A recent business survey showed that the European Union is a diverse market with a big purchasing power, and if businesses want to boost their exports to this market, they should explore it thoroughly to overcome barriers.

Although Vietnamese exports to the European Union (EU) have seen high annual growth rates, they still face risks and challenges. The conclusion was made by the Central Institute for Economic Management following a survey conducted at 132 businesses eligible to export their products to this demanding market.

Vo Tri Thanh, head of the Institute’s International Economic Integration Research Board talked about the results of the survey and recommendations to businesses in an interview granted to VOV.

VOV: What are the major barriers preventing businesses from exporting products to the EU?

Mr Thanh: First of all, most businesses lack information about the EU market which has a diverse and big purchasing power. The EU is the market not only for wealthy people as many businesses think, but also for the mid-class, the poor and particularly consumers from newly admitted members that have low per capita incomes. Second, the EU is setting up barriers on food safety and hygiene and technical barriers against its imports. In addition, it is imposing high anti-dumping prices on Vietnam’s key exports.

VOV: Our export products have low added value thanks to abundant natural resources and low labour costs. However, they are vulnerable to dumping lawsuits lodged by the EU. What should we do to increase the value of our products?

Mr Thanh: The crux of the matter is that our businesses should be kept abreast of up-to-date information about the EU market, particularly regulations on food safety and hygiene to reduce the possibility of being confronted with the barriers as well as anti-dumping measures applied by the EU. In addition, our businesses have different measures to increase the competitiveness of their products, for instance through improving product quality and seeking new markets. Garments are a case in point. Vietnamese garment makers often find it difficult to compete with low-cost garments from China, but their high-quality and expensive products remain competitive.

VOV: Where do businesses get accurate and useful information?

Mr Thanh: Today information is collected from various sources such as books, newspapers, magazines, the Internet and relevant agencies. The crux of the matter is how businesses use, process and analyse the sources to have precise forecasts for their export plans. I think businesses should boost cooperation with research institutes, Vietnamese missions abroad and particularly key importers to be provided with appropriate support and consultations.

VOV: In which ways do you think the results of the survey can support our exporters’ effort to boost exports to the EU?

Mr Thanh: By completing the survey, we are fully aware of the role and significance of the EU market for Vietnam’s export products. The survey helped policymakers better understand areas, for instance human resources, infrastructure facilities and information, so that they can make recommendations to the Government to support businesses. Last but not least, the survey helped businesses have a proper understanding of the barriers they might face. Businesses have no choice but to work closely with the crafts association and the Government to avoid and break down these barriers.

VOV: Thank you very much.