Foreign-invested enterprises aim to export deep-processed products.
Despite the ongoing difficulties and challenges in the business sector in general and FDI in particular, the focus has been on sustainable and diversified exports with a focus on deep processing.
According to the Ministry of Industry and Trade, although facing difficulties after the pandemic, and the Russia-Ukraine conflict has yet to end, while China’s market is opening up, Vietnam’s exports to almost all markets have increased. Only in the EU bloc, there is a positive shift and growth, not only focused on major markets, EU gateways such as Germany, the Netherlands, France, but exports are gradually being pushed towards smaller markets, niche markets such as Northern Europe, Eastern Europe, and Southern Europe.
According to the Vietnam Association of Seafood Exporters and Producers, although Vietnam is a large exporter, it does not yet have an export strategy for deep-processed or organic products. Therefore, in the current context, in order to exist, businesses must have a strategy to shift toward exporting deep-processed products. To do this, in addition to capital, businesses also need to consolidate resources, apply world standards to penetrate deeper markets. This is also the only way to assert the capacity of each enterprise.
However, there are still many businesses looking for their direction. Nestlé Vietnam has recently announced an additional investment of $132 million at the end of 2021. The company’s goal is to double the capacity of high-quality coffee processing, serving the domestic market and exporting products to more than 25 countries, including difficult markets in Europe, Japan, and the United States.
Specifically, Nestlé Vietnam is expanding its high-value product production lines such as Nescafé Dolce Gusto coffee pods, freeze-dried coffee, etc. Among them, some coffee product lines that were previously only imported from Europe are now being produced in Vietnam.
To increase the value to approach and exploit difficult markets, for example, the Japanese market, Nestlé Vietnam mainly exports raw soluble coffee, and decaf raw coffee beans (coffee beans separated from caffeine). However, from 2020 to 2023, the products exported to this market will be diversified, including Maggi soy sauce, MILO oat drink powder, freeze-dried coffee, Nestea lemon tea, Nescafe 3in1 instant coffee.
The company also proactively develops products according to the specific requirements of each market to increase export value, meet strict standards for quality, and food safety for different customer groups.
Ms. Nguyen Tran Hoang Yen – Supply Chain Director of Nestlé Vietnam said: “Aiming at ensuring sustainable exports and increasing value for products “Made in Vietnam”, the company constantly invests in technology, value chain, and product diversification to meet standards for the quality, environment, as well as specific requirements of difficult markets. In 2023, the company’s exports are expected to grow significantly.”
Therefore, to create added value for goods, ensure sustainable exports to difficult markets, Vietnamese businesses, especially FDI enterprises, have actively grasped and adjusted their production and business plans to timely adapt to the new requirements and regulations of the market to survive in the context of the global economy facing many difficulties and challenges after the pandemic…
Source: Tap chi Tai chinh