Increased Export of Environment Friendly Products

The average growth rate of import-export remained at 19 percent a year in 2001-2010. The export value increased from US$15 billion in 2001 to US$72.19 in 2010, or 4.7 times. The export turnover increased from 49 percent of GDP in 2001 to 70 percent in 2010. Another bright side is that Vietnamese export items are increasingly diversified. In 2004, Vietnam had only 6 export items worth over US$1 billion each, in 2010, the number increased to 18 with 10 export items worth over US$1 billion and 8 items worth over US$2 billion each. Vietnamese products have been exported to 220 countries and territories.

 

In the past 10 years, Vietnamese export has made great contribution to the economic growth together with consumption, investments and import. In particular, the stable and high growth in export in recent years have helped stabilize the macro-economy such as reducing trade deficit, balancing international payment, increasing reserve of foreign exchanges. In addition, the export promotion policy has also contributed to the environment protection and preservation of bio-sphere. The criteria of environment protection and food safety of many products have been upgraded.       

Indeed, there are unstable developments in Vietnam export. The added value remains low due to relying mainly on exploitation of natural resources and cheap labour. The export policy depends too much on quantity and less on quality and efficiency. Vietnam failed to develop competitiveness in technology and labour management so as to ensure exports of high competitiveness and high added value in global value chains. Furthermore, natural resources and bio-diversity are increasingly decreased. Many social problems occurred and without effective remedy. The profit has not been fairly shared, especially those from natural resources.

 

It is in fact a tendency of regional economic cooperation and in a large scale, the world economy. In addition to the lift of tariff and non-tariff barriers, FTAs also include commitments to free trade, service, investment, and even non-traditional areas such as labour criteria and environment. Vietnam has approached and participated in FTA quite early. It has been applied not only in ASEAN framework but also in relation to suitable partners and in the interest of integration strategy of Vietnam. In addition to traditional partners, Vietnam has recently engaged in FTA negotiation with Chile and participated as official member of Trans Pacific Partnership (TPP). FTAs such as ASEAN+3 (China, Japan and South Korea), ASEAN+6 (including also India, Australia, New Zealand) as well as bilateral FTAs with Russian Federation, EU and South Korea are under consideration.        

It is a long-term and complicated objective. It should be divided into short periods to ensure better orientation. For instance, in 2011-2015, Vietnam should focus on export of products of advantages in natural conditions and cheap labour such as aquatic products, agricultural produce, garments, electronics and products of average technology. In 2016-2020, the focus should be on new technology of high added value, attracting big investment inside and outside the country. The export will increase in environment friendly products with less consumption of energy and natural materials. Vietnam should also expand markets for products of high competitiveness, high added-value and big export turnover.