2 days ago
Vietnamese enterprises eye markets in Middle East
Vietnamese steel exporters alone faced 32 trade defence investigations from 12 markets last year, nearly double the figure in 2023. — VNA/VNS
HANOI: As global trade faces growing uncertainty and tariff risks, particularly from the United States, Vietnamese businesses are increasingly turning to the Middle East as a stable, untapped export market.
According to Pham Binh An, deputy director of the Ho Chi Minh City Institute for Development Studies, the new US tariff policies are adding pressure on countries like Vietnam, prompting many firms to seek markets that are less exposed, such as the Middle East.
Vietnamese steel exporters alone faced 32 trade defence investigations from 12 markets last year, nearly double the figure in 2023.
Additionally, the European Union's Carbon Border Adjustment Mechanism, which came into force in October 2023, demands strict carbon reporting from exporters.
Against this backdrop, businesses like Secoin, a leading manufacturer of premium decorative products, are diversifying away from traditional markets.
The United States once accounted for over 50% of the company's export revenue, but it is no longer a top priority, according to Secoin chief executive Vo Thi Lien Huong.
Secoin is restructuring to spread risks and avoid putting all eggs in one basket.
Secoin now sees the Middle East as a key growth market, given its strong demand for artistic, highly personalised products, an area where the company excels.
Secoin is investing in research to develop exclusive high-end lines for the region.
The recently signed Comprehensive Economic Partnership Agreement between Vietnam and the United Arab Emirates in October 2024 is expected to further boost trade and investment opportunities in the region.
Other Vietnamese businesses are also gaining presence in the Middle East.
Dony Garment Co, for example, has maintained an annual export growth rate of between 15% and 20% to the region, even without formal trade incentives. — Viet Nam News/ANN
