Explore Opportunities To Export Vietnam’s Agricultural And Aquatic Products To USA

Export market with great potential for Vietnam’s agricultural products, seafood

The U.S economy has been a large, diverse and attractive market for all exporting countries, including Vietnam. As a great consumer market with 322 million people and USD 18 trillion (GDP),  the demand in imports of agricultural products is very great.  USA is the leading country in import of agricultural products in the world,  USA spends around USD 10 billion on importing vegetables, fruits; around USD 3.5 billion on importing coffee; around USD 9 billion on importing rubber; around USD 2.5 billion on importing kinds of meats; around USD 1.5 billion on importing products processed from cereals.

The trade relation between  USA and Vietnam has developed rapidly both in size and value. As of this moment,  USA is the second largest trading partner and the largest export market of Vietnam. In 2015, Vietnam’s export value to the US market is USD 30.6 billion/year, of which export value of Vietnam's agricultural products gained to USD 2.9 billion. According to statistics from the General Administration of Customs for the first 6 months of 2016, total exports of agricultural products to the US market reached USD 1.54 billion, increased by 12.9% over the same period last year. With this growth rate, Vietnam’s agricultural products are expected to be exported to the United States, reached USD 3.3 billion, increased by 13.8% compared to 2015.

Products

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Fresh Coffee

200,137

305,241

291,520

257,021

360,129

487,494

600,938

467,870

493,744

356,968

Meat products

624

488

424

150

231

371

6,350

5,444

269

98

Fresh / frozen fruits

3,917

5,672

8,351

5,018

7,278

10,987

11,635

11,936

14,234

19,409

Vegetables

10,238

9,817

8,637

8,862

8,517

8,778

9,406

13,433

16,995

16,020

Nuts of all kinds

168,734

222,796

277,595

258,571

352,188

410,823

400,062

527,162

634,105

830,706

Vegetable oils, oilseeds

125

103

83

189

291

472

300

548

512

13,395

Tea, spices ...

38,980

32,196

55,019

61,385

70,035

135,847

110,862

189,479

297,114

309,785

Grains animal feeds

265

342

1,202

20,192

9,104

12,607

28,766

31,600

39,612

38,561

Fish, shrimp

653,435

697,581

766,338

680,728

873,156

1,071,390

1,123,935

1,344,674

1,640,744

1,341,720

Planting materials, livestock

689

483

1,548

1,304

1,760

2,771

3,399

3,105

2,713

3,177

Wood

460

485

1,386

360

125

358

320

56

1,068

1,063

Plywood, veneer

2,134

2,782

3,511

4,836

6,080

6,558

11,135

20,465

27,938

31,670

Agricultural Machines and Equipment

2,794

2,606

2,637

1,446

2,587

4,577

6,585

6,814

9,065

16,576

Shoes

350,124

390,476

502,162

541,363

758,002

1,007,762

1,059,063

1,238,618

1,707,822

2,151,972

Medicine

51

264

507

2,590

4,836

3,553

7,067

5,474

1,875

4,999

TOTAL

8,566,664

10,632,820

12,901,098

12,287,816

14,867,856

17,487,840

20,267,677

24,651,036

30,615,564

38,019,696

Source US C​ensus

Textile product is still the highest export turnover around 6.3 billion USD, accounting for 33.4% of the total value of exports to this market. Besides textiles, 4 other sectors are also exported to the United States of America valued 1 billion USD or more, including: footwear’s export turnover is nearly 2.36 billion USD, telephones and components’export turnover is nearly 1.53 billion, computers, electronic products and components’s export turnover is more than 1.5 billion USD, wood and wood products’s export turnover is nearly 1.45 billion USD. Pangasius product is considered as a commodity with high export turnover of Vietnam in the United States of America, octopus and squid products exported to  USA, valued 2,566 million USD in the first seven months of 2015, increased by 12.6% compared to the same period in 2014. The export turnover to the United States of America is 1.2% of total export value of squid and octopus in Vietnam.

