Green Export - Key for Enterprises to Thrive Against Challenges
|Due to customers' shift to green consumption, manufacturing enterprises have to transform to meet their new needs and tastes. (Photo: PLXH)|
Revenue from export decreases by US$ 3,95 billion
According to the General Department of Vietnam Customs, total state revenue from export in January reached appropriate VND 25.000 billion, decreasing by 42%, equivalent to a loss of US$ 15,53. By the end of January 31, state budget revenue from import and export earned VND 24,852 billion VND, reaching 5.8% of the plan, decreasing 42.3% over the same period in 2022. The total export value was estimated at US$ 25.08 billion, down 13.6%, equivalent to US$ 3.95 billion. Compared to the same period in 2022, January's import and export value decreased by 25.01%, equivalent to a loss of US$ 15.53 billion.
|GEA Group's aseptic production line of is installed at Tan Hiep Phat's factory. Photo: THP|
Many experts say 2023 will continue to be a difficult year for Vietnam's exports because challenges posed by the global economic situation in 2022 are likely to last until the end of 2023. Global demand has dropped significantly due to the rising difficulties in the global economy, especially in the major economies, which are the world's leading import markets. Global economic growth is forecasted to decrease from 3.4% in 2022 to 2.9% in 2023. In 2023, the biggest challenge for Vietnam is the decline in world demand.
Speaking at a conference to promote domestic production and consumption and expand export markets in 2023, Minister of Industry and Trade Nguyen Hong Dien said in 2023, the difficult situation was forecast to continue. Global growth is slowing down significantly, with a predicted growth of only 1,7%, due to complicated inflation and high-interest rates. The Russian-Ukrainian conflict has reduced investment and disrupted raw material supplies, reduced business and consumer confidence globally, and posed more difficulties for production and import-export activities. Domestically, although partly recovered, purchasing capacity is still weak and has not yet stimulated production, investment, and consumption. Production and export are still facing difficulties because of the decrease in new orders, and high production costs due to high prices of raw materials, fuel, and logistics costs. Domestic enterprises still find it difficult to access capital, while interest rates are high.
|GEA Group's aseptic production line is installed at Tan Hiep Phat's factory. Photo: THP|
Facing this situation, according to experts, green production and green export is the answer for Vietnam's export goods. To avoid being left behind, Vietnam needs to develop green production to meet the market's strict technical requirements. Minister Nguyen Hong Dien said: "Vietnam needs to change its mindset and pay attention to the "greenness" of the international trade production and supply chain to meet the market's strict technical requirements."
Enterprises "transform" to serve green production
Green living and consumption are becoming a trend in many countries around the world. Due to customers' shift to green consumption, manufacturing enterprises have to transform to meet their new needs and tastes. According to a 2019 consumption trends report, most consumers are willing to pay more for food packaged with eco-friendly materials, many are willing to pay 10% more for green products. This trend also poses new problems for Vietnamese businesses in the domestic and foreign markets.
Taking the lead in green production, in 2007, Tan Hiep Phat General Director, Tran Qui Thanh made a bold and revolutionary decision for his enterprise and also for the Vietnamese beverage market, which is importing Aseptic technology and the leading modern central processing system in Europe to develop healthy drinks.
|Product transportation and storage at Tan Hiep Phat. Photo: THP|
At that time, some beverage businesses failed to produce bottled instant tea. Though warned by many people in the industry, the leader of Tan Hiep Phat was still determined to produce instant bottled tea. To realize Thanh's goal, Tan Hiep Phat "played big" as it imported the first Aseptic technology in Vietnam with a value of about USD 30 million and determined to build its own PET bottle factory.
Compared to other technologies, Aseptic retains the nutritional value, deliciousness and vitamins and minerals in the product. The product solution is ultra-fast UHT pasteurized. The sterility properties are increased 6 times (to reach the maximum level) at the filling and capping stages through the following factors: sterile bottles, sterile caps, sterile water, sterile products, and sterile extraction media, all together create pure products, retain nutrients without the use of preservatives.
With Europe's leading Aseptic technology, Tan Hiep Phat has created many clean and green beverage products loved by tens of millions of consumers. Many of its products have become national brands, the pride of Vietnam such as Dr. Thanh Herbal Tea heat, Zero Degrees Green Tea, and Energy Drink.
Besides Tan Hiep Phat, many Vietnamese enterprises are aiming for green products such as Vinamilk, and TH True Milk. Their green products have gradually won the trust of domestic and abroad consumers. However, most businesses in Vietnam have just started their journey. According to a survey by the Ho Chi Minh City University of Technology, up to 70% of enterprises surveyed in Ho Chi Minh City have not heard of Vietnam Green Label certification; more than 50% do not care about climate change; 60% are not willing to invest in green products.
At the "Green export promotion" forum, Minister of Industry and Trade Nguyen Hong Dien emphasized that green growth, green development, and circular economy are becoming global trends. They have been forming a new "game rule" on trade and investment. In that context, in order not to be excluded from the game by the high environmental and social standards set by import markets, exporting countries, including Vietnam, need to change their thinking and move towards green production, and green export.
Speaking at a conference to promote domestic production and consumption and expand export markets in 2023, Director of the Europe-Americas Market Department, Ministry of Industry and Trade, Ta Hoang Linh said aiming at green products, and environment protection would create a competitive advantage for Vietnam's exports in the future considering that the demand for these products in Europe and Americas is increasing and environmental protection policies in different countries were gaining more focus. If there is a methodical and appropriate approach and penetration, Vietnamese goods can promote their competitive advantages and increase their presence in the global markets.
Thus, in the current difficult economic situation, in order not to be excluded from the "game," Vietnam needs to develop its green production to meet the market's strict technical requirements. Green production and green export are key for businesses to thrive above challenges.
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