Some solutions to limit risks in international goods trading activities of Vietnamese traders

plans and solutions to gradually adapt to more competitive international business conditions and environments.

- In the context of international economic integration, export of processed industrial products is stimulated with many preferential policies, while Vietnam's exports are mainly agricultural products, crude oil, unprocessed seafood. Thus, Vietnam will not benefit much if we do not accelerate investment in processing industry to have processed products for export.

- With lower quality and high product prices, Vietnamese products do not have a competitive advantage in the regional and world markets if they only rely on the uniqueness of designs and types. Without basic improvements in technology, improving quality, and lowering product prices, Vietnamese goods will hardly have a place in the world market.

- Differences in science and technology levels, lack of business experience, international competition, lack of an updated information network on market conditions, inferiority in business management qualifications... are also causes. causes risks for Vietnamese businesses during integration that no one can predict how serious it will be.

These are common risks for the Vietnamese economy when integrating into the world economy. Particularly for international goods trading activities, the risks that businesses may encounter will increase in both terms and conditions. The nature and severity are due to some of the following basic causes:

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- Partners in international goods purchasing and selling activities of Vietnamese enterprises are increasingly diverse, operating in many different countries, so it is important to thoroughly learn about partners as well as the business environment in other countries. encountered many difficulties.

- The increasing level of science and technology in the world is also the cause of increasing commercial fraud, these frauds are increasingly increasing.

are more sophisticated and complex, making it difficult for importers and exporters to recognize these behaviors despite thoughtful research before conducting their goods trading activities.‌

- Along with the development of international goods trading activities, import and export operations have also become more diverse and rich. This requires businesses to regularly have plans to improve the skills of their staff, responding to changes in business conditions.

Through the above analysis, we can see that once Vietnam integrates more and more deeply into the world economy, the nature and level of risks faced by businesses participating in international goods trading activities will increase. may encounter is increasing day by day. Therefore, businesses need to be aware of these issues and pay more attention to risk management activities in their business processes.

3.2. Solutions to limit risks in international goods trading activities

3.2.1. Macro solutions

3.2.1.1. Stabilize and make macroeconomic policies transparent, improve the legal system and financial and monetary policies

All activities of businesses in general and of import-export businesses in particular are closely linked and closely dependent on the macroeconomic policies and operating mechanisms of the State. However, Vietnam's current macroeconomic policies still have many shortcomings, causing risks for import-export businesses. Our country's business and trade policies are still unclear, many times the set goals are far from reality, and policy implementation is not synchronous, inconsistent and slow. Therefore, stabilizing macroeconomic policies, especially foreign trade policies, exchange rate policies... is extremely necessary. At the same time, the State, ministries and branches also need to have positive solutions and create conditions

Favorable for businesses through flexible import and export mechanisms, improving cumbersome procedures that hinder international goods trading activities. Macroeconomic policy and financial-monetary policy need to be improved in the following directions:

- Set out strategies and goals for import and export activities in the immediate future, have reasonable 5-year and 10-year plans along with directions and measures to achieve those goals. . The goals set must not be far from reality, must take into account the international economic context, factors affecting Vietnam's trade relations, and be consistent with the economy's capabilities and capacity. development rate as well as trade growth rate of Vietnam. Based on the set strategic goals, develop plans and measures to promote the implementation of import-export plans such as increasing investment to create sources of export goods, developing markets, promoting trade. trade... and at the same time strengthen inspection and control of strategy implementation activities at the macro level in order to promptly adjust the strategic content to suit the development of the national economy in the context of the world economy. and the area has many changes.

- Continuously improve the legal system and management policies for international goods trading activities. To do so, we must build a legal system and economic management policies on a scientific basis, in accordance with practical production and business requirements and international practices to promote growth and limit negative impacts. Defects hinder international trading activities of businesses. State legal documents also need to be carefully studied before being applied, to avoid haste leading to "fixing mistakes", causing risks for some import-export businesses. When developing a business plan, do not anticipate difficulties or additional costs.

- Vietnam's economic policies are still changing, procedures are not convenient for businesses. Therefore, it is necessary to stabilize and make transparent these policies, especially foreign trade policies such as export source development policies, import and export tax policies, import and export management and administration policies, and import and export policies. policies to support and encourage the development of import and export... Innovating tax work through tax collection methods will also help reduce risks for businesses.

- Gradually build and improve financial and monetary policies, establish a reasonable exchange rate mechanism, both meeting the requirements of encouraging and promoting import and export while minimizing exchange risks. for import and export businesses.

Exchange rate policy plays a very important role in import and export activities. In fact, from 1989 until now our country has applied different exchange rate policies. Since March 1989, a floating exchange rate policy has been applied, but this policy has caused many negative consequences for the economy, so the state has intervened in the foreign exchange market, with a fixed exchange rate policy. is applicable. But due to the requirements of the international economic integration process, the state has applied a flexible exchange rate policy under state management.

From 2001 to present, the impact of exchange rate policy on exports has changed many times due to the US's weak USD policy. In the process of integrating with the world economy, Vietnam is making many policy changes. As for foreign exchange management policy, currently, Vietnam has issued an Ordinance on foreign exchange on the principle of liberalizing the exchange of current transactions, gradually loosening foreign exchange management for transactions. capital, creating conditions for the foreign exchange market to develop more abundantly and diversely. That means exchange rate policy will become increasingly flexible. However, the USD still accounts for a large proportion of trade and capital transactions in the Vietnamese economy, so our country's exchange rate policy

It is also necessary to move away from being tied to the USD to attach to some other foreign currencies. It is necessary to choose many foreign currencies, thereby creating conditions for commercial banks to provide risk insurance services on interest rates and exchange rates, allowing strong foreign currencies to be freely converted. Thus, the role of the USD will gradually be limited and the market can use many currencies on the basis that those currencies are insured by exchange services provided by credit institutions and banks. supply trade.

