Industry and Trade Sector: Pinning Hopes on Export and Domestic Consumption

The industrial production rose 15.1 percent year on year to VND70.8 trillion (US$3.7 billion) in September, totalling VND574.5 trillion in the first nine months of 2010, up 13.8 percent year on year and above the expected plan. Particularly, the non-state sector witnessed an increase of 12.7 percent water while the foreign-invested sector saw an expansion of 17.4 percent. Key industrial sectors such as electricity, processing, steel, garment and footwear had high growth rates.

 

Notably, exports increased four times compared with the plan approved the National Assembly - the highest lawmaking body. The country’s exports valued US$6.1 billion in September, bringing the five-month export value to US$51.5 billion, up 23.2 percent over the same period of 2009.

 

In particular, foreign-led companies contributed US$213.7 billion (excluding crude oil) in the three quarters, up 40.1 percent on year. According to authorities, 13 commodities were forecast to exceed US$1 billion export revenue threshold in the first nine months, an increase from three commodities from a year earlier, including coal, rubber and steel.

 

Higher prices of many exports were attributed to a rise in nine-month export value. Price factors alone picked up the value by US$2.5 billion. Asian markets remained major importers of Vietnamese commodities, accounting for about 48 percent of the market share.

 

For the first time in many years, the trade deficit to export turnover was low. According to statistics, the trade deficit totalled US$8.57 billion in the first nine months, equal to 16.6 percent of export turnover.

 

The domestic market also expanded robustly in the first three quarters. Total retail revenues of goods and services were estimated at VND134,879 billion in September, a slightly rise from August, bringing nine-month value to VND1,146,161 billion, up 25.4 percent over the same period in 2009. The domestic market was very dynamic, trade promotion programmes were actively implemented, the supply of goods and services was guaranteed during major public holidays, especially, the 1,000-year founding anniversary of Thang Long-Hanoi.

 

With the target of capping CPI growth at 1.5 percent in the fourth quarter to realise the full-year CPI growth target of 8 percent, the Ministry of Industry and Trade has worked out many solutions, including reducing price pressures, ensuring sufficient supply, boosting consumption of Vietnamese goods and equipment to curb trade deficit, and minimising power outages.

 

Speaking at a reviewing meeting in September, Minister Vu Huy Hoang told companies to continue to focus on production, investment, export and import to realise targets the Government assigned to the Ministry of Industry and Trade.

 

As there are many important events in the fourth quarter, Minister Hoang asked companies to coordinate with provincial/municipal trade and industry authorities to prepare reserves, supply enough goods and participate in balancing supply and demand and stabilising prices.

 

The minister requested market watchdogs to coordinate with provincial/municipal departments of industry and trade and localities to strengthen market control, ensure a good supply of essential commodities such as petroleum, fertilisers, steel, paper, cement, rice, pharmaceuticals while imposing strict punishments on acts of speculation, hoarding, price escalation and trade fraud.

 

To provide enough electricity to consumers, the ministry instructed the power sector to actively deal with difficulties and put forth solutions for the remaining months of the year and in 2011.