First of all, I want to give a big thank to Teacher because of giving us this article. It attracted me a lot with the title “Doing business in VietNam”. This is an overview about Vietnamese market especially export sector. This article discusses mostly about relationship between innovation and export activities in SMEs. It is obvious that most of companies in Viet Nam are SMEs. (97% of firms in 2005)
In this study, they tried to explain how innovation is important in exportation. Frankly, Viet Nam imports much more than it exports. We mostly import materials, vehicle, machines and so on. In the opposite sight, more of our exportation focus on raw materials like herbs, coal, agriculture products and handicrafts. This article supposes that there are two kinds of innovation, they are product innovation and process innovation. Process innovation is a way to improve productivities and reduce production cost, while product innovation has an impact on trade performance in creating a new product or improving an existing one.
This article also supposes that the effects of process innovation on export is less strong than the effects of product innovation. In my opinion, I totally agree with this statement. Because products are our core value. Every activity around product is just to improve the value of it. So, product innovation has a bigger impact on the market than process innovative.
Finally, even innovation in product or process, they still stand in a very important roll to boost export activities. To improve export sector, we can expand market and have more opportunities for development.
