Hỗ trợ nhằm nâng cao năng lực quản trị cho các doanh nghiệp nhỏ và vừa Việt Nam nhằm vượt qua hàng rào kỹ thuật thương mại trong xuất khẩu nông sản

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SUPPORT PROGRAMS TO IMPROVE MANAGEMENT

CAPACITY FOR VIETNAMESE SMALLAND MEDIUM SIZED

ENTERPRISES TO OVECOME TECHNICAL TRADE BARRIERS

IN AGRICULTURAL EXPORT

HỖ TRỢ NHẰM NÂNG CAO NĂNG LỰC QUẢN TRỊ

CHO CÁC DOANH NGHIỆP NHỎ VÀ VỪA VIỆT NAM NHẰM

VƯỢT QUA HÀNG RÀO KỸ THUẬT THƯƠNG MẠI

TRONG XUẤT KHẨU NÔNG SẢN

Le Tien Dat, PhD - Le Thi Thu, MA

Thuongmai University

Tiendatle1509@gmail.com

Abstract

Since “Doi moi” (Vietnam’s economic reforms), Vietnamese agricultural products have in-

creasingly exported to numerous international markets. However, agricultural export activities

to fastidious markets with strict trade protection barriers such as US, EU and Japan is still a big

challenge for Vietnamese enterprises, especially for small and medium enterprises (SMEs). Play-

ing an important role in the country’s economy, Vietnamese agricultural export SMEs firmly need

supports from local and government agencies. Apart from training, further support programs

such as consulting activities, seminars and websites should be provided to Vietnamese agricul-

tural export SMEs to improve their management capacity to overcome technical barriers. This

paper focuses on support solutions for Vietnamese SMEs to improve their management capacity

to overcome barriers in agricultural export. This study is conducted by using qualitative ap-

proach. Data is collected through in-depth interviews with 124 Vietnamese SMEs doing business

in various fields, exporting various agricultural products and coming from various

provinces/cities in Vietnam. With the aim of improving management capacity for Vietnamese agri-

cultural SMEs in order to better export, overcoming technical trade barriers, the paper proposes

two groups of supports related to (1) Promoting consulting activities and seminars; and (2) Pro-

moting electronic information portals and websites. The paper is expected to be beneficial to

SMEs and government agencies in developing support programs for Vietnamese agricultural

SMEs.

Keywords: Vietnam, SMEs, Agricultural export, Support programs, Trade barriers

Tóm tắt

Kể từ khi nền kinh tế Việt Nam mở cửa, nông sản (NS) Việt Nam ngày càng được khẳng

định vị thế trên thị trường quốc tế. Tuy nhiên, hoạt động xuất khẩu (XK) nông sản (NS) sang các

thị trường khó tính, với hàng rào bảo hộ thương mại nghiêm ngặt như Mỹ, EU và Nhật Bản vẫn

là thách thức lớn đối với các doanh nghiệp, đặc biệt là các doanh nghiệp nhỏ và vừa (DNNVV).

Với vai trò quan trọng trong phát triển kinh tế, các DNNVV XK NS Việt nam rất cần sự hỗ trợ từ

phía các cơ quan hữu quan từ cấp địa phương tới cấp trung ương. Bên cạnh các chương trình

đào tạo, các hoạt động tư vấn, hội thảo và websites cần được triển khai nhằm hỗ trợ DNNVV

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nâng cao năng lực quản trị vượt qua rào cản kỹ thuật. Bài viết này tập trung vào các giải pháp

hỗ trợ cho các DNNVV Việt Nam nhằm nâng cao năng lực quản trị vượt qua rào cản kỹ thuật

tiêu chuẩn quôc tế. Nghiên cứu này được thực hiện bằng phương pháp nghiên cứu định tính

thông qua phỏng vấn với 124 DNNVV xuất khẩu các sản phẩm NS khác nhau, tới các thị trường

khác nhau, và từ các tỉnh, thành Việt Nam. Nhằm nâng cao nắng lực XK cho các DNNVV NS

Việt Nam, vượt qua các hàng rào tiêu chuẩn kỹ thuật thương mại, bài viết đề xuất hai nhóm giải

pháp liên quan tới: (1) Các chương trình tư vấn và hội thảo; (2) Phát triển cổng thông tin điện

tử và websites. Bài viết mong đợi sẽ hữu ích cho bản thân các DNNVV cũng như các cơ quan

hữu quan trong việc phát triển các chương trình hỗ trợ cho các DNNVV XK NS Việt Nam.

