Don't 'put all your eggs in one basket'

Talking to the director of a furniture export manufacturing enterprise in Binh Giang district (Hai Duong), he could not hide his worries about the impacts of the US imposing high tariffs on many Vietnamese goods, including wooden furniture.

The company has been exporting furniture to the US for more than 10 years, but recently he has had to be more careful in preparing documents to trace the origin. He shared that it was clear that the factory was designed and manufactured by himself, the wood was purchased in Yen Bai, the paint was from Bac Ninh, but recently they still needed more evidence that "everything was really made in Vietnam". The reason was because the partner suspected that Vietnam was a place to "avoid" tariffs from third countries.

The US is Vietnam's largest export market but has recently tightened trade defense measures. They not only impose high tariffs on some goods originating from third countries but also increase investigations into the act of bringing goods from other countries into Vietnam, changing packaging and labels, labeling them "Made in Vietnam" and then exporting them to the US.

Without good control, Vietnam could become a “disguised transit station”, caught up in trade investigations and sanctions. The consequences would not only affect one business or one industry, but could affect the entire export market. The reputation of Vietnamese goods could easily be questioned.

Dependence on one or a few key export markets is becoming a major risk for Vietnamese businesses in general and Hai Duong in particular. Unexpected changes in taxes, technical standards or regulations on the origin of goods from markets can immediately cause local businesses to have to return goods, lose contracts due to less competitive goods, or even get involved in trade lawsuits.

To avoid “market disruption”, the key solution is to proactively diversify export markets. We cannot continue to “put all our eggs in one basket” but need to expand our distribution system to new markets such as Asia, the Middle East, Africa or Eastern Europe.

To do that, Hai Duong enterprises need to proactively research niche markets, invest in trade promotion, participate in specialized fairs and upgrade cross-border e-commerce capacity.

Local authorities need to play the role of “midwife” in the integration process of enterprises. They can study and build export market maps by industry, clearly indicating potential markets by specific product groups. Organize practical training programs on international trade, support costs for e-commerce development, and build export region brands.

Only when Hai Duong enterprises equip themselves with a proactive market mindset, and the government plays an effective role in creating, guiding and supporting, will the economic integration process be truly sustainable. Diversifying markets is not only a wise choice but also a vital requirement so that enterprises are not caught up in unexpected fluctuations from the outside.

Along with that, to avoid being 'collateral damage' due to fraudulent origin of goods, it is necessary to monitor the product value chain, processing level, and actual localization rate.

Many Hai Duong enterprises have initially applied electronic diaries to monitor the entire process from raw material import to processing, especially strictly controlling inputs from the beginning. That is the right direction.

At the conference with ministries, associations and businesses on April 7, Prime Minister Pham Minh Chinh emphasized that in challenges there are always opportunities and this is the time for Vietnam to restructure production, improve internal capacity, do real work, sell real work, and prove real work. We must rise up strongly, not be allowed to weaken.