It can be seen that macroeconomic stabilization is extremely necessary to create a favorable environment for Vietnamese import-export businesses. But changing an outdated foundation of thinking is a difficult job. It requires breakthroughs in thinking and scientific perspective, taking into account the actual conditions of the country. This requires the continuous efforts of relevant industry officials to have correct and reasonable policies for Vietnam's import-export business environment.

3.2.1.2. Actively and proactively participate in international economic integration

Nearly twenty years ago, Vietnam has successively joined international and regional organizations, restoring normal relations with countries and organizations such as the World Bank (WB), International Monetary Fund. (IMF), Asian Development Bank (ADB), joined ASEAN, APEC, implemented CEPT program, co-founded ASEM, World Trade Organization (WTO)...

Integration is an inevitable requirement of world economic development. The proof of success when participating in international integration is undeniable. Each country, when participating in the integration process, encounters difficulties as well as advantages, so countries must improve their economic - political and legal environment to suit the general trend. . Participating in these organizations, Vietnamese businesses, although facing many immediate difficulties due to having to compete with many strong competitors, in the long term

In the long run, we will have fairer competition conditions, and trade disputes will be regulated and resolved by the laws of those organizations.

3.2.1.3. Promote the role of associations

Currently, associations have a very limited role, are not able to advise State agencies on policies nor coordinate with these agencies in resolving issues related to development. industry development. Vietnam Business Associations currently do not have much experience and have not been able to promote their roles and functions effectively.

In the domestic market, many smuggled goods are widespread, knocking out many goods from domestic businesses as well as causing many difficulties and losses for genuine import businesses. Therefore, the role of associations must be promoted. The associations themselves will have to be a bridge, representing industry interests, and must harmoniously resolve the relationship between businesses and businesses, businesses and the State, businesses and world economic relations...

3.2.1.4. Enhance business support in terms of information

Accurate, complete and timely information makes an important contribution to the success of the business. Therefore, to support businesses in the most effective way, the State needs to help businesses access such information sources.

In recent years, our State has paid more attention to the issue of supporting businesses in finding information, this is most clearly shown through the establishment of Vietnam e-commerce portal (ECVN). . This has greatly helped Vietnamese businesses in their operations, especially newly established businesses that need to learn about different markets as well as promote their own businesses. Helps businesses find business partners more quickly and conveniently.

In addition, the State needs to pay attention to increasing support for businesses to quickly access the legal system and policies newly promulgated by the state as well as basic changes in foreign trade policies of some countries. around the world to facilitate businesses in their business processes. The state can do this in the form of regularly opening training classes to improve professional skills for employees of businesses; Regularly update information on State and Government websites, creating a reliable source of information for businesses.

3.2.1.5. Enhance trade promotion activities

Recently, the Vietnamese Government has paid more attention to trade promotion activities for businesses by bringing delegations of businesses along with the Government delegation when visiting foreign countries. allowing businesses to participate more in international exhibitions... to promote Vietnamese goods to foreign markets. This is an effective job that helps our country's goods gain a foothold in foreign markets.

In the coming time, the Government needs to pay more attention to trade promotion activities for businesses, in which Vietnamese trade agencies abroad are the most important bridge to provide information to businesses. businesses, and at the same time promote brands for Vietnamese goods. In particular, in new markets, businesses will face high risks because foreign partners are not familiar with our products and business methods, so the government's trade promotion activities is a decisive factor to help foreign businesses establish trade relationships with Vietnamese businesses.

In addition, cities and business associations of each region and each industry need to establish trade representative offices in countries and key market areas with new forms and content of operations.

Trade representative offices have the function of directly researching the local market, implementing advertising campaigns, and promoting the brands of Vietnamese goods with the aim of improving the group's competitiveness and export ability. , the industry we are responsible for, means not only creating conditions for corporations and large companies but also small companies to have access to regional and international markets, limiting the steps intermediaries that many textile and agricultural enterprises have used to penetrate the export market in recent times.

3.2.2. Micro solutions

3.2.2.1. Training and fostering staff working in foreign trade

People are always the deciding factor in success or failure in all activities, especially production and business activities of enterprises. An export enterprise with a team of foreign trade staff who are professionally skilled, dynamic, creative, and knowledgeable about domestic and foreign markets will operate more effectively and be better able to prevent risks than others. other businesses. However, the general situation of the current team of foreign trade officials is that the majority lack experience in international trade. The number of officers who are professionally skilled, good at foreign languages, and familiar with international law is not many. Therefore, to limit risks, businesses need to train their staff through improving transaction, negotiation, and contract signing capacity from awareness to theory; At the same time, organize operations and improve professional qualifications, foreign language proficiency, information technology, knowledge of law, international trade practices, knowledge of culture, society, and customs. customs of partner countries as well as the ethical qualities of officials in the enterprise. At the same time, businesses also need to have regulations

Some solutions to limit risks in international goods trading activities of Vietnamese traders - 10

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