Vietnam Export Strategy: State Co-operates with Private Sector

Vietnam Export Strategy: State Co-operates with Private Sector

It is necessary for Vietnam to develop an effective export strategy. An effective strategy needs the co-operation and support of both the State-owned and private sectors.

At the moment, 60 per cent of export turnover in Vietnam comes from four groups of goods; crude oil, garments, footwear and seafood, which have low stability and value. These groups of goods are often vulnerable to external factors, such as quotas and anti-dumping court cases. This information was provided by Brian Barclay, expert at the International Trade Centre (ITC) of the World Trade Organisation (WTO) at a seminar on using national export strategy development instruments in Hanoi on November 29.

These group of goods often rely on subcontracts with low added value and depend on major markets, such as the US and EU. Non-tariff barriers have also caused trouble like the anti-dumping shrimp court case in the US which damaged Vietnam’s shrimp farming industry. Therefore, it is necessary to develop an effective export strategy, taking risks into account.

According to Brian Barclay, the development of an effective national export strategy, in which co-operation and support between the State-owned and private sectors are needed, is an urgent demand for Vietnam. Up to now, many national strategies have not paid adequate attention to the issue while co-operation between the two sectors is very important to a successful strategy. (ITC) is developing a software product to provide guidelines on designing and implementation of the national export strategy as well as individual industries’ strategies. The software will help Vietnamese managers to develop plans of action based on the evaluation of existing resources.

Vietnam stands 77^th among 104 countries in growth competitiveness in the world rankings for 2004. Its trade competitiveness comes 79^th among 103 countries. Meanwhile, other economies in the region have higher trade competitiveness. Indonesia, for example, ranks 69^th in growth competitiveness but comes 44^th in trade competitiveness.

Vietnam has already developed a national export strategy. The Ministry of Trade and business associations have developed their own export strategies. However, many trade experts say that these strategies have not been linked closely enough to each other and have not benefited enterprises.

• T.V