Seeking New Channels for Vietnamese Exports

This is considered as a worrying signal for the country in 2009. In an effort to boost export which has tended to slow down, the government, the Ministry of Industry and Trade and concerned agencies have actively sought new solutions.

Since late 2008, most of Vietnamese enterprises have highly supported policies of the government, ministries and agencies in assisting them to deal with difficulties. However, in reality, the assistance is not enough strong to help firms to overcome the challenging time as the biggest difficulty for wood processing companies is how to attract customers and expand export markets. This is due to high interest rates in 2008, leading to price hikes of wooden products and discouraging many customers. At the Fair for Handicrafts and Wood Processing to be held in Ho Chi Minh City on March 11, the organising board invited nearly 600 compared, much higher than 280 in 2008, including many from foreign countries. Participants contributed 20-50 per cent of fees to enter the fair. However, some 20 per cent of them withdrew one month ago. In the upcoming time, another 20 per cent of the participants would leave the event. It is a pity.

 

The wood processing industry is currently importing up to 80 per cent of materials while prices of wood materials are at low level and their transport prices are also decreasing. This is an opportunity for wood processors to buy materials for reserve. However, enterprises dare not do this as for preferential capital loans only lasts eight months meanwhile the time of contracts singed with customers is a year. If the government offers assistances for companies to buy reserve wood materials, the wood processing sector will have a chance to gain high export growth as the world market recovers.

 

Seafood firms are facing difficulties due to falling export value meanwhile prices of input materials, particularly shrimp and tra catfish are highly increasing. Since 2008, lots of farmers have stopped aquaculture because of huge loss. To have materials, many processors have to pour investment into aquatic breeding. The government should carry out capital assistance policies for aquatic companies.

In the context of economic difficulties, finding out solutions to recover production and export decides the survival of enterprises as well as marco-economic managers. However the problem is that we need to look for the most effective ones and try our best to implement them. Addressing at an conference to deploy Resolution 30/2008/NQ-CP set by the government and the recently-issued Decision 12/2009/QD-TTg by the Prime Minister in Ho Chi Minh, Deputy Industry and Trade Minister Nguyen Thanh Bien said the ministry will gather companies’ opinions as well as concerned agencies’ to implement these well. The key task for the ministry now is dealing with matters in the first quarter and the first half of the year to curb economic recession and export drop.

 

Regarding to opinions of several enterprises in foreign currency loans to import materials for export, Deputy Minister Nguyen Thanh Bien said the ministry will continue applying Decision 09 issued by the State Bank of Vietnam on foreign currency regulations. However, we can fully apply Decision 131, Circular 02 for export loans. Companies which import materials for export can be offered low-interest loans under the form of advance foreign currency. They can pay banks gained foreign currency.

 

To promote export, Bien said, companies, associations and sectors need to have proper understanding of national trade promotion programmes and join hands with the Ministry of Industry and Trade to carry out them. The ministry is seeking measures to support businesses in attracting customers and get more export orders. The expenditure source for trade promotion is enough, which is a factor to help enterprises to reach export goals. In terms of the fair to hold by the Ho Chi Minh City Handicraft and Wood Industry Association (HAWA) in March this year, the deputy minister asked the association to send a document the ministry. The ministry will work with relevant agencies to support the organisation. Associations, sectors and businesses need submit the ministry their events for 2009 trade promotion to get the government’s assistance to increase export. The ministry will also consider offering financial support for foreign companies which arrive in Vietnam to survey market and sign contracts. However, it will apply a strict supervision mechanism to prevent waste. Associations, sectors and businesses should submit the ministry trade promotion programmes abroad in which they have not taken part in.