Domestic industrial consumer goods have basically met domestic demands and have been exported to the world markets. Production value of the consumer goods industry has always accounted for over 40% of the total production value of the whole industrial sector. Export turnover of industrial consumer goods has also occupied from 40% to 50% of the total export turnover with a growth rate always higher than the average growth rate of the country.

Some industrial consumer sectors have contributed significantly to the common achievements of the whole industry sector. These include garments and textiles, footwear, alcohol and brewery, milk products, paper and handicraft.

Most notably, Vietnam has taken advantage of an agricultural country to develop processed agricultural, forestry and seafood products. These products not only meet domestic demands, but are exported with increasing export turnover as well.

Nevertheless, as Vietnam has become a member of the World Trade Organisation, the challenges for domestic consumer goods manufacturers are not small at all.

Vietnamese industrial consumer goods, though having basically met domestic demands and been exported, are not diversified in designs and varieties. Moreover, their quality is lower than many imported products of the same kinds, especially those imported from China, Thailand and Indonesia. The localised and value added proportions of the industrial consumer goods sector are still low. Most of the products exported are in implementation of processing contracts, thus Vietnamese products have not created trademarks and reputation for their own on the domestic and international markets.

Many sectors in the industrial consumer goods industry also rely heavily on imports of materials and accessories.

In addition, the human resources have not met the demands in both quantity and quality.

2007 is the first year that Vietnam has become a member of the WTO. Thus, the key targets of the industrial consumer goods sector is to speed up investment and production, increase the competitiveness, maintain the domestic market share and expand the export markets.

The industrial consumer goods sector targets a 21.6% growth in 2007, compared to 17.1% growth of the whole industry sector.

To this ends, businesses should pool all resources for development investment, focusing on investment to increase the production capacity and modernise technology and equipment.

Each business should work out a correct investment strategy which is suitable with their financial and management capacity. Investment should be poured in advanced equipment and technology so as to be able to produce products of high quality to conquer the domestic market and for exports.

Efforts should also be made in strengthening the programme to cut production costs, increase productivity so that Vietnamese industrial consumer goods will have a lower or the same prices with products of the same kind in the region.

An other measure is to boost the application of technological and scientific advances and other management systems such as ISO 9000, ISO 14000 an SA 8000. Ensuring food safety in production is an essential measure to build prestige and trademarks for the products, thus increasing competitiveness in the context of integration.

Priorities should be given to development of products of high export potentials such as electronic appliances, computers, plastic products and processed food; bringing into full play the production capacity and exports of industrial consumer goods of high competitive advantages such as garments and textiles and footwear.

Trade promotion should be promoted with focus on traditional markets including the EU, the major potential market of US and expanding new markets such as Africa, South America and the Middle East.

Importance should be attached to the role of goods associations in connecting businesses for information, settling disputes, and creasing strong competitive positions with goods imported to Vietnam from other countries as well as on the foreign markets.

The State managing agencies needs to study to build policies to facilitate domestic businesses in expanding markets, fighting smuggling and counterfeited goods, etc. WTO commitments needs to be popularised so as to help businesses to thoroughly understand the commitments and take initiative in increasing the competitiveness in the context of international economic integration.

Functional agencies should also boost the administrative procedures, practice thrift, fight against profligacy and corruption.

Source: Nhan Dan