Last year, Vietnam's economy confronted numerous challenges. Slow and unstable global economic recovery and little-improved import demand from major economies direct impacted Vietnam's ability to maintain trade growth and production development in general, and An Giang province in particular. But, fortunately, with the close direction of the Provincial Party Committee and the Provincial People's Committee plus the determination and effort of the industry and trade sector and the business community, An Giang province achieved positive results in social and economic development.
Stimulating Development Potential
In 2013, although the trade and industry sector was in grave difficulty, the value of industrial production of An Giang province still grew 9.84 percent over 2012 and exceeded the 2013 plan by 3 percent. However, export performance always faced a lot of difficulties, particularly shrinking market demand, prolonged payment term, trade barriers in some key markets, narrowing domestic supply sources, and growing production costs. Thus, export revenues of key products rice and seafood plunged. Luckily, the increase in other exports offset the decline in the two staples and brought in impressive export results in 2013. The province estimated to earn US$960 million in the year, up 12 percent year on year and 6.6 percent from the full-year plan. In addition, total retail sales of goods and services increased sharply. The domestic market expanded rapidly in scale and products of local businesses gradually penetrated distribution and retail systems nationwide. Total retail sales of goods and services in 2013 were estimated at VND69,588.7 billion, up 14.26 percent year on year and equal 97.6 percent of the yearly plan. Inflation rate in 2013 was 2.72 percent, more than three times lower than the previous year.
Although local companies lowered production costs to reduce inventories and restructured manufactured products to overcome difficulties, demand remained weak as consumers cut spending. Reduced prices of agricultural and seafood products led to lower incomes for farmers. Before this situation, the industry and trade sector of An Giang province adopted solutions and measures to support production and business activities, resolved production outputs, oriented domestic consumers, and contained inflation in the spirit of the Resolution 01/NQ-CP and Resolution 02/NQ-CP of the Government. Specifically, the Department of Industry and Trade actively organised working meetings with rice exporters both in the province and outside the province to capture their proposals and discuss support for storage and processing systems. The department also advised the Provincial People's Committee to propose to the Prime Minister some solutions to overcome difficulties in rice production and increase rice consumption in 2013. It also suggested the State Bank of Vietnam - An Giang Branch direct commercial banks to effectively carry out solutions to support enterprises, review existing loans, reconsider lowering lending interest rates, reschedule repayment periods, and freeze existing loans to fund businesses for continued production and business activities to overcome difficulties. It also encouraged enterprises to enhance product value, diversify products, enhance competitiveness, and ensure quality and hygiene standards to meet higher market requirements, overcome technical barriers, and stand firm in foreign markets.
At the same time, the department effectively carried out trade promotion activities in domestic and foreign markets and brought Vietnamese goods to rural areas. It also strengthened and improved the effectiveness of market information and forecasts, and raised awareness of manufacturers and exporters of trade barriers in importing countries, thus helping them increase product quality and avoid export risks.
Seeking new markets and investment sources
Mai Thi Anh Tuyet, Director of An Giang Department of Trade and Industry, said, to have better activities in 2014, the trade and industry sector of An Giang province has stepped up trade promotion in both domestic and international markets. Especially in 2013, the department coordinated with the Hanoi Department of Industry and Trade to organise a signing ceremony of socioeconomic development cooperation agreement between Hanoi City and An Giang province (April 2, 2013). After this event, many An Giang-made products became known to consumers in the capital city and surrounding localities. In addition, trade promotion activities effectively impressed consumers at the central region and Ho Chi Minh City.
The Department of Industry and Trade also partnered with the South Office of the Vietnam Trade Promotion Agency (Vietrade) under the Ministry of Industry and Trade in Ho Chi Minh City to introduce seafood and rice exporters to work with foreign chambers of commerce in the city like Chinese Consulate General, South African Consulate General, Kuwaiti Consulate General, South Korea Consulate General, Ukrainian Consulate General, Dutch Consulate General, Australian Consulate General and Japanese Consulate General. Hence, local firms created better impressions and built up the trust in product quality in these demanding markets.
Han Luong
Vietnamese
