France an untapped market

Nguyen Canh Cuong

France is currently one of Viet Nam's four largest European Union trading partners. Viet Nam News reporter Thu Tra spoke to Nguyen Canh Cuong, deputy head of the Ministry of Industry and Trade's European Market Department, about the export opportunities awaiting Vietnamese firms in the French market.

What has Viet Nam's exports to France looked like during the past 10 years?

France, a stable market with a large purchasing power, is an excellent potential market for Vietnamese businesses in the EU. During the past 10 years, Viet Nam's exports to France have experienced an annual growth rate of 7.2 per cent, from US$380 million in 2000 to $1.1 billion last year.

Being one of Viet Nam's most important trading partners in the EU, exports to France has significantly influenced Viet Nam's export growth throughout the entire area, witnessing a 20 per cent increase to $15 billion last year.

This year, we plan to export $1.12 billion worth of goods to the market, an 11-per-cent year-on-year increase.

Under what advantages can Vietnamese companies export to France?

The two countries have inked several bilateral agreements on double tax avoidance, maritime transport, aviation and tourism that better facilitate Vietnamese exports to France.

Vietnamese goods have managed to enhance their presence in France partly due to the fact that more French tourists have visited Viet Nam. Tourists use Vietnamese-made products during their trips and continue to do so when back home.

As part of its national trade promotion programme, the Ministry of Industry and Trade has brought many Vietnamese firms to France in order to examine potential market opportunities as well as to attend fairs and meetings aimed at establishing new trade links.

Many French companies have in turn visited Viet Nam in order to establish factories for re-export to France and other countries.

Viet Nam is currently home to 240 French businesses which have helped create 24,000 jobs.

The Viet Nam Trade Office in France has played an important part in promoting trade between the two nations. The EU's Generalised Systems of Preferences (GSP) granted to Viet Nam has helped some of the country's export items enjoy low export tariff.

What potential difficulties might Vietnamese exporters face?

Similar to other EU countries, France is an open market. Many strong exporters, including China, India, Thailand and Brazil, are shipping similar products to the country. Harsh competition is unavoidable and Vietnamese firms have no choice but to sharpen their competitive edge and improve the attractiveness of their products in order to foster increased exports to the French market.

However, France has a healthy competitive environment. Enterprises can affirm their presence within this market if they pay sufficient attention to improving their competitiveness.

French consumption tastes, in terms of textiles, footwear, fine arts and handicrafts differ from other EU countries. The French have stricter demands on design and quality. Vietnamese firms need to study French demand in order to draw up suitable business strategies.

Differences in trade laws could be an additional risk to effective trade.

What exports prospects lie ahead?

I believe that there are positive prospects on the horizon. A possible future free trade agreement between Viet Nam and the EU could assist in opening up new opportunities for local companies. — VNS