HİT Global Founder İbrahim Çevikoğlu answered the question of what should be the right perspective when evaluating exports. Exports, which have taken the lead in Turkey's agenda in recent years; The interest of industrialists, producers and economic circles is growing. HİT Global Founder İbrahim Çevikoğlu answered the question of what should be the right perspective when evaluating exports in this context.
İbrahim Çevikoğlu, Founder of HİT Global, stated that after the rapid increase in the exchange rate that Turkey has experienced especially since 2018, Turkish companies have turned to exports at a significant rate and there has been an export mobilization throughout the country for the last 5 years. a source of pride, but while focusing on exports, we should not miss the fact that approximately sixty percent of Turkey's exports are based on imports. Since we import semi-finished products and raw materials for export, our steps must be taken carefully and in a planned manner. In this sense, improving the current import supply chain with better alternatives should come before profitability in exports.” made its assessment.
IMPORT IS AS IMPORTANT AS EXPORT
Çevikoğlu said that although there are risks in changing the existing supply chain in imports, it is necessary to regularly search for alternative supply chains in order to gain from issues such as cost, quality and speed not only when selling but also when buying.
“A company produces sockets with plastic raw materials that it imports or buys from an importer, but when it replaces the raw material here with an alternative from Korea instead of the current import country, maybe it will buy at a lower price and with better quality. In this respect, one should always be in search of an alternative to the current import. Of course, finding alternative supplies in imports is a risky issue. Because the exporter does not want to take the risk of the quality of the product he will produce because he trades and sells the goods he buys. But to give the figures of last year, Turkey has an import of 354 billion dollars and an export of 254 billion dollars. In other words, we have a foreign trade deficit of 110 billion dollars. An important part of this is actually energy, but it is very important to consider alternative supply channels on the semi-finished product side, that is, when purchasing raw materials. That's why I don't look at it only as exports, exports increased. Imports should also be considered. That's why our topic is Turkey's foreign trade.”
In this context, Çevikoğlu said that in addition to exports and imports, another concept should be taken into consideration and concluded his words as follows:
“Even if it seems a bit complicated and difficult, the most advanced foreign trade model in the world is transit trade. In other words, the process of producing a product in a country and selling it directly to the buyer country. I give an example; A Turkish firm selling a product produced in China to the United States without visiting Turkey, and being able to do it wholesale. I anticipate that our country will turn into a separate production base for the whole world in a few years, with the availability of labor force in our country, logistical advantages and the recently commissioning of resources that will reduce energy costs. Of course, at this point, it is possible to say from today that there will be serious demands in the future of many countries in order to make transit trade for the product they bought from us to countries other than their own country. In this context, transit trade, which is an issue that will affect Turkey's foreign trade perception and future, should be one of our country's long-term model targets.”