Từ khóa: Việt Nam, DNNVV, Xuất khẩu nông sản, Chương trình hỗ trợ, Hàng rào

thương mại

1. Introduction

Agricultural export plays an important role in the economic development of developing

countries, including Vietnam. In recent years, Vietnam’s agricultural export value has significantly

contributed to Vietnam’s total export value and GDP, increasingly asserted its position in the in-

ternational market. As a country based on agriculture development, Vietnam has integrated into

international markets and has gained significant achievements with the participation of many

business sectors, in which SMEs account for a significant proportion. In 2019, agricultural export

turnover reached about 41.3 billion USD, an increase of 3.2% compared to 2018. However, the

agricultural product export to promising but difficult markets of Vietnam such as USA, EU, Japan,

China is still a great challenge.

Recently, Vietnamese agricultural export has gained advantages in expanding foreign mar-

kets due to incentive policies from free trade agreements. However, trading countries have in-

creasingly imposed protection barriers on these agricultural products. A great number of non-tariff

barriers have been created, which requires exporters to take steps to meet these standards as this

directly relates to opportunities to access, penetrate and develop potential and promising export

markets.

Agricultural export SMEs often have small-scale production, limited finance resources and

management capacity. Therefore, Vietnamese government, ministries and relevant associations

have provided numerous supportive policies to these enterprises. However, such programs have

been evaluated not completely synchronized, suitable and effective in the consideration of Viet-

namese SMEs’ characteristics. Especially, financial support programs have not been popularly

provided and convenient for SMEs to access. On the other hand, achieving success in foreign

markets requires a lot of strives from SME managers, and thus, improving management capacity

is believed as one of the most important solutions for Vietnamese agricultural export SMEs. Apart

from training activities, there should be additional supporting activities to help SMEs to update

information, understand markets’ features, seize opportunities as well as manage business activ-

ities to overcome trade barriers.

With the limitations related to capital, technology, networks, experience, management ca-

pacity, etc., support programs are extremely essential to SMEs in exports (Sousa 2009). The sup-

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port should include a range of activities, ranging from financial services to market development,

especially capacity building for SME managers (Shamsuddoha 2009; Hang 2016). Recognizing

the importance of support to export SMEs, many programs have been developed and provided

by governments such as those related to export products development; quality and safety control

programs; customs assistance programs; programs to develop domestic supply chains; programs

to build pioneering foreign distribution networks; programs to provide information and advice

(Sang Hyeon Lee 2018). Vietnamese Government has also developed many incentive policies

and programs to support SMEs. However, due to the requirements of markets as well as the needs

of enterprises, the research investigating supports need of SMEs to develop appropriate ones is

always important. This is also the rationale for this paper. Furthermore, the paper is also expected

to make theoretical contribution by examining the support needs from SMEs, in the context of

developing and integration economic such as Vietnam.

2. Litertureview

2.1. Agricultural Export and the Impact of Trade Protection Policies on Agricultural exports

of SMEs

The agricultural sector has asserted its strategic role in the development of countries around

the world. Agricultural export accounts for a great proportion of total domestic products by selling

abroad advantageous and high quality products. Export result contributes to trade balance, assist

nations in maintaining and expanding domestic production, taking advantage of scientific and

technological advances and integrating into international economic development.

Recent economic development achievement of many developing countries has revealed

that the implementation of export-oriented policies has helped them much in poverty reduction,

becoming new industrial countries, step-by-step catching up with developed countries. Therefore,

for many developing countries, exports have become the key development strategy of the econ-

omy, strongly facilitating socio-economic growth.

Due to advantageous differences which may be related to factors such as capital, labor,

technology, natural conditions, government policies, the contribution of agricultural export in

total export in various countries is not the same. However, agricultural export is still generally

considered as an important source of capital for import and production development, serving the

industrialization and modernization of the country.

Trade liberalization or international trade may reduce trade barriers, contributing to market

expansion (Kubey & Csikszentmihalyi 2013). Also, trade liberalization plays an important role

in upgrading technology, attracting investment, and thereby improving the country’s economy

(Afonso 2001). Although every country recognizes the benefits of free trade, protection methods

are still used by many governments as an effective tool in certain stages. Amongst trading prod-

ucts, agricultural products are the one protected the most by countries due to its sensitiveness,

highly depending on natural conditions, associating with national food security, food safety and

other social issues such as employment. Major export markets such as US, EU, and Japan, with

large consumption volumes, have been developing numerous protection policies for agricultural

products under the form of technical standard barriers.

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2.2. Support Programs for Export Enterprises to overcome Barriers

Support programs strongly affect the performance of export SMEs (Sousa 2009). In order

to help export activities to be more effective, to better penetrate into foreign markets, supports

of government agencies at all levels are extremely needed. In particular, accessing fastidious

markets is normally not easy for SMEs when they often lack capital, experience and capacity.

