Some solutions to improve the competitiveness of Vietnamese silk products

Appendix 8: THINGS TO KEEP IN MIND WHEN DOING BUSINESS IN THE US MARKET

To enter the US market, businesses must not only master the requirements of the market, the tastes of American consumers and ensure that their products are competitive in terms of quality and price, but also be proficient in the legal system, grasp the import-export management system as well as the US quota system.

Characteristics of the US commercial legal system

The United States is a country with an extremely complicated and intricate commercial legal system. The Uniform Commercial Code is considered the backbone of the commercial legal system. In addition, businesses need to pay attention to the Consumer Responsibility Law regarding the quality of goods produced and sold in the US market.

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In addition, the US Government also promulgates many laws that strictly and specifically regulate product safety and product labels circulating in the US market. For example, federal laws on food, drugs, cosmetics, flammable fiber laws, consumer safety laws, anti-toxic packaging laws, and federal motor vehicle and traffic safety laws,

At the same time, the US is also a country that strictly institutionalizes consumer rights. According to the Law on Warranty and Consumer Protection, there are clearly two types of warranty: express warranty and implied warranty. Express warranty is understood when the product has a model, specifications and components, meaning that the seller must commit to guarantee all of those things. Implied warranty is the guarantee that the sold product is suitable for the buyer's purpose, although sometimes the intended use is not the same as the original purpose of the manufacturer. Reality has shown that, due to carelessness, many manufacturers have paid a high price, spending millions of dollars on consumer lawsuits. Therefore, successful exporters to the US market affirm: "Buy insurance for

"It is wisest to trade in goods from well-known insurance companies."

In order to create a fair business environment, the US government has issued strict and specific regulations. According to the Anti-Dumping Law and the Subsidized Goods Law, anti-dumping duties and duties on subsidized imports will be used as a barrier to protect production. Thus, in addition to normal import duties, imported goods are also subject to anti-dumping duties. This tax is applied to imported goods determined to have a value lower than normal value when the International Trade Commission determines that such goods may cause injury or threaten domestic production.

Before importing into the US market

US import quotas are set by law or by government agency decisions and are divided into two types: absolute quotas and tariff-rate quotas.

1. Absolute quota is the specific quantity allowed to be imported for each type of goods within a certain period of time.

2. Tariff quota is the tax exemption or reduction for each item within a certain period of time.

Currently, the United States participates in most international trade institutions. If this issue is not properly addressed, Vietnamese textile and garment enterprises will not find the right solution to gain an advantage in the US market. For example, under the US-Canada Free Trade Agreement, they are completely free from tariff barriers. However, this only applies to goods originating from the two countries, and does not accept any form of transit, transshipment, or processing of goods and materials originating from a third country.

Before deciding to export goods to the US, an important step that cannot be skipped is to research the market and seriously evaluate the reality.

The ability of the enterprise, especially the ability to manage and operate exports, the competitiveness of products, marketing ability and economic potential. Choosing the right form of export will help the enterprise quickly establish a foothold in the US market. Accordingly, Vietnamese textile and garment enterprises can conduct indirect exports through agents, export management companies or export trading companies. However, the optimal solution is to outline a strategy for direct export, which will help the company control the entire export process, establish direct relationships with the consumption network and consumers. The summary of the experience of foreign companies with many years of experience in doing business in the US market shows that: "The way to conquer the US market is to know how to use sales representatives, agents, distributors, retailers." A very useful advice is: "Exporters need to be careful when deciding to sell directly to consumers." Because in the US market, this direct selling always comes with great responsibility to consumers.

Previously, the biggest difficulty for Vietnam in exporting to the US market was having to pay very high tariffs because Vietnam did not enjoy the MFN status of the US and there was no bilateral trade agreement between the two countries. However, when this Agreement was signed, Vietnam faced new challenges. For example, the US market has very strict requirements on standards, product labels and product origin. Furthermore, US trade practices often require FOB purchases (direct export), while Vietnamese garments are mainly processed for export. This is a significant obstacle in increasing exports to the US market. Because when exporting FOB, Vietnamese textile and garment enterprises must consider financial capacity, accept risks and understand the consumer psychology of Americans. And above all, it is time to consider high-quality domestic raw materials to meet the binding requirements on localization rates when exporting to this market.

American garments require strict rules and must be produced using advanced technologies such as 5-thread sewing machines, overlock machines, hemming machines, as well as modern thread cutting and ironing systems. To do business with the US, you need to have

large-scale production lines, because American companies often order in large quantities, with short lead times, seasonally.