Interestingly, opportunities for exports from Vietnam’s  main and “traditional” products, such as textiles, footwear, wood and wood products, seafood products, handbags, suitcases, hats and agricultural products and seafood "emerging" of niche markets are also increasing such as organic agricultural products, vegetable oils and oilseeds, tea, spices, planting materials, animal feed, plywood , medicines, particularly from natural plant sources. Specifically, Vietnam’s organic products certified from USDA (USA) or EU including cassava, coconut oil, fruit drinks, rice, fruits and dried vegetables including shrimp and fish are gradually penetrating "more easily" when meeting the quality standards of this discerning market.

According to Mr Nguyen Lam Vien, Chairman of Vinamit, USA market  is in high demand of fruits and vegetables  which have high quality and focus on health care  issue. That is the reason that there is around 10-15% of products meeting USDA organic standards are available in many popular supermarkets in the US. It not only aims at consumer segment  concerning high quality, but also pay attention to the segment of middle-class consumers concerning to health care. He also says that once our products are accepted by big markets like USA, Japan, Europe, our products won’t be produced enough to be sold. Moreover, they are willing to pay for products with high reputation, brand and high quality.

There are many opportunities but there are also many challenges

 USA is the largest market all over the world. However, besides the attractions, the competition of exports in this market has made USA market becomes difficult  for other countries to enter . Indeed, in Mekong Connect Forum - Ceo Forum 2016 (2nd) took place on October 26th, 2016 in Can Tho City (ww.mekongconnect.vn), Mr. Herb Cochran, Executive Director of American Chamber of Commerce in Vietnam (AmCham Vietnam) says that there are many reasons that make The United States of America strengthen quality standards and imported food controls. Hence, the US Law on FDA Food Safety Modernization Act (FSMA) to create multi-layered system of regulations including manufacturers, importers, third parties, foreign management agencies and FDA. FSMA is the food control measure when food has not been entered into  USA, docked at ports of USA and circulated in the US market. This leads to  enhance the controling of the food safety system  for exporting countries, including the system of administration regulations  for commodity supply chain from exporting countries. Of course, thanks to such higher technical barrier of import quality standards, Vietnamese enterprises will find it more "difficult"  when wishing to export products to  USA in terms of limited exporting capacity including finance, humans, market information and strategies of penetration into the US market. For agricultural products, manufacturers need to invest in quality, remove chemical residues, use clean soils, good varieties to reduce interference of inorganic fertilizers, pesticides and growth stimulants. Instead, they should apply methods of organic farming or natural farming. According to experts, export to the US market still faces many difficulties which are derived from enterprises themselves. Particularly, exporting capacity of  Vietnamese enterprises is weak; export competition with other countries in the US market is struggling; costs are high and time of transportation is long; the commercial legal system, technical barriers and strict food safety  standards…

Bryan Phan - Director of 40hrs- HR consulting service provider (USA) says the US market is still great potential for Vietnamese enterprises to exploit. But a sad reality that many Vietnamese enterprises are still lack of information and have not thoroughly understood this market and not yet confirmed the position of Vietnamese goods in this market, which lead to the unfortunate loss when exporting to USA. Mr. Bryan emphasizes that the most important thing is that enterprises should be aware of the advantages and disadvantages when exporting goods to USA in order to offer reasonable solutions to take advantage of the opportunities, overcome difficulties to achieve ultimate  target is to conquer and stay on this potential and great market.  Besides, when finding out defective products, questions or complaints, most the US companies do not want to call Vietnamese exporters at 12:00 a.m. in Vietnam (corresponding to office hours at USA). What they want is that Vietnamese enterprises should place representative offices in USA to solve all troubles incurred during the transaction. Mr. Bryan Phan recommends Vietnamese enterprises can choose the consulting firms or services to represent them in USA.

The US law is quite strict and if exporters do not learn or hire the private law firms, they will be easy to breach the law. In order to put products into this market, enterprises should follow 2 steps: directly or through importers to send the control programs on food processing for FDA to review and license. Next, enterprises should be recognized at the national level through conclusion of memorandum between FDA and the state appropriate authorities on safety controls in the exporting countries. After obtaining the foregoing required papers, enterprises can put products into this market.

