Strengthening Connectivity to Boost Exports

Industry and Trade Minister Vu Huy Hoang said: “In general, Vietnamese trade counsellors have proactively endeavoured to complete their assigned tasks and even outdo export orientation plans. Their roles are important to the overall success of the industry and trade sector. Vietnamese trade counsellors have formed a system to connect Vietnam with foreign countries and among foreign countries to ensure the successful task performance of the Ministry of Industry and Trade in foreign nations. The trade counsellor system has tradition, prestige and trust of local business community and high-profile contact address for international and foreign partners of the Ministry of Industry and Trade.”

 

Deputy Prime Minister Vu Duc Dam said 55 trade offices and 122 trade counsellors worldwide are too small in comparison with Vietnam’s export turnover achieved in 2013. Amid domestic and global economic slowdown, earning export turnover of more than US$132 billion, in excess of the National Assembly’s target, shows a great effort of trade and industry sector as well as trade counsellors.

 

However, foreign companies operating in Vietnam contribute a considerable part of the export turnover while domestic companies still play a minor role. Hence, he called domestic enterprises to strengthen connectivity and share the common voice in the market. Meanwhile, trade counsellors must have close coordination with domestic enterprises and act as a bridge for domestic companies to enter international markets.

 

Deputy Minister of Industry and Trade Nguyen Cam Tu, however, noted operations of trade offices still have a lot of limitations. Some trade offices lack coordination with localities, resulting underperformance of Vietnam’s key exports in some markets.

 

In reality, many importers tend to return to trade protectionism, causing more difficulties for Vietnam’s exports. This requires more efforts from the Trade Counsellors.

Mr Nguyen Ngoc Hai, Trade Counsellor to Iran, said: "After many contacts and exchanges with enterprises, I find that many companies complain about insufficient information about markets and export-import policies. In the time of Internet boom, it is unacceptable that companies have no information.”

 

He pointed out that enterprises are weak in seeking markets while trade promotion activities of Vietnamese localities are not good. Hence, they need to pay attention to these aspects.

 

Vietnamese Trade Counsellor to Japan Nguyen Trung Dung said: “There is a contradiction in trade promotion activities: Many economic agreements are dealt very well at macro level but very badly at local level. For example, the signing of TPP Agreement which is under negotiation will result in a sharp cut in taxes on agricultural products in Japan, many Vietnamese companies have thought that they could export much more of rice to this market without knowing that exports to this market must meet very strict regulations which may block all ways of Vietnamese rice to this market.”

 

International integration is rapid, especially in emerging economies. In 2001 - 2013, GDP of emerging economies, especially BRICs (Brazil, Russia, India, China and South Africa) increased six times while the average rate of developed countries rose only two times. The growth was attributed to rapid growth. Vietnam needs to pay attention to this point and make every effort, both diplomatically and commercially, to boost exports. Moreover, the current world is being formed by many layers and many layers with different mechanisms and institutions. Vietnam is actively involved in these shaping institutions. In the past two years, Vietnam established strategic relationships with five countries and more comprehensive partnerships with two countries. Thus, the country now has strategic partnerships with 13 countries and comprehensive partnerships with 11 countries. Vietnam plays a core role in many trade agreements, even plays leading roles in many mechanisms. In the context of fast-developing world and intertwined relationship, ambassadorial agencies and trade counsellors play very important roles. Ambassadors and counsellors must advise State leaders to update the hottest breath and the newest trend of the world to help Vietnam to grow up.

 

In the past 20 years, Vietnam has attracted US$230 billion of FDI capital and disbursed half of it. Foreign-led projects generated 2 million full-time jobs and 2-3 million indirect jobs. In the first 11 months of 2013, foreign investors registered to invest US$21 billion in Vietnam and disbursed US$11 billion. However, FDI projects also cause many problems like environmental pollution and problematic technologies. Therefore, trade offices and promotion agencies should focus resources to draw big projects, environment-friendly projects and projects at the service of global demand from prestigious companies. They also need to change investment promotion methods. Many agencies and enterprises spend a lot on overseas investment promotion activities but the result is still poor while foreign partners sometimes go to their working offices to discuss cooperation but they refuse to meet.

 

Trade offices can work with VCCI to inform enterprises of well-reputed trade fairs and exhibitions in foreign countries, with focus on products that Vietnam has competitive advantages; and support Vietnamese enterprises to know more about latest technologies, particularly supporting industries. Trade counsellor should be more proactive to provide regular reports on specialist subjects in host countries as well as reliable data base for Vietnamese companies to look up. VCCI is ready to coordinate with relevant agencies and overseas trade offices of Vietnam to implement this issue.