News

HOW DO VIETNAM ENTERPRISES HANDLE HIGH DEMAND AND STRICTER CHINA’S PROMISING MARKET?

After nearly three years of closing for anti-Covid pandemic with strict policies, China just reopened in early Jan 2023.  For trading between Vietnam and China, according to statistics from China Customs, the total import and export turnover between Vietnam and China in the first two months of 2023 reached 30.3 billion USD, down 5.3% over the same period last year.  Vietnam’s export turnover to China reached 11.57 billion USD, down 4%; Vietnam’s import turnover from China reached 18.69 billion USD, down 6.1%.

So far, Vietnam traders have considered China as one of the biggest markets for both import and export, including official and unofficial trades via borders by any means of transportation.  However, the situation will be more challenging for two main reasons:

• First, the anti covid policies are different among all parts of China, some are open, and some have not that still need specific documentation and vaccination certificates.

• Second, a more difficult one, China has become richer and has more requirements for high-quality, and safer products imported to their market with a lot of stricter controlled measures to be applied for importation. 

From many of our customers, Voltrans Logistics has received advice that any Vietnamese enterprises who want to expand their market and take advantage of the market’s market space need to prepare and research the market methodically before officially bringing their goods into new market areas in China. Because each market area in China has different consumption habits, needs, and tastes. At the same time, constantly improve the quality of agricultural, forestry, and fishery products and food hygiene and safety. Strengthen control of residues of pesticides, food additives, and dangerous bacteria on food products, and apply quality management system according to ISO, HACCP… to meet requirements and standards for importation.

Besides, traders or factories should take advantage and exploit the Chinese market through e-commerce channels through association and cooperation with Chinese enterprises to set up warehouses, and to take measures to handle intellectual property violations in growing areas, packing code, anti-counterfeiting, and imitation goods. There are measures to provide technical support when the Chinese customs authority comes to inspect the plantations to issue codes. On the other hand, fruit and vegetable enterprises research the possibility of investment or investment cooperation with Chinese enterprises in the field of fruit and vegetable processing, on the one hand improving the export value content, on the other hand catching up with the trend. The market for processed fruits and vegetables has continuously increased in recent years.

Therefore, we – Voltrans Logistics – are working hand-in-hand with customers for updated information and experience of the markets like China so that the goods go in or out smoothly.  We need to do it both ways among our Vietnamese enterprises for the common growth of our community.

 By Thomas