Vietnam secured an export growth rate of 19.6 percent in the first seven months of 2007, but failed to meet the 20 percent target set for the whole year. What are the causes behind the failure?

Vietnam fetched US$26.8 billion in exports in the past seven months, an increase of 19.6 percent from a year ago. In fact, the growth rate is 2.2 percent higher than the target set by the National Assembly. However, the trade sector renewed the target of more than 20 percent at a national trade conference held earlier this year. Prime Minister Nguyen Tan Dung who attended the conference encouraged the sector to realise the new target.

The failure was attributed to a fall in export value of crude oil, standing at US$4.43 billion, down 11.3 percent against the same period last year. Total volume of crude oil export also dropped 8.6 percent and export price down 3 percent. Bike and spare parts exports also decreased by 37 percent.

However, nine key export staples which attained high export growth rates included coffee, coal, electronics and computer accessories, handicrafts, wood products, plastics, electrical wires and cables, bags, cases and umbrellas. As a result, the seven-month export growth rate hit approximately 30 percent, excluding crude oil.

Do you think that the trade sector will achieve the set target in the remaining months of the year?

I am confident that the target of a 20-percent export growth rate will be achievable. The sector notched up US$36.9 billion from exports last year and is set to rake in US$48 billion this year. The sector secured a monthly export value of US$3.8 billion in the past seven months, and US$4.2 billion in July alone.

If we maintain the monthly figure of US$4.2-4.3 billion from now till the end of the year, the target of earning US$48 billion in export turnover will be achievable. It is forecast that the set target could be even surpassed as bustling export activities often take place by the year’s end.  

What kinds of export items will have strong growth in the remaining months of the year?

Vietnam’s key export items have proved competitive in the international economic integration process. They include crude oil, garments and textiles, footwear, seafood, wood products, electronics, computer, rice, coffee, rubber, cashew nuts and pepper. I believe that the key products will help Vietnam achieve its target of US$48 billion in export turnover this year.

However, Vietnamese seafood enterprises have recently faced difficulties in the Japanese market. In addition, the prices of coffee and tea for export tend to reduce. How do these factors affect the export growth target in the remaining months of the year?

During Vietnam’s integration into the world’s economy, trade disputes are unavoidable. Japan and other EU countries have imposed food hygiene and safety standards on Vietnam’s aquatic products. The important thing is that Vietnam should be ready to learn about international norms and the laws of these countries to avoid lawsuits. When exporting products into foreign countries, it is very important for Vietnamese enterprises to be serious to do business in line with the regulations of the countries.

Regarding the reduction in the prices of coffee and tea, I think Vietnamese coffee fared well in the first six months of the year, with a spectacular export turnover increase of 102 percent over the same period last year. It is normal that the prices of these products would decline after reaching the peak. Basically speaking, such factors would not really affect Vietnam’s exports in 2007.

Source: VOV