With the ASEAN Economic Community newly established, Vietnamese consumer goods will soon face fiercer competition from regional countries, including Thailand. So what can Vietnamese enterprises do to deal with the situation?
Tri Bao Fragrances Company joins the 2016 Made in Thailand Outlet as partner of a Thai business in Vietnam. The company has been extracting and distributing fragrances and essential oils in Vietnam for 4 years using Thai technology. This cooperation has helped Tri Bao Company gain much experience in doing business from its Thai partner.
Finding partners is the goal of most Thai enterprises attending the 2016 Made in Thailand Outlet, which is joined by 120 Thai businesses in the fields of food and beverage, textiles, and cosmetics, among others. Thai enterprises are well-known for their ability in manufacturing industries, especially food processing and agricultural products. Moreover, Thai companies welcome cooperation.
Minister Counsellor Petcharakul also said Vietnam had great potential in agricultural products but still lacked some technology. This has significantly affected the value of Vietnamese products. In order to improve this situation, Vietnamese enterprises should promote cooperation with foreign partners in the coming years.
Thailand is now Vietnam’s largest trade partner among ASEAN countries. The ASEAN Economic Community, established on December 31st of last year, is soon expected to boost the free flow of goods. Currently Vietnam is suffering a trade deficit with Thailand. For the first 11 months of 2015, Vietnamese exports to Thailand reached 3 billion USD while imports reached 10.5 billion USD.
