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Industry News | Time: Nov 24 2015 9:11AM
Vietnamese government eyes diversified exports
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Vietnam will reform the structure of export goods and increase quality of export products to strive for sustainable exports and increase its value by this year-end and beyond.

The Ministry of Industry and Trade (MoIT) said that Vietnam could achieve its export value target of 165 billion USD for this year, an increase of 10 percent against last year, but the ministry has recognised that the nation has unreasonable structure of export products.

For example, the export value of mobile phones of Samsung Vietnam alone occupied up to 20 percent of the total national export value, Tin tuc (News) newspaper quoted Deputy Head of MoIT's Export Import Department Tran Thanh Hai as saying.

In fact, Vietnam's structure of export products lacked balance because they are mainly manufactured by foreign direct investment (FDI) enterprises which account for two-thirds of the total export volume.

Therefore, Hai said, besides improving the export of local enterprises, Vietnam should diversify its export products, and seek out other goods with a potential to increase export value in a bid to avoid dependence on some key products.

The ministry said local enterprises focused on exporting some key products such as textiles, garments, leather, and footwear, in addition to processed seafood and wooden products, which are heavily dependent on increasing volumes, leading to unsustainable export growth.

Hai said the industry and trade sector should have solutions in place to create more reasonable changes in the structure of export goods, and usher in more investment for the creation of brands. This would increase their value.

MoIT Deputy Minister Tran Tuan Anh said the important factors were the ability and long term strategies of local enterprises in building brands based on production cost and quality, and the ability to meet the standards in export markets.

The local enterprises must enhance their competitive edge while approaching export markets and build a reasonable market strategy based on their ability in production and business, Anh said.

Vietnam should also seek new export markets and not just new products. The nation has signed many bilateral and multilateral free trade agreements so it would have more favourable opportunities to expand its export markets, according to the ministry.

Even though the ministry's relevant bodies have so far reduced administrative procedures to ease enterprises, the ministry admitted that local enterprises still needed more policies to solve their problems with regard to production and business.

Do Ha Nam, General Director of Intimex Joint Stock Company specialising in farming exports, said the Government should offer incentives for FDI enterprises with high-tech facilities and limit FDI enterprises to specialising in trade and processing of raw farming and seafood products to increase the value of Vietnamese products.

Nguyen Duc Hong, Deputy General Director of Thong Nhat Rubber Ltd Company, said the Government should offer tax exemptions for components used for producing export goods.

Source: VNA
[RISK DISCLAIMER] All opinions, news, analysis, prices or other information contained on this report is provided by analyst of Zhejiang Huarui Information Consulting Co., Ltd (CCFGroup) as general market commentary and does not constitute investment advice. CCFGroup will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
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