Nguyen Ngoc Luan, director of Global Trading Connection Co., Ltd., revealed that so far this year, export orders from the company’s major markets such as Australia and the US saw over a 30 per cent decline.

Its exports to the EU market were excellent last year, yet business has been bleak in 2023. Meanwhile, its exports to Russia also sank as the rubble lost much of its value against the US dollar.

Many firms now operate at below capacity while they try to retain their workforce

In addition, payments through banks to Russian partners have been obstructed due to the sanction measures the US and EU have applied to Russia.

For the rice sector, local supply sources have been limited due to low output in the 2023 summer-autumn season, which just equalled 80 per cent of that seen in the winter-spring season last year.

Phan Van Co, Marketing director at Vrice Group, exhibited concerns over the fact that such reduced output would have a considerable impact on order placements.

Amidst the market woes, firms across the board are scaling up their efforts, hunting for new markets.

Aside from traditional ones such as China, the US, and the EU, companies are dynamically looking for entry points into markets such as the Middle East and Africa.

Tran Van Son, director of Gia Bao Group, shared that his company has constantly promoted itself in Japan, Dubai, India, and especially the Middle East, including in the United Arab Emirates.

“The halal food market is deemed to reach $1.5 trillion globally, yet Vietnam’s export capacity remains modest, which provides opportunities for Gia Bao as well as many other local firms,” said Son.

Lu Xuan Nguyen, CEO of Xuan Nguyen Group, said that the company is focusing on bolstering product coverage and launching diverse promotions to boost sales.

Fresh products being launched in Q3 include matcha powder, fine products made from saffron and royal jelly, and those made from bird’s nest, honey and ginseng, among others.

Amidst the difficulties in export markets, many firms opt to drive sales in domestically, mainly to create employment for their labourers while waiting for a rebound.

However, if this situation drags on, many businesses will struggle to survive.

Therefore, Co from Vrice Group proposes that the state should soon introduce measures to simplify administrative procedures and lower logistics costs.

Currently, the logistics infrastructure in many areas is below par, leading to a deterioration in product quality. In some cases, firms have had to compensate their partners as a result.

Luan from Global Trading Connection feels that many support policies are slow to generate practical effects and current lending procedures remain complex. Therefore, the relevant management agencies need to come up with consistent measures to help during this challenging time.