Exporters work on trade flow solutions

Despite being impacted by logistical disruptions and escalating costs, exporters are still taking advantage to diversify markets, increase orders, and strengthen their supply chains status.

- By Tra My

Political instability in the Middle East has disrupted trade flows and prompted international importers to seek alternative sources of supply from stable markets.

Nguyen Tuan Viet, chairman of trade consultants VietGo, told a seminar on the conflict and its impacts on trade last week that in just the first 10 days of March, the company received more than 300 orders from the Middle East, mainly focusing on agricultural products, food, consumer goods, and construction materials.

"Specifically, the fresh produce category, such as fruit with short shelf lives, saw a sharp increase. This was due to disruptions in supply from the Middle East and neighbouring markets, forcing many European partners to seek alternative sources." Viet said.

According to Viet, countries like Israel and Iran have strengths in high-tech agriculture and supply many clean agricultural products to the European market thanks to their close geographical proximity and low transportation costs. When conflict occurs, production and transportation in this region are affected, forcing many markets to seek alternative sources of supply.

"Vietnam is emerging as a stable supply destination thanks to its abundant supply of goods, stable macroeconomic environment, and trade agreements signed with approximately 60 markets worldwide," he said.

Many other industrial sectors in Vietnam are also recording positive signs. Items such as textiles, plastics, bedding, indoor and outdoor furniture, and footwear are predicted to see increased demand as some traditional supply sources are disrupted.