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| Accustom to new trade affair |
| 2008 saw export turnover of Vietnamese products to America at USD 12 billion, about 20% total export turnover. Vietnam with strength in textile, furniture, and seafood, etc. becomes one of leading countries exporting to America |
However, due to the implement of new acts of import of America we are requested to reconsider seriously trade affair with the country.
More and more difficult
In explaining the implement of new acts of import, Director of Bureau of Domestic Security of the United States, Janet Napolitano, says “America should have a secure strategy in order to balance trade affair with security, we, therefore, approves some acts and documents relevant to product import. There are at least 3 acts which are Farm Act (with new regulations), amended Lacey Act enforced since May 22, 2009, and Consumer Goods Safety Act, become effective and remain in future. Accordingly, The USA will intensify control and evaluate fields relevant to products of textile, intellectual property, anti-dumping, anti-support, etc.”
These Acts will be widely imposed on ¾ of total products originating from Vietnam imports into America. Products which are strongly influenced are tra and basa catfish, furniture and good products, textile and footwear. For regulations relevant to seafood in particular, producers of the country are seeking to lobby from many parts with a hope that America would apply obligatory classification due to quality which is manifested right on product packing. It means that there will be an increase in manufacturing cost leading to an increase in product price and harsh competition between rivals.
Similarly, due to new regulations of Farm Act of 2008, importer has to meet the demand of detail import declaration. This Act comes from assertion of American environmental organizations about 10% wood products import into America annually, costs about USD 3,8 billion coming from illicit cutting.
Due to some acts, penalty is strict and changes the demand of buyer. For example of Lacey Act, if importer deliberately commits in trading illegal wood products, the fine is USD 500.000 for an organization and USD 250.000 for an individual; the penalty is possibly up to a 5 year prison sentence and confiscating all products. In case of wrong declaration, the penalty is similar or civil fine up to 100.000 USD.
Wavering in enterprise’s determination?
Vietnamese enterprises have different responses against the news. Deputy Director of Truong Thanh Wood Industry Company, Ngo Thi Hong Thu, says “Imminently our export business are restricted by 2 terms are FFC certificate forcing us to pay more 50USD/m3, and wood source meaning not all type of wood are permitted to import. For instance, we can not export if our products made from bead-tree which is forbid due to their Act. Not including the fact that Vietnamese enterprises’ ability is less competitive than other wood product export countries.” However, Thu says her company is ready to deal with the situation because “We have thorough knowledge about this so that we have produced according to COC process meaning trace back to origin since 2002.”
However, for small scale export companies, these changes is a remarkable barrier since they are used to buying unknown origin wood, even illicit wood to ensure competitive price. Now, in order to meet new regulations, they have to reform their business method which is not at all easy in a short time. Nguyen Thanh Bien, Deputy Minister of Industry and Commerce, says the Government is going to have consideration in response to new regulations which is unfair and inappropriate with international trade customs.
In order to export to America successfully, American experts note Vietnamese enterprises of thorough study on new regulations as well as acts, and more attention to steps in supply chain, and right declaration of products origin.
Obviously there are lots difficulties brought along with these changes which should be optimistically considered, from another perspective, as opportunities for enterprises to get used to new business thought, new trade affair. This will be benefit in future when the export market becomes more and more difficult and competitive.
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| (Source: KTNT) |
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