Mind Connector participates in a workshop introducing standards and market conditions in the Asia-Africa region: Promoting exports to the Indian, Indonesian, and Malaysian markets. The event is organized by the Asia-Africa Market Department of the Ministry of Industry and Trade, in collaboration with the Ho Chi Minh City Institute for Development Research and International Integration Center in Ho Chi Minh City.
On the afternoon of December 21, 2023 at the Ben Thanh meeting room, Muong Thanh Grand Saigon Hotel, the Ministry of Industry and Trade, the Department of Asian and African Markets in conjunction with the Ho Chi Minh City Development Research Institute and the Center for International Integration held a meeting. Successfully organized the SEMINAR program INTRODUCING STANDARDS AND CONDITIONS OF THE ASIA-AFRICA REGIONAL MARKET: PROMOTING EXPORT TO INDIAN, INDONESIA, MALAYSIA MARKET.
The potential of the Asia-Africa market
In 2022, the markets of Asian and African countries accounted for about 68% of Vietnam’s total import and export turnover. To boost the export of goods to this region, besides factors related to the quality of goods, businesses need to pay attention to and master the requirements of import-export procedures, logistics, trends, and consumer preferences…
To support business associations, industry associations, and import-export enterprises in updating regulations in the markets of Asian and African countries, the seminar was organized with the participation of high-ranking leaders, Mr. Nguyen Phuc Nam, Deputy Head of the Asia-Pacific Market Department, Ministry of Industry and Trade, Mr. Huynh Minh Vu, Deputy Director in charge of the International Integration Support Center in Ho Chi Minh City, Dr. Trinh Thi Thanh Thuy, Former Deputy Director of the Institute for Strategic Research and Policy, Ministry of Industry and Trade, along with Commercial Counselors of Vietnam (CC VN) in India Mr. Bui Trung Thuong, CC VN in Indonesia Mr. Pham The Cuong, CC VN in Malaysia Mr. Le Phu Cuong, CC VN in the UAE Mr. Truong Xuan Trung, CC VN in South Africa Mr. Pham Thanh Hai, CC VN in Singapore and Turkey.
Expert insights on promoting exports to the Asia-Africa market
Presenting at the seminar, Dr. Trinh Thi Thanh Thuy highlighted some points that businesses need to consider, including the concept of dual transformation, which involves digital transformation and green transformation. Dr. Thuy shared, ‘Vietnamese businesses often say this market is easy, and that market is difficult… They tend to sell to easy markets to generate revenue. However, it’s not about whether a market is easy or difficult; it’s about whether the market has low or high standards. If businesses continue to sell to markets with low standards without investing in and upgrading themselves, in the near future, importing countries will turn to businesses that can meet high standards for trade negotiations. Losing customers and orders will then become a likely occurrence”.
Dr. Trinh Thi Thanh Thuy, Former Deputy Director of the Institute for Strategic Research and Policy, Ministry of Industry and Trade.
In the strategic development direction, businesses need processes to achieve green certified businesses.
Vietnam’s Trade Counselor in Malaysia, Mr. Le Phu Cuong, shared that when working with international partners to avoid the risk of fraud, when businesses seek customers in foreign markets, they should contact the Vietnamese Trade Counselor in the respective country to cross-check and verify the authenticity of that business, minimizing risks for the enterprise.
Mr. Le Phu Cuong – Trade Counselor of Vietnam in Malaysia
Mr. Pham The Cuong, Trade Counselor of Vietnam in Indonesia, stated that Indonesia is considered the most developed economy in the Southeast Asian region, with a population of 272 million. The majority, 89%, follows Islam, concentrated mainly in Java (45%) and Sumatra (15%). To conduct business in Muslim-majority countries like Indonesia, Malaysia, UAE, etc., enterprises are required to obtain a Halal certificate. Additionally, certain products must clearly state that they do not contain pork.
Mr. Pham The Cuong, Trade Counselor of Vietnam in Indonesia
Since October 17, 2019, the highest authority responsible for Halal product certification appointed by the government is the Halal Product Assurance Agency (Badan Penyelenggara Jaminan Produk Halal – abbreviated as BPJPH), which now oversees Halal certification instead of the Indonesian Ulema Council (Majelis Ulama Indonesia – abbreviated as MUI) as before.
The Halal Product Assurance Agency (BPJPH) is an agency formed under the auspices of the Ministry of Religion. Law number 33 of 2014 on Halal Product Assurance mandates that products circulated in Indonesia must be guaranteed as halal. Therefore, the Halal Product Assurance Agency is tasked with ensuring that halal products imported, circulated, and traded in Indonesia meet halal standards.
Business Statements at the Workshop
Most businesses are interested in market conditions, market figures, and information from Trade Counselors because accessing updated information on websites can be challenging.
Import duty barriers are also a concern raised by businesses. Changes in customs duties in the host country often lead importers to cancel orders even if the goods have already arrived due to excessively high tax rates. To address this issue, Mr. Nguyen Phuc Nam, Deputy Head of the Asia-Pacific Market Department, shares that “the quickest and easiest way is for businesses to proactively contact trade counselors and request customs duties on specific product categories in the host country for verification and cross-referencing.”
What Did Mind Connector Observe through the Workshop?
Searching for information, market data, or consumer preferences is a major concern for most businesses, especially small and medium-sized enterprises (SMEs). If they try to find markets and data on their own, the costs can be prohibitively high, not to mention the challenges of analyzing and synthesizing data that not every business can handle.
Moreover, most market data is available for major industries such as iron, steel, coal, fiber, and agricultural products. So, where can businesses with niche products like ropes, wooden kitchenware, eyelashes, or regional agricultural products find information?
Mr. Nguyen Phan Ngoc Hieu, an expert in Enterprise Risk Management, shared, “In its journey of intellectual connection, Mind Connector has actively engaged, introduced, and guided small and medium-sized enterprises step by step toward perfecting the dual transformation. We don’t just standardize processes internally but also embody the mindset of business owners when working with foreign partners. We are ready to contribute our small effort to significant results.”
