Industry & Trade Sector in First 6 Months: Export Still in the Limelight

Speedy exportation, controlled trade deficit, and expanding industry and domestic consumption are bright spots in the picture of Vietnamese industry and trade in the first half of 2011.

 

Industrial production value was estimated to reach VND418.47 trillion in the first six months of 2011, representing a year on year rise of 14.3 percent and increasing faster than the targeted rate of 14 percent. Monthly values also increased from corresponding periods in 2010. However, given the ongoing context, Vietnam has to spare no efforts in the last months to fulfil the export target set for the whole year.

 

Bac Ninh province recorded highest growth of 84.4 percent in the January-June period, far above the runner-up, Ninh Binh province with 48.6 percent. Some northern mountainous provinces saw very high growth rates, such as Dien Bien (28.19 percent), Tuyen Quang (27.1 percent), and Lang Son (24.8 percent).

 

Non-state economic sectors continued to leap in the reporting period. The foreign-invested sector took the lead with a 17.1 percent growth, higher the average growth of 14.3 percent. The State-run sector witnessed an annualised growth of only 5.3 percent.

 

Export turnover was forecast at US$42.3 billion in the six months, up 30.3 percent year on year, of which price factors contributed to 15.6 percent to the overall growth while the volume factors made up 14.7 percent. The result represented 53 percent of the full-year plan of US$79.4 billion.

 

Shipments to all markets increased. Although Africa took a small part of Vietnam’s exports, its growth was the highest at 71 percent, followed by Asia with 36 percent, Americas with 21.3 percent (exports to the US also climbed 21.3 percent), Europe with 20.4 percent (shipments to the EU zone surged 49.1 percent). However, exports to Australia slumped 19.4 percent year on year because of a reduction crude oil export.

 

The six-month trade deficit totalled US$6.65 billion, equal to 15.7 percent of exports and lower than the Government's desired 16 percent.

 

Total retail revenues topped some VND912 trillion in the first six months of 2011, up 22.6 percent year on year. The domestic market was more active, and trade promotion programmes were proactively deployed.

 

Total retail revenues topped some VND912 trillion in the first six months of 2011, up 22.6 percent year on year. The domestic market expanded while trade promotion programmes were proactively carried out.

 

Under the close leadership of the Government, the implementation of the Government Resolution No. 11/NQ-CP was strictly followed by central and local authorities, forcing prices to ease and gradually go down. However, price hikes were seen in most commodities in the year to date and a new level of prices was established.

The Ministry of Industry and Trade, with its functions and tasks, assigned has closely guided the market management authorities to intensify inspection and control over the market and prevent price-pushing speculation of goods.

 

In the first six months of 2011, market authorities unearthed 79,692 cases of violations and handled 43,694 cases, including 7,365 cases of smuggling and 5,699 case of manufacturing and trading counterfeited goods, and 6,307 cases of pricing violations, and 24,323 other violations. Fines collection amounted to VND140.6 billion, including on VND60 billion from administrative fines and nearly VND1.5 billion from fines on overdue taxes. The value of confiscated goods was nearly VND79.13 billion.

 

By stepping up the enforcement of the Resolution 11, the Ministry of Industry and Trade has put forth such solutions as: Reducing price pressures, ensuring supply, promoting sales of Vietnamese-made goods and equipment to restrain imports, and avoiding power cut.

 

Speaking at a regular meeting for June, Deputy Minister of Industry and Trade Nguyen Thanh Bien requested State-owned corporations and businesses in other economic sectors to continue focusing on implementing objectives that the Government assigned to the Ministry of Industry and Trade.

 

He added that businesses should coordinate with provincial/municipal departments of industry and trade to stockpile goods, balance supply and demand, and stabilise prices. Besides, companies were recommended to keep on with the “Buy Vietnamese” campaign (which encourages Vietnamese people to use made-in-Vietnam goods), trade promotions, rural sales campaigns, etc.

 

Besides, the Ministry of Industry and Trade requested market authorities to coordinate with provincial/municipal departments of industry and trade and other agencies to strengthen supervision and control over the market to ensure good supply of essential commodities such as petroleum, fertilisers, steel, paper, cement, rice and pharmaceuticals while strictly handle acts of speculation, price hike and trade fraud.