2004 Export Hits Eight Year Highest Growth
Vietnam’s export turnover in 2004 was 15.8 per cent higher than the yearly target, reaching US$26 billion, up by 28.9 per cent against that of 2003. This is the highest absolute value increase so far, US$5.8 billion higher than that of 2003. Despite many difficulties, Vietnam’s exports hit the highest growth rate in eight years, from 1996.
Notably, this was the first time Vietnam’s exports did not depend completely on crude oil. In 2004, export turnover of non-oil products saw an increase of 24.3 per cent over that of 2003. The country’s production of exported goods progressed with abundant products, many of which, such as woodwork, electronics and PC accessories, bicycles and accessories, and plastic products in particular, are capable of competing in the international market. The structure of export items has changed for the better: apart from four items, whose turnover always reaches over US$1 billion, two more items, including electronics with an increase of 60.2 per cent and woodwork with an increase of 85.9 per cent, had their export turnover exceed US$1 billion.
Exports of foreign-invested enterprises saw a huge rise with a total value of US$14.3 billion, or an increase of 40.3 per cent. Non-oil export turnover alone saw an increase of 35.6 per cent. Domestic enterprises earned an export value of US$11.7 billion, up by 17.2 per cent over that of 2003.
Vietnam’s export prospect is quite optimistic with prices of major export items, including rice, coffee, rubber and cashew nuts remain high or having increased. Exports of those items which saw a high increase in 2004 like woodwork and electronics will continue to rise. Successful negotiations with the EU and Canada on their removal of textile and garment quotas in 2005 and the US’s reduction of margins of tax on Vietnam’s shrimps are good signs as well.
However, if Vietnam enterprises do not improve their competitiveness and their products’ quality, especially farm-produce and seafood, it will be difficult for them to take this opportunity to increase their export value. In fact in 2004, these goods’ export turnover saw a rise of 16.9 per cent despite prices of farm-produce in the world market increasing greatly. Apart from some farm-produce, which saw a high rise in their export value, some products saw a low increase or even a fall. These included coffee, fruit and vegetables, seafood and peanuts, which failed to meet tough requirements on environmental hygiene needed to pass trade barriers.
Exports of foreign-invested companies saw a higher increase than that of domestic enterprises. Officials from the Ministry of Trade urged Vietnamese enterprises to become more dynamic in export activities to take opportunities offered by the market.
Another important issue is that despite a higher increase in export turnover than that of import turnover, trade deficit reached US$5.5 billion, up by 9.3 per cent over that of 2003. How will Vietnam do to reduce its trade deficit by below US$5 billion in 2005 and to have a healthy import-export balance? This will be a problem needing solutions from relevant agencies and enterprises in 2005.
Vietnamese
