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Enterprises in the electric wire and cable industry seek solutions to exploit key export markets

18/05/2022 view

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Export of electric wire and cable contributes billions of USD

Wire and cable products are considered as one of the product groups that contribute significantly to the value of industrial production in Vietnam. According to the General Department of Customs, in 2018, Vietnam's export turnover of electrical wire and cable products reached 1.7 billion USD, up 21% compared to 2017.

At the Electrical Wire and Cable Workshop organized by the Branch of the Vietnam Chamber of Commerce and Industry in Ho Chi Minh City and the American Organization UL (Under writers Laboratories) on April 17, Mr. Vo Tan Thanh, Vice Chairman of VCCI, Director The VCCI branch in Ho Chi Minh City said that despite the sharp increase in export turnover, the competitive pressure in this market is still great and the risks from the trend of trade protection are increasing.

Besides, technological innovations and standards of energy saving and environmental protection have been raised in many countries and regions, forcing manufacturers to compete with each other in equipping with advanced technology. progress to complete the production line.

Currently, Vietnam has over 200 enterprises engaged in the production and export of electric wires and cables, many of which are 100% foreign-invested companies or joint ventures with foreign countries to invest in the production and export of electricity. This product has a large scale and modern technological lines.

In which, the group of exported electric wire and cable products is almost of domestic companies, but the imports of this product group are mostly from foreign-invested companies, accounting for 78.1% of the total. Import turnover of this commodity group of the whole country reached 400.68 million USD in 2018.

According to the assessment of the World Economic Forum, Vietnam's economy is moving from a stage of development with a dynamism based on available resources to a stage of development based on performance. In which, improving productivity and quality is the key factor.

Mr. Vo Tan Thanh, Vice President of VCCI added that, even in the Vietnamese market, to be competitive, "Made in Vietnam" products must also meet increasingly high quality requirements, especially in the context of high-quality products. The social scene and consumers are increasingly concerned about the safety and environmental friendliness of the product

Solutions to access key export markets

When lowering tariff barriers is a necessary condition, conquering non-tariff barriers or technical barriers is a sufficient condition to penetrate large markets. That is the opinion of Mr. Vo Tan Thanh, Vice Chairman of VCCI, Director of VCCI Branch in Ho Chi Minh City.

Mr. Thanh analyzing, understanding and grasping regulations on specialized technical standards is an important first step to help businesses get the right orientation and thereby position themselves in the value chain. and the global supply chain, and at the same time is the basis for gradually upgrading production facilities in the direction of increasing productivity, quality and efficiency.

On the other hand, at present, Vietnam's economy is increasingly participating in the international economic integration process, typically with WTO accession and free trade agreements, which will help expand the economic space. extensive operations for Vietnamese enterprises in particular and foreign enterprises with production and business bases in Vietnam in general, with both opportunities and challenges intertwined.

"Enterprises must master the various regulations and requirements necessary for specialized technical standards for electric wires and cables to be able to access key markets such as ASEAN, the US and Canada," emphasized Mr. Thanh. .

According to Mr. Ton That Kiem, Director of UL Vietnam, businesses need to update information about safety standards in the field of international electric wires and cables, so that they can proactively propose investment plans. , business to meet the growing needs of the domestic market as well as take advantage of opportunities to develop into the global market.

Specifically, Mr. Ton That Kiem cited: "UL certification will help manufacturers compete better based on quality, reputation and repel fraudulent production." Because, according to him, the UL certification mark is not only reputable in the North American market but also in most of Latin America, Europe and Asia. This will help open the door for manufacturers to conquer the global market.

In particular, the company's product safety certification, also helps consumers to choose and use reputable products that have been rigorously tested and certified for safe use, Mr. emphasize.