Specific Measures to Realize Specific Export Targets in 2006

 

The ministry has eyed garments and textiles export turnover of US$5,436 million in 2006, up 12.4 per cent over 2005. It will prioritise high-value orders from quota-bound markets and categories, focus on tapping non-quota markets like Japan, South Korea, Taiwan and the European Union (EU), and seek such new markets as Australia and New Zealand.

 

The ministry also plans to propose that the Vietnamese government allow foreign investors from countries having strong garment and textile material industries or relevant investment projects in Vietnam to organise the importation of materials and accessories, build material markets, and distribute materials and accessories for the local garment and footwear industries.

 

To reap footwear export turnover of US$3,547 million this year, Vietnam will focus on fully tapping the American market, especially the United States, Mexico, Canada and Brazil, seeking new outlets like the Middle East and Africa, and boosting exports to traditional markets with low revenues, including Japan, South Korea and Eastern Europe. Local enterprises should pay more attention to improving their product’s styles.

The ministry has targeted export turnover of US$1,880 for electronics and computer components in 2006, up 32 per cent against 2005. To this end, it will center on exploiting regional markets, accelerating exports to countries with relevant investment projects in Vietnam, such as Japan and South Korea; seeking markets with high demand and requirement like the United States and the EU, and penetrating into markets with moderate quality requirement, including Africa, the Middle East and Southern Asia.

 

Specific solutions include creating more favourable conditions for foreign investors to become involved in the fields of electronics and computer components, revising import tariffs on relevant materials, encouraging multinational and transnational companies to strengthen trade of local products within their networks, and offering preferential treatment to foreign investors who pour money into developing auxiliary industries.
WoodworkTo earn US$2,164 million from shipping woodwork abroad this year, Vietnamese companies should continue tapping the US and EU markets, and seeking and expanding potential ones like Japan, South Korea, Taiwan, Singapore, Australia, New Zealand and non-EU members. They should also beef up production and export of interior wooden items, not just outdoor woodwork. It is necessary to establish large centers for importing and distributing timber and logs.

 

Vietnamese plastic producers, who have eyed a total export turnover of US$500 million in 2006, should focus on exploiting Southeast Asian markets to take advantage of low transport cost, and penetrating into the United States, the EU, Japan, South Korea and Taiwan which have great demand for products with high quality and value, the ministry said. It will call for the government to issue preferential polices relating tax, equipment and technology to ensure sufficient material supplies.

Now, the Vietnamese producers should focus on making and exporting plastic packages and high-end products, since there is high world demand for them and such local items have already known by many importers, the ministry said. In the long term, they need to intensify investment in the application of advanced technologies to turn out products used in automobiles, motorbikes, ships, planes, and drainage and oil industries. The local plastic industry plans to export four million tonnes of products valued at US$1 billion in 2010, according to the Vietnam Plastics Association.

 

Electric wires and cables
To earn US$664 million dollars from shipping abroad electric wires and cables in 2006, Vietnamese companies need to strengthen exports to South Korea, Japan, Taiwan and Southeast Asian countries, seek new markets in South Asia, the Middle East and Africa, and approach the United States, the EU and East Europe. The ministry said Vietnam will adjust import taxes on materials for production of electric wires and cables, and encourage wholly local-invested enterprises to expand their production.

Bicycles and their spare parts
The ministry, which has initially targeted export turnover of US$257 million for bicycles and their spare partsthis year, will organise promotion campaigns in Africa and Southwest Asia to seek new bicycle markets, and follow situations in traditional markets to prevent self-defense measures of importers. Argentina has decided to carry out an anti-dumping investigation into bicycle and motorbike spokes originating in Vietnam. In mid-2005, the EU imposed anti-dumping duties of 15.8-34.5 per cent on imports of Vietnamese bicycles.

 

SeafoodAccording to the Trade Ministry, categories of goods which need improvement in their export value are mainly agriculture, forestry and fishery products, including seafood, rice, coffee, rubber, pepper, cashew nuts and tea. Vietnam’s seafood export turnover is expected to rise 13.1 per cent to US$3,098 million in 2006. Besides markets with high demand for high-quality products like the EU, the United States, Japan, South Korea, Taiwan, Hong Kong and Australia, local enterprises should beef up seafood export to regions in danger of bird flu outbreaks, including Southeast Asia, the Middle East, Earn Europe and South Europe.

