US businesses seek suppliers, but are Vietnamese firms ready?
VietNamNet Bridge - Economists, while agreeing that Vietnam has opportunities to boost exports to the US and other choosy markets, say enterprises may not be prepared to grasp the chances afforded to them. 


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At the 2017 Supplier Day organized by AmCham Vietnam, US manufacturers and retailers looked for Vietnamese suppliers in order to increase the localization ratio in products and services, and put more made-in-Vietnam products into their distribution networks.

Commenting about the event, experts say this is a great opportunity for Vietnamese enterprises, but warn that it is not easy to enter the US market.

Pham Ngoc Hung, deputy chair of the HCMC Enterprises Association, said this is an annual trade promotion program organized by AmCham.

“The biggest benefit from the event is that Vietnamese businesses can get more information that helps them penetrate the US market. However, it is still unclear about the contracts businesses can obtain,” Hung said.

There are many US consultancy firms present in Vietnam which are ready to give advice to Vietnamese businesses that want to bring their products to the US market. 

Besides AmCham, other organizations, including Transparency International, have also been giving support to Vietnamese businesses.

Hung noted that many Vietnamese businesses are meeting big difficulties trying to enter the US market.

There are many US consultancy firms present in Vietnam which are ready to give advice to Vietnamese businesses that want to bring their products to the US market. 

“Vietnamese businesses once put high hopes on TPP and made heavy investments to take full advantage of TPP. However, the US withdrawal from TPP has discouraged them,” he said.

An analyst also said the problem is whether Vietnamese-made products can satisfy strict requirements set by importers. 

Samsung, for example, said it welcomes Vietnamese suppliers and has organized conferences to look for Vietnamese enterprises which can supply high-quality components. 

However, the number of Vietnamese businesses which can join Samsung’s global production chain remains modest.

Meanwhile, Pham Tat Thang, an MOIT high ranking researcher, commented that events like the AmCham Supplier Day are useful and Vietnam needs many more similar activities.
 
The country has been trying different ways to bring its products to the world market. 

Vietnamese exporters, for example, have successfully brought specialty fruits such as mango star apple into the US and Australian distribution networks. 

And Vietnam has opened its doors widely to receive foreign investors who it hopes can help increase locally made content ratio in products.

“The US wants to to invest in material production fields, while Vietnam needs more investments to take full advantage of the FTAs Vietnam has signed,” Thang said.


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Minh Thanh

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