What is the import-export industry? Basics and trends

Import-export activities are currently considered the backbone of most economic sectors, one of the main activities driving the global economy. Therefore, updating knowledge about the import-export industry is also a top priority that businesses are interested in.

1.What is the Import-Export Industry?

The import-export industry is international trade activities related to the buying and selling of goods and services between countries. Import-export industry includes two main activities:

• Export is the process of selling goods from one country to other countries. The goods will be sold to consumers or businesses in that country.
• Import is the process of buying goods or services from another country for consumption and use in your own country.

2.The importance of import-export industry in international trade

The import-export industry plays an important role and determines the development and integration of economies globally.

2.1.Economic development, creating many new career opportunities

Exports play an important role in promoting a country's economic development. By moving goods and services through international markets, countries can take advantage of themselves to create new sources of income and increase revenue for businesses and individuals in their countries. Thanks to that, job opportunities are increasingly expanding and creating income for the country through export taxes and related taxes.

2.2. Create global business opportunities and increase competitiveness

Import-export helps businesses expand their market reach, creating opportunities to put goods and services within the reach of global consumers. This not only creates new business opportunities but also enhances international reputation. Businesses can take advantage of import-export opportunities to access new technology and raw materials from other countries, helping them improve product quality and enhance competition in the international market.

2.3. Global connection and cooperation

Import and export create a global business environment, enhancing interaction and connection between countries. This integration not only promotes economic cooperation but also strengthens cultural and political ties between countries. When countries are linked through imports and exports, they tend to develop more peaceful relationships. Economic interdependence creates incentives to maintain a stable environment and reduce the risk of conflict.

3. Basic concepts in the import-export industry

There are a number of basic concepts related to the import-export industry that people participating in international trade need to understand. Here are some important concepts:

• Supply Chain:

Is a system of steps and processes from the time a product is produced until it reaches the final consumer. Supply chain management requires a solid understanding of logistics, transportation and storage.

• Customs and import and export taxes:

These are the rules and taxes that apply while goods move across national borders. These rules include customs procedures and import and export taxes, and they can significantly affect prices and profits.

• Shipping and Insurance Process:

These are important aspects of import and export. The shipping process includes choosing the means of transportation (rail, sea, air) and insurance to help protect goods against risks during transportation.

• Balance of trade:

Is the difference between the export value and import value of a country. If the value of exports is greater than the value of imports, that country may have positive trade, and vice versa.

• Exchange rate:

It is the exchange of currencies between countries in the process of international trade. Exchange rates have a significant influence on the value of goods and services in international markets.

4. Trend of effective combination between technology and import-export

4.1. New technology in supply chain management

In the context of the import-export industry, applying technology to the supply chain is not only a trend but also an important key to success and efficiency. Here are some highlights of new technology in supply chain management:

• Supply Chain Management (SCM) Software: Applying SCM software helps optimize the process from supply to point of consumption, minimizing time and costs. This not only enhances predictability but also reduces risk and increases transparency in the supply chain.

• IoT (Internet of Things) In Logistics: IoT technology is integrated into supply chain management to track and manage goods from origin to destination. This helps improve shipping processes, minimize loss and increase goods security.

• Blockchain for Safety and Transparency: Blockchain is used to increase transparency and ensure the security of information in the supply chain. This reduces the risk of fraud and helps confirm the origin of the product.

• Document management software: With a large number of documents, using document management software will help businesses easily manage contracts and related documents, avoiding loss or misplacement. unnecessary consequences

4.2. Application of artificial intelligence and data analysis in import and export.

Artificial intelligence (AI) and data analytics are playing an increasingly important role in the import and export industry, bringing flexibility and smart decisions. Here's how their application can improve performance in import and export:

• Inventory Forecasting and Optimization: Using data analytics and artificial intelligence helps forecast market demand and optimize inventory management, minimizing the risk of unnecessary inventory.

• Pricing Decisions and Market Strategy: Analyze market data and use artificial intelligence to help make competitive pricing decisions and build flexible market strategies that reflect market fluctuations. market.

• Supply Chain Safety and Risk Management: Apply AI to predict and manage supply chain risks, from climate change to shipping incidents. This helps increase flexibility and safety in the import and export process.

In general, import and export is a spearhead that is being prioritized to help promote the global economy. To be successful, businesses need to regularly update information and knowledge about the import-export industry and apply technology to their businesses. import and export management and enforcement activities. Don't forget to follow other articles on 1C Vietnam's website to learn and update more useful information about corporate governance.