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MYKOLA ZASULSKYI: “THE FUTURE OF UKRAINE LIES WITHIN GLOBAL ECONOMY”
– Why is the matter of export now so important for Ukrainian manufacturers?
– The Chamber’s most important task today is to draw our members’ attention to the possibility of exporting their products. What are the benefits?
First of all, the culture and technological level of production increases along with the competition level; in addition, one is exploring the world experience. The company that exports its goods or services meets the international standards and can compete not only on the global, but also on the domestic market.
Second, export accounts for almost a quarter of Ukraine’s income; this means huge amounts of money and, therefore, requires the closest attention. Third, the fund flow in the foreign currency offers financial support for a company’s activities. And most importantly, export development attracts more labor force, which enables us to create new jobs and offer the employees competitive salaries.
I can say for sure, now there is a declining tendency of Ukrainian export and foreign trade. This tendency started to shape in 2012, continued in 2013, and was on its highest pace in 2014-2015. This is a really disturbing note.
The challenges our domestic businesses have to face are far from simple; without export, we cannot solve our national issues, i.e. those factors that directly influence the constant development of the Ukrainian economy.
– Is the declining tendency present in all the countries, or are there any exceptions? If yes, in which directions?
– The declining export tendency can be observed in practically all countries. We have certain statistical data: within 4 months of 2016, the export rate has in increased only to such countries as Thailand (75%), Hong Kong (45.6%), India (37.7%), Indonesia (35.4%), and other East-Southern countries. Indeed, these countries are happy to accept our goods, and this should be supported. There is also a small increase of export to the EU countries – in the first 6 months of 2016 it drew up to 104.6%. Therefore, this should be taken into consideration as well.
To announce our manufacturers globally we invite Ukrainian companies to international exhibitions. This year alone we will participate in 8 exhibitions abroad, namely in Africa, Asia and Europe. We have already been to Tehran, Barcelona, and are about to visit Paris and Dubai. The main focus of these exhibitions lies within the agricultural sector, agricultural products and the production of equipment for processing agricultural products.
– What should the manufacturers that plan to enter new markets know in the first place?
– First of all, those who aim to enter new markets should study those territories and markets where they plan to sell something. This can be done alone or with the help of specialized companies. The Kyiv Chamber of Commerce and Industry provides analytical reports according to the customers’ requirements on certain markets.
Second, one should find a partner and get relevant background information – ensure how reliable the partner is and whether he will not let you down in further cooperation. The diplomatic sector of our country can be rather useful here, as it is now making a big effort to support our enterprises. We always sense the help from diplomatic missions of Ukraine abroad. We get some information from those missions about the country we arrive to along with offers about the assistance of local companies to our manufacturers. This assistance includes information about entering a certain market and acquiring partners.
Next, one should develop a business plan that takes the legislative specifics of a certain country into account, and, finally, search for some partners. But the most important thing is to evaluate to which extent your goods or services are competitive.
– Among the directions of Commerce and Industry Chambers is helping Ukrainian companies to enter the foreign markets. What kind of help do they offer and what are the most effective activities?
– Surely, Commerce and Industry Chambers focus their attention towards assisting its members, mainly while entering foreign markets. This is also written in the Rules of the KCCI, and we possess practically everything to offer assistance in those cases. Last year, we did 5 trips, 4 of which were to international exhibitions – to Germany (twice), to the UAE (Dubai), to Southern Africa, and we also took a business delegation to Uzbekistan. In total, 49 Ukrainian enterprises presented their goods and services at international events. Second, in order to learn how to sell and don’t get into trouble, you have to learn constantly. For these purposes, the Chamber organizes seminar cycles, colloquiums, and other events in the Center of Business Education. Those events assist our business representatives. Last year, about 90 of these events with around 2000 attendees took place under the auspices of our Chamber. Some members entered a traineeship in Austria as we organized the trainings directly within foreign countries. I guess that this is an effective assistance of our Chamber members. Unfortunately, sometimes our enterprises face indecent clients. In these cases, legal mechanisms come into force; in the most severe situations, the issues are solved within the International Commercial Arbitrary Court at the Ukrainian Chamber of Commerce and Industry. I have to say that those cases are not rare; we deal with the quality and quantity of products that do not meet the agreement prescriptions as well as the violation of delivery terms.
In addition, we organize business missions and receive delegations from other countries. We conduct direct negotiations, as, for example, during the International Trade Club conference. The Trade Club incorporates more than 60 commercial attaches that are accredited in respective embassies in Kyiv. I consider this activity of high effectiveness, and numbers speak for themselves. For example, in 2016, 25 representatives from embassies accounted for 120 organizations who were interested in negotiations with these countries’ representatives. However, we won’t be able to enter the international markets quickly. With hard work and patience, we will make our dreams come true!