Therefore, the assistance should focus on facilitating export SMEs to improve their management

capacity, enhancing competitiveness, and thus, capturing market opportunities for export and

development.

Support programs may include financial and technical supports, particularly those to assist

SME managers to master export markets to reduce risks in export (Hang 2016). The research of

Shamsuddoha (2009) on the impact of export support programs on SMEs in developing countries

shows that market development supports have a great and direct impact on export activities.

Meanwhile financial services have indirect effects only. However, the effectiveness in accessing

export promotion and support services also depends on the ability of the SMEs, especially their

management capacity. Therefore, support programs should pay attention to improve management

capacity for SME managers, focusing on raising awareness, providing sufficient and timely in-

formation, as well as organizing seminars and consulting activities.

Countries all over the world have been creating various supports for their agricultural export

SMEs. For example, polices to support agricultural product export of Korea includes 6 items:

programs to develop export products; quality and safety control programs; customs assistance

programs; programs to develop domestic supply chains; programs to build pioneering foreign

distribution networks; programs to provide information and advice. Although Korea is not ad-

vantageous in exporting agricultural products, with their adequate support programs, including

information and advice provision, the conditions and opportunities of Korean SMEs to join in-

ternational markets have significantly facilitated (Sang Hyeon Lee 2018).

2.3. Vietnam Context

Vietnamese Agricultural Export

In Vietnam, along with other important export sectors such as garments and leather shoes,

agriculture has been a sector using significant local labor resources. Agricultural export has played

an important role in Vietnam’s economy because it employs more than 70% of the population,

facilitating the development of other manufacturing industries. When agricultural export is main-

tained stable and growing, the whole economy has more development opportunities and condi-

tions. The role of agriculture in stabilizing Vietnam’s economy has been demonstrated in practices.

Vietnam’s agricultural products such as rice, coffee, pepper, cashew nuts, dragon fruits, etc. have

been exported to many countries, in which the US, EU, Japan and China are major markets. Re-

cently, the increasingly sophisticated and rigorous protection policies from these markets have

created great challenges for Vietnamese exporters. In addition to global standards, each country

also has its own specific requirements, mainly related to technical-environmental standards such

as labeling regulations, food safety regulations, regulations on voluntary certification (ISO 14001;

organic agriculture, SA8000 ...). These requirements imposed numerous challenges for Viet-

namese SMEs, which are still characterized by limited capital, experience and scale.

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Because Vietnam’s agricultural products are mainly exported to developed markets, tech-

nical standards that Vietnamese SMEs are facing are higher than those in other low-end markets,

which significantly impact Vietnamese export enterprises. In the short term, it causes difficulties

for Vietnamese agricultural export SMEs to immediately meet such standards, and thus, a number

of SMEs had to shift to export to other markets (Tuan 2015). SMEs, which still want to continue

to access to these difficult market, have to accept standard testing, paying fees, which may reduce

their competitiveness in these markets. And this is the challenges that Vietnamese agricultural

SMEs are facing.

Playing an important role in the country’s economy, Vietnamese agricultural export SMEs

firmly need supports from local and government agencies. In addition to training, further support

programs such as consulting activities, seminars and websites should be provided to Vietnamese

agricultural export SMEs to improve their management capacity to overcome technical barriers.

Vietnamese SMEs in Agricultural Export and Supports to enhance Management Capacity

to overcome Trade Barriers

SMEs are an important component of Vietnam’s economy, accounting for 98.1% of the

total number of operating businesses, contributing about 45% of GDP, 31% of total stage

budget, and creating jobs for over 5 million workers. The number of SMEs engaged in agricul-

tural production and export accounts for a large proportion due to socio-economic characteris-

tics of Vietnam.

Vietnamese enterprises in the agriculture sector are mainly small sized with the limited

production scale and capacity, making them difficult to meet requirements related to both quality

and quantity of products. In fact, most foreign partners tend to import a large and stable volume

of goods. Because of a small scale, Vietnamese agricultural export SMEs have to collect agricul-

tural products from farmers, which make it difficult to meet the requirement of great volume of

importers, as well as those of the product sameness. Besides, due to purchasing raw materials

from farmers, in many cases, SMEs cannot control the origin of products, which directly impacts

the capacity to meet technical standards of foreign markets. Another significant difficulty en-

countered in the export process of SMEs is high logistics and shipping costs. Besides, the current

Vietnam’s logistics system for agricultural export has not effective enough for the preservation.

