While the trade surplus is a noteworthy achievement after several years of deficits, it is also worriesome because gold has accounted for nearly half of the exports and rice for most of the remaining commodities, Bien said at a recent meeting jointly organised by the ministry and the HCM City administration.

The meeting aimed to speed up measures to help importers and exporters overcome difficulties to maintain production and businesses.

According to the ministry, Viet Nam’s exports reached US$8.5 billion in the first two months of the year, an increase of 19 per cent over the same period last year.

The highest increase was seen in gold exports, which hit $939 million, an 80-fold year-on- year increase. Rice exports followed with $497million, up by 2.5 times . Pepper and coffee also did well with respective increases of 86 per cent and 74.4 per cent.

In the remaining months, Vietnamese businesses will certainly face fierce challenges as markets in the US, Japan and EU shrink and export orders fall.

Acting chairman of the Viet Nam Cashew Association Nguyen Thanh said that early this year export orders have dropped by 50 per cent over last year.

The association estimates cashew exports at 150,000 tonnes this year, a drop of 67 tonnes from last year.

Hurdles remain

Almost all businesses have claimed difficulties in accessing the 4 per cent interest rate subsidy on bank loans granted by the government to help them tide over the difficult times.

Tran Quoc Manh, director general of Sadaco joint stock company said very few businesses have accessed preferential bank loans, especially small-and medium-sized enterprises in local provinces that are particularly targeted by the subsidy.

Many enterprises have proposed that preferential bank loans are given to export enterprises that are labour intensive.

Quite a few enterprises have also complained about complicated tax procedures, as well as inconsistent regulations on tax reduction and exemption which put them at a disadvantage and hurt production.

To fight economic depression, maintain economic growth and ensure social security, the enterprises want the government, ministries and sectors to give priority for labour intensive establishments, those producing and/or processing goods for export, as well as raw material producers.

Truong Dinh Tuyen, member of the National Advisory Council on Financial and Monetary Policy, agreed that besides their own efforts, enterprises needed support from the government and other agencies to boost exports and achieve the export growth target of 13 per cent set for this year.

Source: VietNamNet/CP