Implementing the National Program on Trade Promotion in 2022, in order to support Vietnamese enterprises in the production and trading of fashion products (textiles, garments, footwear, etc.) to enhance advertising and searching partners, connecting business opportunities and exporting to African markets, on April 14-15, 2022 Trade Promotion Department coordinated with Trade Offices - Vietnamese embassies in African countries held an online conference on Vietnam - Africa fashion products trade 2022.
With a large population and high consumer demand, while the intra-regional production has not yet developed, Africa is considered a potential export market for Vietnamese goods, including textiles, garments, footwear and leather goods, fashion accessories of all kinds... In many African countries, the textile industry is still underdeveloped despite having an abundant source of raw cotton.
According to Mr. Le Hoang Tai, Deputy Director of the Trade Promotion Department, over the past time, trade turnover between Vietnam and African countries has grown significantly, but it is still not commensurate with the development potential of the two sides.
In particular, although Vietnam is one of the major textiles and garments exporters in the world, the export value of this group of goods to Africa is still quite modest. According to the assessment, Vietnam can completely increase the export of textiles, garments and footwear to Africa, because this product of Vietnam has competitive advantages such as lower labor costs compared to many Asian countries, while good skills, sewing workmanship and high productivity and product quality.
In addition to exporting to this market, Vietnamese enterprises can consider the possibility of investing in some major markets in Africa to take advantage of cheap and available labor and raw materials to produce textiles garments to meet the needs of the host country and for export.
At the conference, Trade representatives of Vietnam in African countries updated information on trends, needs and import policies of fashion items in these countries. According to Mr. Hoang Duc Nhuan, Vietnam Trade Office in Algeria, Vietnamese footwear products have many potentials and opportunities to increase exports to this market. Currently, the domestic supply capacity of the Algerian footwear industry meets about 5% of consumer demand, and the remaining 95% must still be imported from other countries. While Algeria's imports of this product from Vietnam only account for a small proportion.
From a business perspective, Ms. Nguyen Thi Tuyet Mai, Vice General Secretary cum Head of Rep. Office of VITAS in HCMC, said that despite being affected by the COVID-19 pandemic in the past time, the African market for Vietnamese textile and garment products is still very large. The region's economy has grown rapidly in recent years, leading to an increase in people's consumption demands, including textile products. Meanwhile, there are now 43/55 African countries that have joined the World Trade Organization (WTO), so these countries have gradually removed non-tariff barriers as well as reduced import taxes. On the other hand, people in many African countries have sympathy for the people and achievements of Vietnam's socio-economic development. This is also an advantage for Vietnamese goods in general and Vietnamese textiles garments in particular to increase market share in this region.
In addition, the VITAS representative wants African businesses to invest in stages in the green and sustainable production chain of Vietnamese fashion products for cooperation and development. On the contrary, Vietnamese textile and garment enterprises can also increase their import of raw cotton from West Africa, Central Africa... and research to invest in production in African countries to take advantage of raw material sources of these countries.
The online trade conference is also provided with potential information, cooperation opportunities and challenges when trading the fashion field with African countries presented by Mr. Mohamed Kassem - Chairman of the Association of Egyptian Exporters; Mr. Opeyemi Alaran - Acting Chairman of the National Federation of Chambers of Commerce, Industry, Mines and Agriculture of Nigeria... Vietnamese enterprises participating in the Conference enthusiastically exchanged and introduced their potentials and strengths in the production and trading of fashion items to their African partners.
After the plenary session, the Organizing Committee arranged online trading sessions to create conditions for Vietnamese and African businesses to discuss opportunities, cooperation possibilities and export of fashion products and accessories... in the near future.Although the export potential of Vietnam's goods to the African market is assessed to be still large, experts and Vietnamese trade representatives in many African countries recommend: Vietnamese enterprises need to be cautious in trade with African partners. Transaction fraud has occurred. The subject accepts any import offer from a Vietnamese enterprise or the subject offers to export to Vietnam at a low price, then asks to pay a fee/deposit and then takes over… In addition, in cooperation with African businesses, Vietnamese enterprises need to pay attention to business practices, time, especially language, so that they can adjust their plans accordingly.
Source: Industry and Trade Magazine
