Organization of export management companies was keyed
The head of the Iran Trade Development Organization announced the review of the ranking of export management companies and the implementation of the export readiness index.
According to Mehr reporter, Mohammad Ali Dehghan Dehnavi, head of the Iran Trade Development Organization, today at the event "Seven Days with Exports" focusing on export management companies (EMC) at the Tehran Chamber of Commerce, emphasized the need to develop specialized mechanisms to increase the competitiveness of exporters, and referring to the gap between Iran's export performance and the country's economic capacities, he said: despite the progress made in the field of non-oil exports, there is still a possibility of increasing the volume and value of exports, and using the power of export management companies can be a platform for presence. Provide more effective Iranian goods in international markets.
Iran's export capacity is beyond the current performance
Referring to the performance of the country's non-oil exports last year, he added: the value of Iran's non-oil exports reached about 52 billion dollars; A figure that is equivalent to one billion dollars of export per week on average.
Comparing this figure with Türkiye's export performance, Dehghan Dehnavi said: Türkiye's merchandise exports are about 350 billion dollars, and this country exports nearly 1 billion dollars on an average daily. This comparison shows that Iran needs more effective planning to exploit its economic capacities and increase its share in world trade.
He listed oil and gas resources, energy, mines, the possibility of developing production chains and added value, as well as expert and entrepreneurial manpower among the country's economic advantages and emphasized: Iran's export capacity is not limited to the current level.
low value of export goods; A challenge in the development of foreign trade
Referring to the low value of Iran's export unit, Dehghan Dehnavi said: the average value of each ton of the country's export goods in different years was around 300 to 400 dollars; While the average value of each ton of imported goods usually reaches about 2 thousand dollars.
According to him, this difference shows the significant share of goods with low added value in the country's export basket. In some cases, Iranian products are sold in the market with a multiple value after processing in other countries; While it is possible to carry out some of these processes inside the country.
The head of the trade development organization emphasized: export development should not be focused only on increasing the volume of foreign sales, but completing the value chain, processing products and increasing the added value of export goods should also be prioritized.
How does the cooperation of companies reduce the cost of entering global markets?
Referring to the necessity of cooperation between economic enterprises, the head of Iran Trade Development Organization considered export consortia and export management companies as important tools for strengthening the presence of Iranian producers in foreign markets.
He explained: One of the forms of economic cooperation is the participation of companies that have similar capacities and needs. In the field of export, this cooperation can be formed in the form of export consortia and reduce the costs of entering new markets.
To explain this issue, Deputy Minister Samet pointed to the cost of market research and said: If conducting a specialized market research costs $200,000, the participation of 10 companies will reduce this cost to $20,000 for each company. In case of participation of 20 companies, the contribution of each will reach 10,000 dollars, and with the participation of 200 companies, it will reach 1,000 dollars.
According to him, such collaborations enable small companies to access specialized market information and in the next stages can lead to the creation of a common brand, setting cooperation agreements and formulating rules to prevent destructive competition among members.
The head of the Iran Trade Development Organization further considered the export management companies as an example of cooperation between groups with different capabilities and added: these companies can provide services to several small and medium enterprises to enter the target markets by relying on their specialized knowledge, business experience and international connections.
Emphasizing the need to improve the quality of these companies' services, Dehghan Dehnavi said: simply registering a company with the title of export management is not enough to provide professional services. Such a group should have knowledge, experience and effective communication about their specialized markets and products and be able to pave the way for companies to enter the target market.
The specialized ranking of export companies was put on the agenda
The head of the Iran Trade Development Organization announced the revision of the rating guidelines for export management companies with the aim of more accurately evaluating the real capabilities of these groups and said: In the framework of this revision, the ranking of companies is done based on their ability to provide specialized services to economic enterprises. Based on this, the number of companies with first rank has become more limited, but the possibility of activity and promotion of position for other companies is still there.
Dehghan Dehnavi added: Companies that are placed in lower ranks can start their activities, develop their expertise and gradually reach higher ranks.
He mentioned the determination of target countries and specialized product areas as other axes of this program and said: export management companies should determine in which markets they have sufficient knowledge, communication and capacity and in which areas they can provide professional services.
According to the head of the Trade Development Organization, this approach, in addition to organizing the existing companies, can also provide the basis for the entry of new powerful groups into the export management business.
price competition and quality loss; A threat to the credibility of Iranian products
Dehghan Dehnavi considered the unprofessional activities of some exporters as one of the challenges of the country's exports and said: supply of low-quality goods, unreasonable reduction of prices and short-term view of the market can damage the reputation of Iranian products and brands in foreign markets.
He added: Some economic activists, without a specific plan for continuous presence in the target markets, are only looking for temporary sales of products; An approach that, if continued, can reduce the confidence of foreign buyers.
The head of the Trade Development Organization emphasized: Using the capacity of export management companies and export consortia can help guide less experienced companies, strengthen healthy competition and prevent the destruction of target markets.
Referring to the experience of some export markets, especially in the field of agricultural products, he said: In some cases, the supply of a large volume of products in a period of time has caused the sale price of Iran's export goods to drop even lower than its domestic price in the destination market.
According to him, export organizations should play a more effective role in managing supply, maintaining customers and preventing the loss of reputation of Iranian products.
Preparation of companies for export under the microscope of Trade Development Organization
The head of the Iran Trade Development Organization announced plans to implement the Export Readiness Index; An index that is supposed to evaluate the level of readiness of economic enterprises for professional activity in international markets.
Dehghan Dehnavi explained: This evaluation can start from examining the basic requirements; including whether the product has a catalog, brochure, technical specifications and specific standards or not. Having a website, international business section, contact information and necessary infrastructure for business activity can also be considered in this evaluation.
He added: In more advanced stages, this index can provide more accurate criteria for measuring the capabilities of companies and determining the minimum requirements for professional presence in foreign markets.
The head of Trade Development Organization emphasized: The purpose of implementing this program is not to suddenly ban exporters' activities, but the main approach is the gradual and encouraging implementation of the evaluation system.
According to him, companies that are not yet sufficiently prepared for independent export can enter foreign markets through cooperation with export management companies or consortiums and gradually increase their capabilities.
Referring to the possibility of linking the export readiness index to support services, Dehghan Dehnavi said: the services of business consultants, business centers and export incentives are among the areas that can be organized based on the level of readiness and capacity of enterprises.
Stating that the Trade Development Organization has trade advisers in 18 to 19 countries, he added: "Evaluating export readiness can help to use the capacity of advisers more effectively and direct specialized services to companies that are suitable for these services."
The head of the Trade Development Organization also considered strengthening the sources of export incentives and coordinating among the support providers as requirements for creating an effective incentive system.
According to him, such an approach can encourage companies to create the necessary infrastructure, increase export readiness and move towards more professional activity in global markets.
export management; A business with the capacity to generate income and develop the market
The head of the Iran Trade Development Organization invited competent groups to enter the field of export management and said: Companies that have market knowledge, commercial connections and the necessary capacity to develop the sale of Iranian products in the target countries can pursue this activity as an independent business.
Referring to the economic benefits of this area, Dehghan Dehnavi stated: an export management company can provide its specialized services to existing manufacturers instead of investing directly to create several factories and share in the economic benefits of this activity by providing a sales market for their products.