Strategies to help small and medium-sized businesses expand their export business

DNHN - Vietnamese small and medium-sized export businesses continue to struggle with finding clients, getting funding, and satisfying import market demands. They are also less competitive...

According to Economy, Ms. Tran Thi Thanh Tam, Director of the Centre for Supporting Small and Medium-sized Enterprises (Federation of Vietnam Chamber of Commerce and Industry (VCCI)) stated at the recent conference "Solutions to promote import-export growth for Vietnamese small and medium-sized enterprises" that Vietnam has enormous potential and opportunities to develop export activities when it deeply integrates into the global economy and signs numerous new generation trade agreements, along with the development of the 4.0 industrial revolution, the digital transformation process, and the strong development trend of e-commerce...

In actuality, Vietnamese export businesses still face numerous obstacles in the form of competitiveness, product quality, and legal requirements that must be met in both import and export markets.

In addition, there are challenges in acquiring clients, breaking into untapped markets, and obtaining funding for investments in factories, machinery, equipment, and technological innovation to raise output and quality. Product quality satisfies export and import demand.

Furthermore, the export growth of Vietnam's small and medium-sized businesses has reached a high speed, but Mr Nguyen Van Hoi, Director of the Institute of Industry and Trade Strategy and Policy Research stated that it is not truly sustainable in the medium and long term. Stable growth in exports can be impacted by a multitude of potential risks.

However, small and medium-sized businesses' export competitiveness is still low and is only gradually improving, particularly for manufactured and processed goods. The requirements are not met by the innovation content of exported products. Small firms do not have a systematic business plan aimed at taking advantage of comparative advantages in international trade, and they are weak in management and strategy.

According to Ms. Tam, "finding customers" and "access to credit" are two crucial problems that must be fixed to support export growth for small and medium-sized businesses. Enhancing the capabilities of small and medium-sized import-export businesses, creating top-notch human resources to fulfil the demands of technological innovation, production and business procedures, and price chain participation are also critical. worldwide norm.

As per Mr Hoi's assertion, it is imperative to fortify corporate strategic management, proficiently execute the establishment and modification of production and business strategies linked to the demands of export markets, and guarantee sustainable development.

Create market development plans as soon as possible for small and medium-sized businesses for every product, making sure that benefits are highlighted and that agreements made in bilateral, regional, and multilateral free trade agreements—especially those about newer generations of FTAs—are carried out effectively.

Improve value and export competitiveness by strengthening small and medium-sized businesses' identity, brand, and product quality through research and application of cutting-edge technology and techniques.

To identify important and prospective markets for the export products of small and medium-sized businesses, marketing and export promotion initiatives must be supported by market segmentation research. This will help in the identification of import partners. intended password

However, to meet the demands of technological innovation, production, and business processes, as well as to participate in the global value chain with a variety of high-quality products, small and medium-sized businesses should concentrate on developing high-quality human resources. The superior, worldwide calibre of service.

In terms of credit and financial policies, mechanisms and regulations are required to make good use of low-interest loans and loans under preferential arrangements to significantly boost investment capital for the development of export-oriented businesses. modest and middling. For small and medium-sized businesses, investing in technological innovation is a necessary investment that requires research and additional mechanisms to support loan interest rates.

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