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Trade Off: AFTA Import, Export Issues (11/5)
11/05/2011 - 13 Lượt xem
Export Promotion
After escaping the situation of deflation, Vietnam saw a rapid growth rate in export in 2010. Export value hit US$71.6 billion, an increase of 25 percent compared to 2009.
In 2011, the first year implementing the five year plan of economic development (2011-2015), the Ministry of Industry and Trade take initiative to make import - export plan to fulfill targets. Although the economy has still seen chaos, export has faced difficulties, in the first months of this year, the country has obtained high growth rate in export. Export value of the first four months of this year totaled US$26.94 billion, an increase of 35.7 percent from the same months.
Taking part in ASEAN Free Trade Area (AFTA) agreements with China, India, Australia, New Zealand, Republic of Korea and Japan and processing free trade agreements with the EU, the US, Vietnam has enjoyed special treatment in terms of tax. However, according to experts, Vietnamese businesses has not taken advantage of this opportunity, therefore, the percentage of export goods that enjoy this special treatment is still small. There are two reasons: businesses lack market information and have not got used to with procedures to enjoy special treatment. As a result, Vietnamese businesses are losing their opportunities to expand export market.
In addition, in the situation of fierce competition in international market, export promotion programs have still seen weaknesses, thus, weakening competitiveness of Vietnamese goods in the international market. In the post-crisis period, countries have increased protecting domestic economy through commercial protection methods. This has created many challenges for Vietnamese businesses in exporting their goods.
According to Ministry of Industry and Trade experts, Vietnamese businesses should focus on exploiting traditional markets on which they have reached free trade agreements. They should enhance market information and increase efficiency of trade promotion programs. In addition, there is a need for businesses to pay attention to new markets, especially potential market in Eastern Europe, Western Asia, Southern Asia, Middle East, Africa and Latin America.
Furthermore, the ministry has helped businesses and farmers overcome difficulties through methods to strengthen producing and exporting traditional products, potential products and products with large export value.
The ministry has policies to promote producing and exporting processed products towards increasing exporting products which have high added value and reducing raw products which have low economic value. In addition, the ministry has policies to reserve some key agricultural products and sell them at high price.
Trade deficit reduction
With enormous efforts, the industry and trade sector has made contribution to reduce trade deficit. In 2008, trade deficit accounted for 28.5 percent of export volume. In 2009, this figure was 21.6. In 2010, trade deficit was about US$12.3 billion, accounting for 17.3 percent of export revenue. In the first four months of this year, this figure was US$4.9 billion, equal to 18.2 percent of export value.
These are encouraging results, making important contribution to economic development. However, according to AFTA agreements with China, India, Republic of Korea, Japan, Australia and New Zealand, from 2011, tax reduction will be imposed on more types of products with the level of reduction to be increased, creating more pressure on import. This requires timely methods or else trade deficit will become a challenge to macro economic stability.
According to many economists, there are some reasons for trade deficit. Many weaknesses have still existed in support industry, the exchange rate between Vietnam Dongs and US dollars has increased in recent years and there is an increase in import of luxurious products.
The Ministry of Industry and Trade has checked investment project structure and continued to build policies to encourage producing export products, products that can replace import ones and reduce investment in non-production area.
The ministry has also proposed methods to plan essential material and fuel production to replace import products, boosting controlling unnecessary import products and the products which can be made within the country.
To reduce trade deficit, Minister of Industry and Trade Vu Huy Hoang said: "It is necessary to grasp all opportunities to enhance export and foster implementation of Decision 12/2011/QD-TTg dated February 24, 2011 by the Prime Minister on promoting support industries and Decision 1412/QD-BCT on March 28, 2011 by the Ministry of Industry and Trade issuing action plan for Decision 12/2010/QD-TTg."/.
Source: VEN
