Hanoi (VNA) – Vietnam can achieve a whopping 56 percent annual rise in
export turnover this year to reach 275 billion USD, a senior official has said.
Minister-Chairman
of the Government’s Office Mai Tien Dung said at a press conference on October
3 that this achievement is possible with concerted efforts by all stakeholders
including businesses, ministries and agencies.
If
the target is achieved, it would far exceed the target of 188 billion USD set
for the year. The target was later revised to 202 billion USD.
Dung,
who based his statement on a new report by the Ministry of Industry and Trade
(MOIT), said exports had already posted an impressive 19.8 percent year-on-year
increase in the first nine months of the year.
According
to the General Statistics Office (GSO), exports by the domestic sector in the
first nine months touched 43.2 billion USD, a 16.8 percent increase, while
those of the foreign-invested sector was 110.8 billion USD, an increase of 21 percent.
The
US remained the largest consumer of Vietnamese goods with 31.2 billion USD, followed
by the EU and China with 28.4 billion USD and 21.9 billion USD, respectively.
Import
turnover during the first nine months jumped 23.1 percent year-on-year to 154.5
billion USD, with imports by the domestic sector touching 61.3 billion USD, an
18.7 percent increase, and that of the foreign-invested sector rising 26.1 percent
to 93.2 billion USD.
China
continued to be the largest importer of Vietnamese goods with 41.6 billion USD,
a year-on-year surge of 15.6 percent. The Republic of Korea (RoK) and ASEAN
came second and third with 33.9 billion USD and 20.6 billion USD, respectively.
Vietnam’s
trade deficit for the periods is estimated at 500 million USD.
The
trade deficit incurred by the domestic sector totaled18.08 billion USD, and
that of the foreign-invested sector was 17.64 billion USD.
Potentials,
challenges
Experts
have said that the growth potential for exports is very high, with Vietnamese
goods and commodities present in nearly 200 countries and territories.
Along
with the focus on exports to key markets with high purchasing power like the
US, the EU, Japan, RoK, China and ASEAN, Vietnamese goods have also expanded to
Africa and Latin America.
However,
the country is expected to face many obstacles and challenges ahead, including
competition from other countries dealing in similar commodities and goods,
pressure from anti-dumping lawsuits, and other trade barriers arising out of
increasing protectionism in importing countries.
Moreover,
Vietnamese exports are still focused on scale and quantity rather than quality
and value, the experts said.
Tran
Thanh Hai, Deputy Director of the MOIT’s Export Department, said that although Vietnam
had joined the global supply chain, its role remains modest.
The
country’s export turnover was still heavily dependent on exports of FDI
enterprises, with their contribution much higher than that of domestic firms.
Besides,
Hai said, FDI firms have not supported local businesses in strengthening their
presence in the global supply chain.
The
under-developed supporting industry is also hindering domestic firms by forcing
them to import a large quantity of components, he said.
Hai
also stressed that most Vietnamese enterprises have not fully grasped and
updated their knowledge of FTA provisions, and this restricts their ability to
make proper business plans before exporting.
He
said domestic firms need to increase their competitiveness by improving
corporate governance and applying technological innovations.
In
the processing and manufacturing sectors, enterprises will find it difficult to
sustain their exports if they ignore development of the supporting industry, Hai
said, adding this task must be accorded top priority.
He
said it was very important that the localisation rate in key industries like
mechanical products, electronic components and devices, textiles and footwear
increases significantly in the near future. -VNA