The enterprises need to improve packages and turn out more processed products like ready-to-serve seafood and canned seafood. Fishermen and farmers are advised to catch and raise species with high economic value, including tuna and lobsters.

Regarding rice for export, the government has recently introduced a cap of five million tonnes in 2006 to ensure food security. The ministry has instructed local exporters to keep on tapping Asian, African and Cuban markets, and further penetrate into Japan, South Korea and Australia, which have high demand for Vietnamese high-grade or speciality rice. Domestic firms should construct and promote their products’ trademarks like “Tam Xoan” grown in northern Nam Dinh province, it said.

 

Fruit and vegetables
To boost export of fruits and vegetables, Vietnamese companies should focus on regional markets, especially China’s Yunnan and Guangxi provinces, while seeking new ones in Europe, America and Australia. They should also improve their warehouses and post-harvest services, the ministry said.

 

Coffee
Vietnamese exporters need to promote their products in Southeast Asia and China, in addition to such traditional markets of the EU, North Europe and the United States. Besides, they need to pay due attention to post-harvest technologies, and activities on international coffee trading floors.

Rubber

To make rubber export revenue of US$838 million this year, Vietnam will continue exploiting such traditional markets as China, South Korea and the United States, and enhance shipment of processed rubber to Germany, Belgium, the Netherlands, England and Russia. It will consider the possibility of growing rubber trees in neighboring countries like Laos.

 

This year, Vietnam is expected to lower import taxes on raw cashews to encourage local firms to import the material from Africa for processing and export, expand cashew cultivation areas, and intensify investment in nut processing. The ministry said local enterprises should probe into the possibility of growing cashew trees in Laos and Cambodia. Vietnamese exporters should boost export of processed nuts to Japan, South Korea, the United States, the EU and the Middle East, while penetrating into Russia and Eastern European countries.

 

In addition to traditional export items, in 2006 Vietnam will pay greater attention to other goods as bags, umbrellas, cassava starch, rubber products, steel items, ships, electric engines, cartons, chemicals, cosmetics, detergents, and automobile and motorbike tyres.

The ministry is working out a scheme on export development from 2006 to 2010, aiming to post annual export growth of 17.5 per cent in the five-year period. Under the draft scheme, Vietnam will make export revenue of US$38.4 billion in 2006, US$45.3 billion in 2007, US$53,411 billion in 2008, US$62 billion in 2009 and US$72.55 billion in 2010.

 

EPORT ITEM		TARGETS FOR 2006
		Volume        (thousand tons)	Turnover (million US$)			Growth rate           (%)
TOTAL TURNOVER			38,444			118.5
Domestic enterprises			15,993			115.6
Foreign-invested enterprises			22,451			120.5
AGRICULTURE, FORESTRY AND FISHERY
Total turnover			7340			107.1
Proportion			19.1
1	Seafood		3,098			113.1
2	Rice	4,500	1,211			86.1
3	Coffee	920	770			104.8
4	Fruits and vegetables		291			123.9
5	Rubber	600	838			104.2
6	Pepper	120	178			118.4
7	Cashew nuts	115	620			123.5
8	Tea	95	116			120.0
9	Peanuts	80	44			132.4
10	Cassava		174			-
FUEL AND MINERAL
Total turnover			8,187			98.0
Proportion			20.9
11	Crude oil	19,500	7,388			100.2
12	Coal	16,000	447			66.9
13	Minerals		186
INDUSTRIAL PRODUCTS
Total turnover			17,649			122.0
Proportion			45.9
14	Garments and textiles		5,436			112.4
15	Footwear		3,547			116.7
16	Electronic goods and computer components		1,880			131.8
17	Handicrafts		662			116.3
18	Woodwork		2,164			138.4
19	Plasticware		500			142.9
20	Bicycles and spare parts		257			158.6
21	Electric wires and cables		664			126.9
22	Products made from steel		500			125.0
23	Electric transformers and engines		350			125.0
24	Products from paper (cartons…)		150			150
25	Bags, suitcases, hats, umbrellas				520	111.8
26	Chemicals, cosmestics and detergents		300			300
27	Automobile and motorbike tyres				310	121.6
28	Mechanical hand tools				100	142.9
29	Construction materials				60	133.3
30	Shipbuilding				250	166.7
OTHER GOODS					5,330	123.5
Proportion					14.0

 

Source: Ministry of Trade

Dong Phong