The limitation in accessing to capital, credit sources, and capacity to conduct international trade

are other challenges of Vietnamese agricultural export SMEs. Also, these SMEs are often limited

in collecting information related to price and customer, hard to access to export markets and to

promote products in international markets.

Therefore, it is an urgent need for government agencies to develop support programs for

Vietnamese agricultural export SMEs. In fact, although a number of support programs have been

implemented, their effectiveness has not been really affirmed and met the requirement from mar-

kets. Besides assisting SMEs access capital and technology, building management capacity for

such SMEs is also an important content. Training policies and other supports to provide timely

information via formal and informal channels is certainly needed. Thanks to the development of

information technology, besides providing and exchanging information via offline seminars, the

development of websites and portals to regularly maintain and update information should be

highly considered.

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3. Research Methodology

This study examines support programs other than training activities for Vietnamese SME

managers to improve their management capacity to successfully export agricultural products,

overcoming international technical barriers. Investigating the training needs is considered an im-

portant premise for the development of appropriate support programs, meeting the needs and

fully solving the difficulties that Vietnamese SMEs are facing. To explore such training needs,

qualitative research is considered to be the most appropriate.

In this study, qualitative methods were conducted in the format of semi-structured inter-

views with 124 managers of Vietnamese agricultural export SMEs. Participants have a variety of

management positions, locations, sizes and age of enterprises, as well as export markets of agri-

cultural products. Such SMEs come from cities/provinces such as Quang Ninh, Nam Dinh, Ninh

Binh, Yen Bai, Lai Chau, Thai Nguyen, Lang Son, Hoa Binh, Son La, Hai Duong, Bac Giang ...

Of the 124 surveyed enterprises, 61 were joint-stock companies (61%) while 63 were lim-

ited companies (50.81%). Enterprises participated in various business sectors, from investment,

manufacturing, trading, exports of agricultural products such as tea, sugar cans, coffee, fruit and

vegetables, organic food, etc. The number of enterprises with the labor force smaller than 10

workers was 20 (16.13%), from 10 to 200 workers was 91 (73.39%), from 200 to 300 workers

was 13 (10.48%). In terms of capital scale, the number of enterprises with capital less than VND

10 billion was 42 (33.87%), from VND 10 to 20 billion was 43 (34.68%), from VND 20 to 100

billion was 39 (31.45%). The number of enterprises with operational history shorter than 3 years

was 22 (17.74%), from 3 to 5 years was 34 (27.42%), from 6 to 10 years was 32 (25.81%), from

11 to 20 years was 27 (21.77%) and longer than 20 years was 9 (7.26%). The surveyed enterprises

showed diversity in their export markets, with most enterprises exporting to China (52 enterprises

– 41.49%), EU (19 enterprises – 15.32%), US (4 enterprises – 3.23%) and other markets (49 en-

terprises – 39.53%). Other markets include South Korea, India, Iran, Taiwan, Laos, Singapore,

Russia, Hungary, Belarus, Afghanistan, etc. The diversity in genders, products and market was

regarded as a quite great success of the research as it ensures the multi-dimensional opinions

from respondents.

With the reference of state officials in provinces/cities, the researcher actively approached

to export SMEs. The introduction of previous interviewees to new interviewees also assisted the

researcher in expanding the research sample, reflecting the usefulness of “snow-ball” technique.

The researcher actively connected with the potential interviewees to set up the meeting. The in-

terviews took place at the convenient places such as the managers’ offices and at suitable time

such as after working hour. Each interview lasted for about 30-45 minutes and were recorded.

After being collected, the data is analyzed with a qualitative data analysis method, sug-

gested by Creswell (2014). Accordingly, the researcher organizes data, reads-through interview

records, codes, develops topics and organizes data, interprets and presents research results. Re-

search findings were presented in the forms of descriptions classified into the main and subordi-

nate subjects with instances and opinions provided by the interviewees from different angles.

The subjects of the descriptions were based on the contents which were analyzed from the inter-

views. Examples and opinions of the interviewees were quoted in the finding presentations to

keep the ‘feel’ of the recipients as well as create the ‘liveliness’ in the real business situations,

thereby increasing the persuasiveness of the qualitative research findings.

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4. Results

4.1. Consulting Activities and Seminars to improve Management Capacity

4.1.1. Consulting Activities

Consulting Topics

Consulting on export markets

From the view of SME managers in this study, consulting activities can be conducted in

specific topics. It can be consultancy for penetrating into general export markets or specific ones

such as target markets, potential markets, or consultancy on certain agricultural products.

For the managers of Vietnamese SMEs which are new to export activities, or are preparing

for export, it can be “consulting on selecting, researching and approaching appropriate target

market” (M_95). While those for current exporters can be “consulting on market changes and

solutions to adapt to such fluctuations” (M_124).

