Vietnam has set an ambitious target of earning more than US$58 billion from exports in 2008, an increase of between 20-22 percent from 2007, according to the Ministry of Industry and Trade (MoIT).

The figures were announced by the MoIT at a national conference in Hanoi on December 19 to review export achievements in 2007 and map out plans for 2008.

In a report, MoIT Deputy Minister Nguyen Thanh Bien said that the agro-forestry and fisheries sector expects to rake in US$10.65 billion from exports, crude oil and coal US$9.7 billion, processed commodities US$28 billion and other groups of commodities US$10 billion.

Vietnam’s major importers are Japan, other ASEAN member states, China, Taiwan, Hong Kong, the European Union, the US, Canada and Australia. The country will continue to explore traditional and new markets such as Russia, the Middle East, Latin America and Africa.

Solutions 

MoIT experts said that to achieve the target, the customs sector should continue to shorten clearance time for import-export goods and perfect the financial, credit and investment mechanisms for export activities. They underlined the need to establish an export insurance fund to support businesses in the face of drawbacks from international economic integration.

Many experts from craft associations said that to boost exports, it is necessary to strengthen personnel training along with mapping out specific export schemes for each group of commodities and markets. They said that trade promotion is one of the key solutions for revving up exports and this activity should be give due care in 2008.

Le Quoc An, President of the Vietnam Textiles and Apparel Association proposed that Vietnam build a strategy aimed at promoting the image of the national fashion industry, particularly for clothing, jewelleries and handbags. 

“If this activity is done well, garments exports may reach US$15 billion,” said Mr An. 

He also asked for the development of human resources in each industry. He pointed out the fact that most industries such as garments and fisheries compete with each other for skilled labour. In addition, he said that though Vietnam has an abundant and skilled workforce, managers are not qualified enough to work in a competitive environment.

Meanwhile, Nguyen Huu Dung, General Secretary of the Vietnam Seafood Exporters and Processors (VASEP), said that most employees in the fisheries sector are untrained and they learn from their predecessors.

At the conference, Deputy Prime Minister Hoang Trung Hai said that though exports in 2007 increased by 20.5 percent against 2006, the figure was lower than the 2006 growth rate compared to 2005, standing at 22.8 percent. He asked the fisheries, fruit and vegetables and rubber sectors that achieved growth rates of less than 20 percent in 2007 to examine and devise solutions to their weaknesses.

He urged the MoIT to boost trade promotion and market forecasting activities to support industries such as garments, footwear and woodwork which achieve high annual growth but face difficulties in the near future due to a chronic lack of material. He also asked the MoIT, other relevant ministries, sectors to iron out snags for businesses, particularly in tackling administrative procedures.

Import surplus – a thorny issue

Vietnam’s imports in 2007 are expected to increase by 31 percent against 2006 to reach US$59 billion, or US$11 billion higher than exports. Experts forecast that import surpluses would remain high next year, given the fact that the national economy relies on imported material and machinery. They shared the view that it is not easy to reduce the import surplus over the short-term.

To gradually solve this thorny issue, MoIT Deputy Minister Bien said that industries such as garments, footwear and woodwork sectors should develop accessories that are imported in large quantities and their imports make up 70-80 percent of exports. He also said that more investment should be poured into support industries, as well as producing domestically high competitive products like animal feed.

Last but not least, Mr Bien said that it is necessary to enhance the dissemination of information to encourage local consumers to use home made products.