Opportunities and Challenges

Discussing the advantages of the export markets in 2013, Deputy Minister of Industry and Trade Tran Anh Tuan said that Vietnam's major importers such as the US, EU and Japan, have launched stimulus packages to help "warm up" consumer demand in those countries, which has somewhat opened up opportunities for Vietnam's exports. More importantly, many of Vietnam's major export products such as textiles, footwear, seafood, wood are increasingly confirming their quality and are trusted by international consumers. In particular, a number of industrial products and commodity groups such as electronics, electronic components, mobile phones, mechanical products, vehicles, machinery and equipment over the past year have shown their resilience via impressive export figures. It’s very likely that this year those figures will increase more sharply.

 

Deputy Minister Tran Anh Tuan shared that the economic situation in the country in the first months of 2013 has seen positive changes. Particularly, production is gradually coming in orbit, inflation and monetary policy has also been controlled, which facilitates production and export activities of businesses. The government is actively implementing various solutions to remove difficulties for enterprises.

 

However, besides certain advantages, export activities in 2013 also face many challenges stemming from increasing protectionism in many countries. Several countries and regions are increasingly offering measures to protect domestic enterprises through exchange rate policy, anti-dumping, trade defence. This will greatly affect export activities of Vietnamese enterprises. Regarding the situation in the country, bad debts and inventories continue to affect export growth of enterprises, especially small and medium enterprises.

 

Export in 2013 is forecast to be very difficult due to fierce competition pressure. The commercial counsellors also expressed their concerns about the weakness of Vietnamese enterprises. Mr Nguyen Trung Dung, Commercial Counsellor of the Embassy of Vietnam in Japan shared that Vietnamese businesses not only are facing large competition pressure, but also have to bear burdens such as increasing input cost and narrow output and high interest rate. Vietnamese Commercial Counsellor to Australia Nguyen Bao fears that Vietnamese enterprises are still weak in market development, partner searching, product output, etc.

 

According to Deputy Minister Tran Tuan Anh, to successfully realise the export target, Vietnam needs to identify challenges and opportunities in 2013 to take measures to promote export and control import properly. The role of information and connection between businesses is very important. Currently, under the direction of the Ministry of Industry and Trade, Vietnam businesses in foreign countries have played their role of a repository to provide information about the latest economic situation and markets in the host countries. The businesses have also actively supported many Vietnamese delegations in market survey, advise enterprises in import and export contract negotiations and product promotion; advise and protect the rights of domestic businesses in case of disputes. Deputy Minister stressed that in this year and the next year, businesses should focus on improving the efficiency of business support. This is an indirect measure to help increase the competitiveness of Vietnamese enterprises and Vietnamese products in the international arena.