Viet Nam should see an export surplus by 2010, according to the Ministry of Trade's strategy on socio-economic development. Under the ministry's plan for the period ending in 2010, the country's trade deficit must decline to 12 percent this year from 14.8 percent last year.
The ministry said that the trade deficit has seen a recent trend of decline. In 2005, the figure hit 4.75 billion USD, down from 5.11 billion USD in 2003. This year's trade deficit is expected to level out at around 4-4.5 billion USD.

In the first three months of this year, the export surplus reached 56 million USD.
The ministry reported that businesses and State offices must do more to reach the target of a surplus by 2010, particularly since the trade deficit decline was going slowly and demand for raw production materials would likely increase sharply in the future.

The ministry's experts said that Viet Nam should enter the World Trade Organisation as quickly as possible to create the best conditions for expanding export markets.

They suggested that the government enact policies to restrain the import of goods that can be produced domestically, and that industry focus on producing garments and textiles, footwear, electronics, computer parts, bicycle and bicycle parts, electrical wires and cables, and wooden and plastic products.

Export enterprises were told to increase the quality and value of their goods, particularly seafood, coffee and cashew nuts.

Experts warned local businesses to avoid falling into the trap of creating an import surplus from EU and US markets, areas the country has had success in exporting goods to. "The country must be careful not to create an import surplus with ASEAN trade partners," said the ministry.
Economists also cautioned domestic enterprises about letting trade deficits get out of hand. Between 2001 and 2005, foreign direct invested firms had an outstanding export surplus of 12.6 billion USD, while domestic firms had an outstanding trade deficit of 31.96 billion USD.
These figures indicate that the domestic sector has not yet taken advantage of export markets and will face even greater challenges when Viet Nam cuts import tariffs in the coming years.

Source: Vietnam Agency