Many multinational corporations are implementing strategies to shift supply and production chains closer to the consumer market.

The Ministry of Industry and Trade (MoIT) mentioned the trend of moving supply closer to consumer markets to minimise the risks of supply disruption, which was increasingly evident in diversifying the supply in export markets of Việt Nam.

According to the MoIT, multinational corporations are implementing a strategy of shifting supply and production chains closer to the consumer market (Near sourcing) and diversifying the production supply chain instead of just focusing on manufacturing plants in some countries such as China and Việt Nam.

Multinational corporations are focusing on investing in manufacturing plants in countries such as India, Mexico and Brazil, which increases competition in Việt Nam's main export markets and directly affects Vietnamese market share in these markets.

Orders have shown signs of returning but the market is still quiet. This is the reason why many of Vietnamese billion-dollar export industries are at risk of missing their set goals.

Looking at the story of the textile industry, the chairman of the Việt Nam Textile and Garment Association (Vitas) Vũ Đức Giang said that many world buyers had switched to ordering designs instead of giving samples to Vietnamese businesses like many years ago.

This was also a challenge for Vietnamese textile and garment enterprises in switching from processing to designing, said Giang. Besides, green development was also a challenge for the textile industry, he added.

To support the expansion of export markets, the MoIT said it would promote negotiations, commitments and trade links, and sign FTAs and trade agreements with other potential partners including the UAE and MERCOSUR to diversify the market.

For the US market, the MoIT said it would focus on the timely and effective implementation of the project on promoting the work of requesting the US to recognise Việt Nam as a country with a market economy in trade defence cases to facilitate exports of goods to the US; and strengthen information, communication, and dissemination to the business community, industry associations, relevant organisations, and individuals about trade defence laws and trade defence investigation cases. 

Source:Viet Nam News