In addition, as soon as Vietnam enjoys MFN status, it must also face fierce competition from textiles from China, Hong Kong, Bangladesh, countries that have a solid position in the US market, have prestige, have stable customers, and countries in the NAFTA bloc with preferential conditions according to regional trade agreements. Therefore, Vietnam's textile products must promote price advantages, delivery time and quality reputation to compete with these countries.

After the Vietnam - US Trade Agreement was signed by the two governments (in 2000) and approved by the two countries' National Assembly (in 2001), the US has become a large and potential market for Vietnamese textile and garment enterprises. If Vietnamese manufacturers do not try to improve their competitiveness, it would be a pity for them to miss a great opportunity. Therefore, right now, Vietnamese textile and garment enterprises need to improve their competitiveness by increasing investment in human resources, technological equipment and improving management systems.

REFERENCES

A- Books, newspapers, magazines

[1.] Topic: Some solutions to improve the export competitiveness of Vietnamese enterprises in the process of international integration. (Topic writer: Mr. Le Hai Chau, Ministry of Trade - Trade Research Institute)

[2]. Quynh Chi. From traditional silk to the AQsilk brand. Hanoi Moi Newspaper. No. 427. Published on May 31, 2003.

[3]. Le Viet Thai - Competition policy - a necessary tool in a market economy - Economic research No. 10,1996.

[4]. Dictionary of economic terms, 2001, Hanoi Encyclopedia Publishing House, page 349

[5]. Hong Van. Silkworms molt to spin silk. Saigon Economic Times. No. 21/2004. Published on May 20, 2004.

[6]. Thanh Thuy. AQSILK - a brand living in America. Commercial Enterprise. No. 168. November 2002.

[7]. Campaign to improve silk production for export. Propaganda Department of the Ministry of Foreign Trade. Published in 1966.

[8]. Documents of the 9th National Party Congress.

[9]. Theoretical Marketing Textbook - Foreign Trade University. [10]. Vietnam's textile industry - Opportunities and challenges.

B- Website:

[11]. http://www.asc.com.vn Silk anti-wrinkle technology. [12]. http://www.cpv.org.vn

[12.1]. For the sustainable development of the mulberry, silk and sericulture industry. [12.2]. Solutions for the Lam Dong mulberry and silk industry. [13]. http://www.danang.gov.vn

Research on improving the method of dyeing silk fibers and silk from manual to semi-mechanical.

[14]. http://www.dddn.com.vn

Market positioning: Building a distinct and outstanding brand. [15]. http://www.dei.gov.vn

Viseri cooperates with Japan to produce silk. [16]. http://www.doanhnghiep.vietnamnet.vn

[16.1]. Registering a trademark is self-protection. [16.2]. Brands bring a special feeling of excitement. [16.3]. Brands - from legal to practical.

[17]. http://www.golmart.com.vn Brand for silkworm silk thread. [18]. http://www.hatay.gov.vn

[19]. http://www.hvnclc.com.vn

Thai businesses strive to build their brands. [20]. http://www.lamdong.gov.vn

[20.1]. Vietnam Sericulture Corporation on the way to recovery and development.

[20.2]. Bao Loc strives to be the development center of the southern districts. [20.3]. Lam Dong revives traditional craft villages.

[21]. http://www.laodong.com.vn

[21.1]. Encourage but don't let up. [21.2]. Undercurrents in Van Phuc.

[21.3]. Silk village thread

[21.4]. Analysis of China's silk import and export situation in 2001. [22]. http://www.lacai.com

The truth about silk quality in Van Phuc. [23]. http://irv.moi.gov.vn

[23.1]. Lanh My A from Tan Chau silk village creates modern costumes. [23.2]. Vietnamese brands past and present.

[24]. http://www.nhavui.com.vn Heritage - Silk

[25]. http://www.nhaxa.com.vn

[25.1]. Developing rural craft villages in Vietnam [25.2]. Nha Xa's concerns.

[26]. http://www.nhandan.org.vn

[26.1]. Functions of brands.

[26.2]. Methods of selecting brand elements. [26.3]. Brand stories.

[26.4]. Some notes when designing a brand. [26.5]. Requirements when designing a brand. [26.6]. Branded elements. [26.7]. The importance of branding.

[26.8]. Building brand value – a difficult journey. [26.9]. Brand design.

[27]. http://www.quandoinhandan.org.vn [27.1]. Silk industry.

[27.2]. Silk products. [28]. http://www.sgtt.com.vn

[28.1]. To bring Vietnamese goods to the US market.

[28.2]. Silk is favored by foreign customers. [28.3]. Brand, invaluable asset of the Enterprise [28.4]. Thin silk, thick benefits.

[28.5]. Vietnamese silk has a chance to recover. [28.6]. “Exporting” brands.

[29]. http://www.smallbusinessnotes.com Trademarks.

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