Covid - 19 webinar series : export market outlook and business responses

May 29th, 2020

SIPPO Vietnam has joined hands with wood and textile BSOs in Vietnam in a series of webinars on the topic of export market outlook during the pandemic time, how to overcome this crisis and the potential market opportunities for Vietnam.

SIPPO Vietnam has joined hands with wood and textile BSOs in Vietnam in a series of webinars on the topic of export market outlook during the pandemic time, how to overcome this crisis and the potential market opportunities for Vietnam.

On the second week of April, the Handicraft and Wood processing industry of Hochiminh city (HAWA) coordinated the representatives from AMCHAM in Vietnam, the US Consulate in Hochiminh city, EUROCHAM in Vietnam, the Korean Consulate in Hochiminh city and Mr. Sebastian Schlüter – on behalf of a German buying group to an online interview to share about the situation in USA, Europe and Korea. A teleconference with the attendance of VIFORES, HAWA, BIFA, FPA, MARD and MOIT were also conducted after that to discuss about the facts and solutions for wood sector in Vietnam. More than 200 participants joined the online conference and were updated on how the pandemic has been putting pressure on US and EU companies, how they could deal with the situation and what would the business opportunities for Vietnamese wood processing companies could be. Possible solutions for this situation are market segmentation and business scenario diversification, factory management improvement, alternative distribution channels as well as substitution for the segregation supply chain.

Recently, in another webinar organized by the Vietnam Textile and Apparel Association (VITAS) with the presence of around 100 online attendees from 70 company members, SIPPO experts and SIPPO Vietnam have consolidated and shared the update about European market during the Covid time and also clarified the potential of the European Vietnam FTA (EVFTA) for the Vietnamese Textile and Apparel Industry. SIPPO experts said it was impossible to forecast the market and the behavior of the customers in the coming months since they had not yet come back to normal. Nonetheless, a recent survey undertake in in EU and US revealed that 65% of the end consumers expected to reduce their spending on apparel and experience from the previous crisis showed that it might take 2 years to restore consumers’ confidence. Vietnam, on the other hand, might benefit from a tax reduction after joining EVFTA as it would have more opportunities to enter the EU market. According to the EVFTA and the lesson learnt from the pandemic outbreak, buyers are most concerned about sustainability and transparency. Thus the SIPPO experts advised the Vietnamese companies to pay more attention to enterprise sustainability and transparency and should invest in their visibility and communication thereof.