (like Mr. Cua rice) to easily register for brand protection abroad. Although ST25 rice was awarded as the world’s best rice in 2019, a small number of British people know about it, and the marketing effectiveness in the UK market is not much. By Van Phuc – Translated by Thanh Nha …

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Illustrative image (Source: VNA) HCM City (VNA) – An online conference was held in Ho Chi Minh City on May 5 to seek measures and strategies to effectively approach and exploit the promising but choosy European market. Tran Thi Trang, head of the Training Office of the HCM City Center for Trade Promotion and Investment (ITPC) said that Europe is one of the largest trade partners of Vietnam, while Vietnam is the second biggest trade partner of Europe in Southeast Asia. Despite impacts from the COVID-19 pandemic , trade exchange between the two sides has still been maintained, especially since the EU-Vietnam Free Trade Agreement (EVFTA) took effect, import-export activities have been on the rise and forecast to continue to grow in the future, she said. Meanwhile, Zachaier, director for supply chain at Source of Asia (SOA), said that Europe is a potential market that is the target of many countries. Vietnam is the one of the important trade partners of Europe with outstanding advantages thanks to the EVFTA. By the end of 2020, four months after the deal took effect, Vietnam's exports to the EU saw positive signs despite impacts from COVID-19. Vietnam's exports to Europe reached 42 billion USD, he noted, adding that the figure has accounted for only 2 percent of the total import value of the EU, showing that there is large room for Vietnamese goods to penetrate into the market. He said that European consumers are paying greater attention to sustainability, including the origin trace, social responsibility and environmental protection. In that context, Vietnamese exporters should assess the sustainability of their products and the regulations in the market, thus designing strategies to adjust the supply chain to suit international standards and rules, he suggested. Huynh Thanh Trung, Director of LeanWares Company, said that Vietnamese enterprises have seen limitations in high added value stages such as designing, development research and marketing. …

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