Consulting on export industries & on manufacturing technology

Besides consultancy on approaching export markets, Vietnamese SME managers also

needed other consultancies “to choose export sectors and products” (M_124) or to develop and/or

innovate products to meet the needs of target export markets.

For SMEs exporting agricultural products, production technology is always a key factor

for success, thus SME managers in this study showed the need for “technology support and con-

sultancy” (M_110). In particular, to satisfy technical requirements in agricultural exports, the ad-

vice on production technology to produce environmentally friendly products, to preserve the

freshness for agricultural products is extremely important.

Consulting on legal & policy issues

Vietnamese SME mangers in this study also wanted to be consulted on topics related to

laws and policies in order to conduct export activities smoothly and effectively. This can be “ad-

vice on banking policies such as incentive interest rates to stimulate SMEs’ exports” (M_122),

advice on procedures and documents required in agricultural export, or in-depth consulting on

technical standards applied for their agricultural export products.

Consulting on export technical standards

Consultancies on topics related to technical standards to overcome trade barriers have re-

ceived great attention of Vietnamese SME managers in this study. From their view, export tech-

nical standards are always complex and changing rapidly, so experts’ advice on this issue may

greatly assist them in meeting the requirements of international partners, especially in initial deals

in new foreign markets, or when exporting new agricultural products.

In-depth consultancy on agricultural export & on arising issues

Understanding the differences between exporting and trading in the domestic market, SME

managers in the study also showed the need for in-depth consultancies on agricultural export.

These can be consulting on export process, or on solving problems that may arise when exporting

agricultural products.

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Although SME managers are required to self-solve problems arising in export, there are

many situations where SME managers need in-depth consulting to take advantage of business

opportunities as well as to avoid big loss. For example, problems encountered when agricultural

products were exported to a foreign market but did not satisfy the technical standards set in this

market. At this time, in-depth consulting from experienced experts is strongly needed.

Consulting Administration

With regard to above consulting topics, Vietnamese SME managers in this study expected

to receive ‘the consultancies from both Vietnamese and foreign experts, especially the skillful

ones” (M_49), as well as “consultancies from experienced SME managers exporting in the same

export fields” (M_100).

4.1.2. Workshops /Seminars

In addition to consulting activities, Vietnamese SME managers in this study also expressed

the need to participate in workshops/ seminars to improve their management capacity to overcome

technical barriers standards in agricultural export. Such mangers expected to be provided with

useful information related to their export fields at these workshops/ seminars.

Workshop/ Seminar Topics

Workshops on international business trends & updated changes in export policies & laws

To begin with, SME managers in this research expressed their desire to participate in work-

shops/ seminars to gain an overall understanding of the international business context, thereby

being able to “update international business trends which may lead to the changes in technical

standards” (M_113). They also wished to participate in seminars to update changes related to

export policies and laws. These can be “workshops on governmental support mechanism and

policies”(M_74), or “seminars on banks’incentives such as preferential interest rates to stimulate

export activities of SMEs” (M_122).

Workshops on general technical standards & those applied in particular nations

From the view of SME managers in this study, topics related to particular technical stan-

dards in agricultural export should also be included in the workshops/ seminars. Not only knowl-

edge provided, the SME managers also expected to learn from experiences of experts or other

SME managers in coping with such technical standards. More specifically, seminars to clarify

technical standards and requirements of particular markets and nations were also addressed by

the SME managers.

Workshops on agricultural export, Specific agricultural export products & Agricultural

technology

Topics related to export activities and agricultural export in particular were also addressed

by SME managers in this study. Furthermore, specialized seminars on agricultural export products

such as coffee, dragon fruit, and vegetables are topics that the Vietnamese SME managers wished

to join. In such specialized seminars, knowledge related to these export products such as potential

export markets, relevant laws and technical requirements should be discussed in more detail to

provide necessary preparation for SME managers. As shared by one SME managers “I wish to

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participate in seminars to gain information about laws, markets, products, technical standards

in coffee export, as well as to develop networks with domestic and foreign enterprises in the same

field” (M_85).

Vietnamese SME managers in this research also wished to participate in seminars on sci-

ence and technology in order to earn more knowledge and better apply advanced technology in

manufacturing and exporting agricultural products.

Workshops on Vietnam’s key export markets & Vietnamese agriculture

A wish to get a full understanding of target export markets was shared by Vietnamese ex-

porters in this research. They expected to participate in “workshop on business environment of

some countries that Vietnam aims to export to” (M_84).

