The structure of Vietnam's exports to Switzerland is constantly expanding. The number of groups of goods exported to Switzerland by Vietnam's HS code has increased from 80 groups in 2015 to 92 groups in 2021.

Trade relations between Vietnam and Switzerland in general have grown well. According to data from Swiss Customs, the total import-export turnover between the two countries increased from $1.53 billion in 2015 to $2,407 billion in 2021. Vietnam has always maintained a trade surplus with the Swiss market.

Speaking at the "Export session to the Swiss market" on the afternoon of April 20, Mr. Le Hoang Tai, Deputy Director of the Trade Promotion Department (Ministry of Industry and Trade), said in 2021, Vietnam's exports to Switzerland reached US$1.878 billion.

The main export items of Vietnam to Switzerland are electrical machinery and equipment and components (mainly mobile phones) reaching US$485.9 million; footwear with US$427.4 million; textile and garments reached US$413.2 million; machinery and mechanical equipment reached US$78.7 million.

Vietnam's agricultural and food exports to Switzerland focus on seafood (US$56.1 million), coffee (US$29.8 million), processed foods (US$22.6 million), cashew (US$15.8 million).

"These are considered items with great potential for growth in export turnover to Switzerland," Mr. Tai said.

Leaders of the Trade Promotion Agency added that there are more than 100 Swiss companies operating in Vietnam, including many big names such as Nestle, ABB, Novatis, Roche, Holcim.

Many Swiss enterprises are very interested in expanding business cooperation with Vietnam in the near future.

According to Mr. Nguyen Duc Thuong, Commercial Counselor, Vietnam Trade Office in Switzerland, over the years, economic and trade relations between Vietnam and Switzerland have developed positively. The legal corridor in economic and trade relations between Vietnam and Switzerland has been relatively complete.

The two countries have signed an Investment Protection Agreement, an Agreement on Avoiding Double Taxation, an Agreement on Protection of Intellectual Property Rights, etc. These are important legal bases that allow businesses of the two countries to promote cooperation.

“In addition, Switzerland's import-export management mechanism, as well as technical standards and product quality requirements, are very similar to those of the EU. Switzerland offers Vietnam the universal preferential tariff regime (GSP) when exporting goods to Switzerland," said Mr Thuong.

Besides the favorable factors promoting bilateral trade, he added, the difficulty is that Switzerland is open to industrial products, but it is protective for the agricultural industry.

This market has strict quality control of food safety and hygiene, and a quick alert system. In addition, the market capacity is not large enough for many strong agricultural products of Vietnam.

Besides, Vietnamese goods exported to Switzerland face competition from other countries, especially countries that have free trade agreements (FTAs) with Switzerland and countries in Asia-Pacific.

Sharing experience in exporting goods, especially agricultural products to the Swiss market, Ms. Nguyen Thi Thuc, President of the Vietnam - Switzerland Business Association, said that bringing fresh agricultural products to Switzerland is very difficult. Because the price is too high, you can't sell them. Goods brought into Asian supermarkets are also quite small in quantity.

If the goods are transported by sea, the distance is too long, the goods are easily damaged. At present, the only feasible way is to intensify the deep processing of agricultural products to produce products with a longer shelf life.

“Another key point is that if you want to export to Switzerland, you must pay special attention to transparency and prestige. When exporting to Switzerland from the very beginning, businesses have to consider things such as packaging design and obtaining certificates to fully meet the requirements of this market," said Ms. Nguyen Thi Thuc.

Source: Customs News