In recent years, many Vietnamese enterprises like Kem Nghia, Hapro, Trung Nguyen Coffee, Vinacafe, Vinamit, Tai Vuong rice, Loc Troi rice, Mekong coconut milk, Luong Quoi (coconut oil), G.O.C Food have actively participated in exhibition programs, Food fair weeks in USA to seek export opportunities, market penetration by opening representative offices in USA, looking for distributors / retailers to develop systems of distribution and retail in USA.

Penetrating & exploiting market potential through consulting services & business  matching

Besides trade promotion networks of the state system, the role of the private trade promotion units is  developing and significantly contributing to business performance for the exporting business community. If Vietnamese enterprises have not had divisions and resources specialized in export, enterprises can seek external supports from specialized units. As a leading expert on the US investment promotion for more than 7 years of operation, USIS Group expands its operations into the field of business investment L1, real estate business, trade promotion through its affiliate,  USIS Consulting (www.usis-consulting.us) in order to complete USIS Group vision and mission: connection, companion and support of international integration for individuals and enterprises in the country and a bridge to promote and facilitate the relation of Vietnam - USA in the fields of education - trade & investment. USIS Consulting is positioned as a reliable Resource as a "one-stop connecting and developing business " through trade promotion and investment between USA and Vietnam for individuals & enterprises.

Thanks to a team of leading experienced consultants in international business, a team of pro- reputed international business partners in the world, a system of 5 offices spreading across major cities in Vietnam and in USA, USIS Consulting offers  tailored services consistent with practical needs and experiences of each enterprise in each specific stage: from  initial basic information and guidelines to selection and capture of information to invest or penetrate into the market; or when enterprises need active supports for business development or investmentin the US market.

At present, if Vietnamese enterprises want office services (business center), commercial representatives, business investment with L1 visa or want trade promotion in the US market, please contact us for special promotions during the opening time in USA.

 Event of opening of USIS Group office in Can Tho City

" USIS Group, NEW VISION - NEW MISSION "

at USIS Group Office, 269 30/4 Street, Xuan Khanh, Ninh Kieu, Can Tho

at 09: 30 - 13: 00, Saturday, December 10th, 2016

an exchange program with special topics associated with private counseling in order to serve individuals and enterprises in the Western provinces:

-          “Potential business development in USA "by USIS Consulting (www.usis-consulting.us), specialized in consulting in export promotion and investment: introducing opportunities to open offices in" Business Center "of USIS Group in USA at special rates; consulting on L1 visa for business development; how to penetrate the US market and investment opportunities in real estate in USA etc.

-          "Fulfill  Your  American Dreams" of USIS Education (www.usis-edu.us): introducing premium program "USIS Excellency”, for students who want to pursue dream of studying in the top universities in USA such as Harvard, Columbia, Princeton, Cornell, MIT…

USIS is willing to listen and provide counseling services matching your individual needs from initial orientation consulting, providing detailed information to active supports so that you can settle, study, business and invest successfully in USA.

As limited seats, there are only 50 seats, please make early reservation at the link below:

http://bit.ly/2gKovPI

We will contact you after receiving your reservation to confirm your participation in the workshop.

If any demand or question, please contact:

Office in Can Tho City: 269, Street 30/4, Xuan Khanh Ward, Ninh Kieu District

Tel: (84) 710 389 8668

Office in HCMC: CJ Building, 7th Floor, Room 701, 6 Le Thanh Ton Street District 1

Tel: (84) 8 3822 0366

Office in Hanoi: Melia Hotel, 8th Floor, Room 804, 44B Ly Thuong Kiet Street, Hoan Kiem District

Tel: (84) 4 3824 6959

Office in Da Nang: 89 Thai Phien Street, Hai Chau District
Tel: (84) 511 3664 679
Office in U.S.A: 1122 Bristol, 2nd Floor, Costa Mesa, CA 92626
Tel: (1) 855-837-4680