Moreover, sufficient understanding of Vietnam’s agriculture and key export products is an

important knowledge that SME managers expected to be equipped during seminars. As shared

by one manager

“I wish to participate in workshops on Vietnam agriculture to gain a deeper understanding

of Vietnam’s major export agricultural commodities, barriers imposed to agricultural export, as

well as general and specific technical standards applied for agricultural products” (M_121).

Workshop/ Seminar Administration

Joining workshops, in addition to acquiring knowledge, SME managers also wished to get

further benefits such as to develop networks and/or to seek and share export opportunities

Workshops to develop relationship with international agricultural partners

Understanding the benefits of international integration, managers of Vietnamese agricul-

tural export SMEs in this research also expressed their desire to participate in seminars to expand

networks with international agricultural partners, including individual and organizational partners.

For example, one SME manager shared his desire to participate in “seminars connecting Viet-

namese agricultural SMEs with partners from difficult markets such as Korea and Japan”

(M_77).

Workshops to seek & share export opportunities

One of the most important reasons for SME managers to attend workshops is to look for

export opportunities. They look forwards to opportunities to “meet and share knowledge and ex-

port opportunities with Vietnamese and foreign partners” (M_75). In particular, particular sem-

inars for SME managers exporting similar products such as coffee, dragon fruit, or approaching

similar markets were the need of SME managers. By doing so, SME managers may cooperate,

support each other and jointly deploy export contracts successfully. Especially, under the influence

of international and regional trade policies, Vietnamese SME managers in this study wished to

participate in the conference to “connect Vietnamese enterprises to business partner from coun-

tries which signed trade agreements with Vietnam” (M_86).

Workshops to earn export experience

With the aim of improving management capacity to overcome technical trade barriers,

SME managers in this study also expected to “learn from other export SMEs’experience, espe-

cially from those operating in the same fields” (M_99).

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Understanding above wishes of Vietnamese SME, from the sharing of Vietnamese SME

managers in this study, workshop organizers should provide opportunities for them to maximize

their benefits. For example, there should be the participation of both Vietnamese and foreign ex-

port partners. The seminars for SMEs exporting the same products or approaching the same mar-

kets should be created to help them share experiences as well as co-operate in seeking and

implementing contracts. The workshops calling the participation of the presentative of foreign

business associations also help SME managers better understand the requirements of specific

markets and develop networks with partners from these nations.

4.1.3. Trading Promotion Activities

Vietnamese SME managers in this study also wanted to receive supports related to trading

promotion activities for export. They believed that this kind of promotion may help them to “de-

velop favorable relationships” (M_89), and especially to “promote and introduce agricultural

products to different markets” (M_98). Through promotion activities, SMEs also earn better un-

derstanding of the markets, particularly requirements related to technical standards.

4.1.4. Business Fieldtrips

Business fieldtrips to earn practical experiences, including short courses on management

or workshop to share business opportunities from both Vietnamese and foreign partners are also

activities that SME managers want to join. When it comes to workshop organized during field-

trips, the involvement of not only SME managers and foreign partners but also state support agen-

cies was perceived useful by SME managers in this study.

Table 1: Consultancies and seminars to improve management capacity to overcome

echnical trade barriers needed by Vietnamese agricultural export SME managers

Consulting activities

Consulting on export markets

Consulting on export industries & on manufacturing technology

Consulting on legal & policy issues

Consulting on export technical standards

In-depth consultancy on agricultural export & on arising issues

Workshops /Seminars

Workshops on international business trends & updated changes in export policies & laws

Workshops on general technical standards & those applied in particular nations

Workshops on agricultural export, Specific agricultural export products & Agricultural tech-

nology

Workshops on Vietnam’s key export markets & Vietnamese agriculture

Trading promotion activities

Business Fieldtrips

Source: Authors

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4.2. Developing Electronic Information Portals and Websites to improve Management

Capacity

In the era of industrial revolution 4.0, accessing to useful information through the devel-

opment of electronic portals and websites was also a content that SME managers in this study

wanted to be supported. They perceived portals and websites as a source of “providing prompt,

timely, regular and accurate information for agricultural export SMEs” (M_73). These channels

are considered as a reliable source when export SMEs need accurate information to deploy export

transactions.

Following are some kinds of online information that Vietnamese SME managers wish to

receive via the channels of portals and websites

Online information on export market/ products & on specific agricultural products

SME managers in this study wanted to get online information about markets that they are

exporting to, as shared by one SME manager “We need accurate and updated information on

websites to better understand market needs to make adjustment properly” (M_57). In addition,

the SME managers also expected to get online information about specific export products, such

as “detailed information about coffee products and markets on websites” (M_85).

