Unlocking the potential of Nghe An goods exports to the US

(Baonghean) - Exporting to the United States is a market with great potential. However, in 2011, Nghe An's export turnover to the United States only reached 2.9 million USD, accounting for 1.3%, by 2015 the export turnover to this market reached 25.7 million USD.

Exports to the United States are still modest, with the export turnover to the US market only accounting for about 2.4% - 2.6% of the province's total export turnover, much lower than the export turnover to the Chinese market at 38.3% and to South Korea at 22.8%. Export items include: Textiles, children's toys, gas lighters, handicrafts, fruit juices, etc.

In the first 9 months of 2016, Nghe An exported 3 more products to the US market, which are: Wood and wood products with export turnover reaching 498,940 USD; Stones of all kinds reaching 153,220 USD; Dried garlic reaching 37,441 USD. But the export turnover to the US market is decreasing, reaching only 7.891 million USD, down 54% compared to the same period in 2015. In which, the textile product with the largest export turnover only reached 3.674 million USD, down 54.2%; Children's toys reached 2.095 million USD, down 66.9%; Handicrafts reached 126,617 USD, down 81.83%; Fruits and fruit juices reached 149,315 USD, down 58.9%...

Nghe An textile products exported to the US. Photo by Chau Lan.

Enterprises in the province exporting to the US market include: Prex Vinh Company Limited with textile and garment products, MATRIX Vinh Company Limited with children's toys, An Loc Joint Stock Company and Hoang Gia T&K International Trading Company Limited with various types of stones, Nafoods Group Joint Stock Company with fruits and fruit juices, Ha Duc Logistics Company Limited with dried garlic.

Export turnover to the US market has decreased, mainly because the US market is very demanding, businesses have to overcome many trade barriers such as food safety, registration procedures... That is a difficult problem for businesses in the country in general, not just Nghe An businesses when they want to find opportunities to enter the US market.

According to businesses, it is very difficult for a product to access the US market. Normally, it takes 5 years for a Vietnamese fruit to complete the procedures to enter the US market. Therefore, when accessing the market, businesses need to have a plan to preserve and develop it. In reality, this is the case, but businesses cannot avoid difficulties. There are businesses that regularly export to the US but still encounter problems in this market.

Specifically, goods exported to the United States, arriving at the port, must still be stored in warehouses awaiting quality inspection. Because the results of goods quality inspections that companies conduct in Vietnam are completely worthless when entering this market. There are businesses that have had their goods returned but the reason is unknown; some high-value export items such as textiles have sought export opportunities to other markets such as Korea, China... causing export turnover to the United States market to decrease.

Dried garlic - an export item to the US from Nghe An.

Thus, the market opportunity in the US is still very large, requiring businesses to make efforts and try their best, to improve competitiveness in terms of quality, price and export skills... to be able to survive in this market.

It is known that in the period of 2011 - 2015, the total export turnover in the province had a significant growth, from 483.3 million USD in 2011 to 705.1 million USD in 2015, reaching an average growth rate of 11.14%/year, exceeding 28.2% compared to the export turnover target for the period of 2011 - 2015 of 550 million USD in 2015. In which, the export turnover of goods in 2011 reached 227.7 million USD, by 2015 it reached 463.2 million USD, the average growth rate in the period of 2011 - 2015 reached 16%/year, much higher than the set target of 12.3 - 14.5%/year. Enterprises in the province have exported goods to 96 countries and territories around the world./.

Cao Tam

(Department of Industry and Trade)