Trade promotion methods are still simple with low effectiveness, while trade promotion activities in localities have not yet created a close link and a common operation model, said Minister of Trade Truong Dinh Tuyen.

Many experts said that in the current context when many free trade agreements have been signed, if businesses do not increase their competitiveness and boost trade promotion activities, they will fail to integrate into the global economy. Accordingly, the signing of free trade agreements may be counterproductive as foreign enterprises already have increased business opportunities in Vietnam. Hence, local businesses should consider trade promotion an important factor in raising the competitive capacity of the nation.

There still remain shortcomings

Minister of Trade Truong Dinh Tuyen said that Vietnam has been implementing the national trade promotion programme for five years, but the effectiveness is low due to the failure of businesses and commercial agencies to study and analyse information. Trade fairs and exhibitions were held without thorough plans and careful preparations, so they could not attract a large number of products and visitors.

According to Director of the Investment and Trade Promotion Centre in HCM City Truong Trong Nghia, Vietnam is also facing difficulties in increasing added value for exports. In the international integration process, local businesses should take part in global chains with stronger links to sharpen their competitive edge.

Head of the Trade Promotion Department under the Ministry of Trade, Do Thang Hai, said due attention should be paid to human resource development for trade promotion activities. Many trade promotion centres experience a lack of professional trade promotion officers with foreign language knowledge.

Explaining the reasons leading to such shortcomings in human resource development, deputy director of the Hai Phong Trade Promotion Centre Pham Van Luc said preferential treatment for trade promotion officers has not yet attracted talented people. All trade promotion centres want to employ officials who have experience in international negotiations, analyzing capacity and market forecast, but they cannot find suitable personnel because of the low salaries on offer.

Mr Hai also elaborated on the poor infrastructure for trade promotion work in Vietnam and compared it with other countries in the region and the world. Most localities do not have their own special-purpose venue to organize trade fairs and exhibitions, so they have to use existing public places for these events, such as youth cultural houses, parks and stadiums. Therefore, weather conditions and confined areas affect the quality of these events.

Clear objectives and beneficiaries

Current trade promotion programmes pay little attention to small-and medium-sized enterprises which account for 90 percent of Vietnam’s total enterprises. Therefore, Minister of Trade Truong Dinh Tuyen said that national trade promotion programmes must be designed for these small and medium-sized enterprises.

Minister Tuyen added that trade promotion centres should be allowed to collect fees from exhibiting enterprises and combine responsibility for both the enterprises and trade promotion centres.

Do Thang Hai said the government is planning to set up a fund for trade promotion, investment and tourism to replace the current export support fund. Expenses for trade promotion programmes will be provided from the fund. The establishment of the fund is a decision which is in line with WTO regulations.

Many people share the idea that there should be a common model for trade promotion, investment and tourism to avoid wastefulness and the overlapping of services.

Truong Trong Nghia suggested the Department of Tourism and the Department of Planning and Investment closely cooperate with trade promotion centres to build effective trade promotion programmes.

Alain Chevalier, consultant of project VIE 94, said Vietnam should promote export activities at the moment, as trade imbalance in the first half of the year has been over US$4 billion. Overseas trade promotion is not just the preparation for transport and hotel services, it is imperative for enterprises to promote proper types of products for their chosen markets.

Mr Chevalier also suggested some solutions to the current developments in Vietnam. He said localities which have too many small and medium-sized enterprises can unite them to fulfil large contracts under export cooperative programmes.

The key task of trade promotion centres is to supervise enterprises’ requirements. Trade promotion centres need to frequently update market information for enterprises, as well as working with other organizations to assist enterprises.

According to Mr Chevalier, there is no standard trade promotion centre at the moment. However, a trade promotion centre should have a functional office for general management, an office for trade information and market research, an office for product and market research and development and an office for organizing fairs and exhibitions. Mr Chevalier said Vietnam is following this model to build new trade promotion centres.

Source: VOV