Online information on legal regulations & on technical standards

From the view of Vietnamese SME managers in this study, export laws and policies are

constantly changing, therefore they needed to be updated legal regulations related to technical

standards in agricultural export on websites. The guidance and notices for SMEs to manufacture

products to meet specific requirements of export markets are also a content that Vietnamese SME

managers expected to acquire via websites.

Online Information Administration

When it comes to online information, it could be delivered to SME managers via various

channels such as portals, websites or online manual guidance book. Manual guidance documents

may provide SME managers with detailed description about technical requirements in specific

markets, as well as instructions to overcome these barriers. Besides, online information may also

be delivered via online consultancies and seminars. Online seminars may provide more opportu-

nities for SME managers – who live far away from big cities where traditional seminars are often

organized. Also, online seminars may better call the involvement of business partners from many

countries.

Table 2: Developing electronic portals and websites to improve management capacity to

overcome technical trade barriers, needed by Vietnamese agricultural export SMEs.

Online information on export market/ products & on specific agricultural products

Online information on legal regulations & on technical standards

Source: Authors

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5. Implications

As discussed in the previous section, supports provided to assist Vietnamese SMEs to over-

come technical barriers may include consultancies and seminars, as well as portals and websites

to provide information for export SMEs. SME managers, based on their current export capacity

and accessibility conditions may select the appropriate programs to join. Also, government agen-

cies may develop further suitable supports in accordance to the needs shared by SME managers.

5.1. Promoting Consulting Activities and Seminars

Consulting activities and seminars providing updated information on agricultural export

markets for SMEs should be regularly organized. Recently, agricultural markets are always dif-

ficult to predict and evaluate. Governments in export countries often make changes in laws and

policies to cope with such market fluctuations. New regulations on tariffs and non-tariff measures

are therefore increasingly sophisticated, resulting in challenges for exporters, including Viet-

namese agricultural export SMEs. In order to proactively react and deal with changes from mar-

kets, especially from difficult ones, the government supports to provide adequate and updated

information on agricultural export is strongly needed. In particular, supports related to technical

trade barriers should also be highly considered as it affects directly to the export performance

of SMEs.

Besides issues related to laws and technical requirements, consultancies/seminars may

cover topics such as developing/ selecting appropriate export products and markets. Seminars

may include the discussion on exporting specific agricultural products such as coffee, dragon

fruits, and the introduction on technical trade barriers of some specific markets such as China,

Australia, and the US. In particular, seminars on technology solutions to help SMEs standardize

their process of manufacturing may bring many practical lessons for SMEs. There should also

be in-depth consultancies for SME managers when they need to urgently solve problems encoun-

tered during the export process.

As expected by SME managers in this study, consultancies should be delivered by both

Vietnamese and foreign experienced and skillful experts. Also, support organizations should turn

the workshops/ seminars into opportunities for export SMEs to share, cooperate and work together

to overcome technical barriers, enhancing efficiency of agricultural export.

Trading promotion programs should be innovated in both organizing methods and relevant

parties involved. There should be more focus on organizing effective fieldtrips for SMEs. It is

also necessary to strengthen the coordination between 3 parties: Government, trading promotion

organizations and SMEs. In trading promotion, SME cooperation and competition should be seen

as the basis for forming and developing networks, gradually eliminating the dependence of SMEs

on the state’s current trading promotion and programs. Trading promotion organizations need to

increase the provision of trade promotion support services to SMEs such as providing information

about markets and competitors; offering advice and legal consulting to help SMEs solve problems;

connecting SMEs with state agencies and customers in order to seize opportunities and prevent

threats in export markets. Trade counselors at Vietnamese Embassies in foreign countries should

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actively provide information, support and advice to domestic SMEs to better understand and ac-

cess foreign markets. Export SMEs themselves need to regularly provide the promotion agencies

with updated information about their products, be more proactive in researching markets, cus-

tomers’ needs to create appropriate product development strategies. The coordination between

relevant parties not only helps SMEs in updating knowledge, but also in implementing export

activities, especially in handling disputes related to international technical trade barriers. Viet-

namese trade promotion agencies needs to develop a program to promote and strengthen the sup-

port activities of the Business Support Centers by expanding more centers in localities, providing

fees for these centers to support more SMEs across the country.

5.2. Promoting electronic information portals and websites

Portals of state agencies should be developed to disseminate new policies and inform mar-

ket changes in order to assist SMEs to update information timely. Based on that, SMEs can ana-

lyze, evaluate and make adjustment in terms of management or business plans. In particular, for

new SME exporters, detailed online information under various formats such as manual guidance

may help them to comprehensively and fully acquire knowledge to limit risks in violating the

regulations.

