(VEN) – The quality and prices of Vietnamese goods are suitable with consumer demands in the South American market. Therefore, in the first Francal fair, a booth introducing Vietnamese footwear, garments and textiles attracted the interests of customers.
Opportunities for Vietnamese goods
Bilateral economic cooperation between Brazil-Vietnam has recorded strong growth in recent years. In the first six months of this year, total two-way trade turnover between the two countries reached over US$1 billion. Together with efforts in trade promotion activities, this figure is expected to reach US$2 billion in this year. Vietnam’s export turnover to Brazil is expected to reach about US$1 billion.
According to Vietnamese Commercial Counselor in Brazil Pham Ba Uong, in a past decade, relations between the two countries had become better. Despite a number of factors, such as geographic distance, the lack of bilateral trade agreements and policies to protect the market, Brazil remains an attractive market for Vietnamese goods, contributing to creating favorable conditions for domestic businesses to export goods to this market.
Economic experts said that the Brazilian market created many opportunities for Vietnamese goods due to a large market capacity, high population of nearly 200 million people and high purchasing power. These factors will create favorable conditions for Vietnamese goods entering the Brazilian market. Although commercial scale between the two countries has rapidly grown, the market share of goods exports of Vietnam has only accounted for 0.3 percent.
Brazilian businesses in some regions have not fully understood in terms of Vietnam in general and Vietnamese goods in particular. At distribution centers and supermarkets in Brazil, the presence of Vietnamese goods is not significant. Therefore, the organization of trade promotion activities in Brazil is very necessary to Vietnamese businesses can directly trade with partners, contributing to creating favorable conditions for goods exports to this market.
An attractive market
The Francal fair organized in Brazil from July 6-17, 2013 witnessed the participation of representatives in large businesses and associations in the fields of footwear, garments and textiles. The fair was a valuable lesson for Vietnamese businesses to implement trade promotion programs in order to promote exports to the South American market in the near future.
Hanoi’s businesses displayed their products at the Francal-International Shoe and Accessories Fashion Fair and participated in seminars and conferences with representatives of the Brazil Chamber of Commerce, the Brazilian Footwear Association, trade and investment promotion organizations and Brazilian businesses. The Brazilian welcomed the visit of Hanoi’s delegation. Brazil Chamber of Commerce vice president said that he would create favorable conditions for Vietnamese businesses to display, introduce and sell Vietnamese goods in the Brazilian market.
The trip to Brazil participating in the fair brought practical results for Vietnamese businesses. Hong Phuc Shoes Co., Ltd.’s products in the first time available in the Brazilian market attracted the interests of customers at the fair. In terms of shoes manufacturing, Brazilian technical experts were eager to help footwear joint stock companies develop. It is expected that in the next three months, the 27-7 JSC will complete contracts in terms of technological transfer with Brazilian experts. Another example is the Dong Luc JSC. The company sent products to display at the fair. Dong Luc JSC’s products attracted the interests of customers at the fair. In addition, the Nhat Hai Project Technology JSC signed an economic contract with Brazil’s LEG Company.
New opportunities
Brazil is a potential market for Vietnamese footwear, garments and textiles. In addition, consumer demands in this market are suitable with production capacity of Vietnamese joint stock companies. In the trip to Brazil, the Garment 10 JSC (GARCO 10) founded a partner and signed an economic contract to export 200,000 shirts. In addition, Dong Xuan Knitting Company (DOXIMEX)’s products attracted the interests of customers at the fair and representative of the company has learned the ability to export goods to this market. However, the most difficult thing for Vietnamese footwear, garments and textiles is the high tax rate in Brazil.
According to Hanoi Department of Industry and Trade Deputy Director Pham Duc Tien, “the South American market is the potential market. Trade promotion activities will be an opportunity for Vietnamese businesses to research this market and advertise their products. To build long-term export market, businesses need to actively enter the market, negotiate with partners to sign economic contracts.”
Hanoi Department of Industry and Trade will continue to keep the relationship with Brazilian associations, chambers of commerce and organizations to update market information and find out opportunities for Vietnamese businesses. Hanoi Department of Industry and Trade will firstly focus on exporting footwear, garments and textiles to this market.
| Hanoi Department of Industry and Trade Deputy Director Pham Duc Tien said that Hanoi Department of Industry and Trade would have proposals to the Brazilian Embassy in Vietnam and the Brazilian Footwear Association to be supported in terms of training of human resources and design for Vietnamese goods. In addition, the department will create favorable conditions for Brazilian businesses to seek partners in Hanoi. |
By Kim Lien
Đăng ký: VietNam News