Websites developed by support associations or state governance agencies should help

SMEs to promote their products. This can be seen as the bridge between SMEs and state agen-

cies, facilitating state organizations to manage and provide support timely to SMEs. Stage

agencies from central to local levels should complete the construction of their portals, timely

update information on the web portals. In addition, there should be support for each SME to

establish their own business websites to introduce products, promote their brand and approach

customers more effectively.

Based on support needs expressed by the Vietnamese SME manager in this research, web-

sites should have regular updates on regulations and laws, especially international technical stan-

dards. This information may be in the form of general information, or specific introduction and

instruction about particular export markets or products. In addition, online seminars on websites,

with the participation of foreign importers should be organized as they are useful for many export

SMEs from different regions in Vietnam.

Furthermore, there should be more supports focusing on developing e-commerce activities

for agricultural export SMEs, including constructing information technology infrastructure, de-

veloping media campaign and organizing discussions to raise awareness about the role of e-com-

merce. Workshops on IT knowledge and how to use and exploit information on the internet, the

role of websites and how to develop online business should also be organized.

6. Conclusion

By using in-depth qualitative research methods, the paper has discussed the perceptions of

Vietnamese agricultural export managers with regard to support programs to assist them better

export, overcoming technical trade barriers. Accordingly, they wished to receive supports from

consulting activities and seminars, as well as receive information from portals and websites to

enhance management capacity. Based on such support needs, relevant agencies may develop ap-

propriate support programs to meet the actual needs of SME exporters. However, the paper also

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has some limitations. Due to the time constraints, almost SMEs participated in this study are from

the north of Vietnam. The paper just focuses on general support programs, does not specify into

supports for particular products and/or specific markets. These is the suggestions for further stud-

ies to fulfil the research gap.

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Kubey, R, Csikszentmihalyi, M., 2013, Television and the Quality of Life: How Viewing

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Sang Hyeon Lee, 2018, Support Policies for Exports of Agricultural Products in Korea

Shamsuddoha, A. A., 2009, Impact of government export assistance on internationalization

of SMEs from developing nations. Journal of Enterprise Information Management, 408 - 422.

Sousa, C. M., 2009, “Effects of export assistance and distribution support on the perform-

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32-44.

List of Participants

Code

Position

Location Firm type

Limited

Business field

Manufacturing

Labour Capital

Age

Main

markets

(people) (million) (year)

M_49 Head of Sale Dep. HCMC

M_57 Head of Sale Dep. Ha Nam

10-200 10-20

11-20 US

Company and exporting agri-

(LC) cultural products

Joint Stock Manufacturing

10-200 20-100

6-10 China

Company and exporting agri-

(JSC)

cultural products

M_73 Director

Ha Nam

LC

Agricultural in-

vestment and de-

velopment

<10

3-5

Others

M_74 Vice Director

Nam Dinh JSC

Manufacturing

export agricultural

products

10-200 20-100

11-20 China

11-20 Laos

M_75 Head of Sale Dep. Son La

JSC

Manufacturing

and exporting agri-

cultural products

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M_77 Head of Sale Dep. Son La

M_84 Head of Sale Dep. Son La

LC

Agriculture

10-200

10-20

3-5

Korea

EU

Manufacturing

and exporting cas-

sava

200-300 20-100

10-200 20-100

>20

M_85 Head of Sale Dep. Son La

M_86 Head of Sale Dep. Son La

LC

Manufacturing

and exporting cof-

fee

6-10 EU

JSC

Manufacturing

and exporting sug-

arcane

11-20 China

M_89 Head of Sale Dep. Son La

JSC

Manufacturing

and exporting agri-

cultural products

10-200 20-100

200-300 10-20

3-5

EU

M_95 Director

Bac Giang LC

Agricultural in-

vestment and de-

velopment

11-20 Russia

M_98 Director

M_99 Director

Bac Giang JSC

Investment and

trading

Manufacturing

export agricultural

products

<10

20-100

11-20 China

10-200 20-100

M_100 Director

M_110 Director

Bac Giang LC

Food

<10

<3

China

Vegetables

10-200

10-20

M_113 Head of Sale Dep. Hai

Duong

JSC

Manufacturing

and exporting agri-

cultural products

M_121 Head of Sale Dep. Hai

Duong

Manufacturing

export agricultural

products

10-200

<10

3-5

China

Others

M_122 Head of Sale Dep. Hai

Duong

Manufacturing

export agricultural

products

M_124 Vice Director

Quang

Ninh

Manufacturing

export agricultural

products

10-20

142