Five Lessons for Trade Service, Says Deputy Prime Minister

 

Firstly, after 20 years’ renovation, the biggest change in Vietnam has been seen in social awareness. In the past, the society considered trade as a non-production sector. Now, trade development is considered a factor determining the change of the country. Thanks to a change for the better in the economy, interactive relations between trade and production activities can be seen clearly. Revolutionary changes include the awareness that trade consists of not only goods but also services. Service enterprises will emerge as important partners in trade.

 

Secondly, entities in the trade sector have made significant progress. Foreign-invested and Vietnamese enterprises share the same contribution to the trade sector. The contribution of private enterprises accounts for 70 per cent of the contribution of Vietnamese enterprises, and the figure has tended to increase. The competition and co-operation of enterprises in different economic sectors will benefit consumers and boost trade circulation. Furthermore, the combination between production and trade will benefit both manufacturers and consumers. For example, locally-made products account for 80 per cent of goods sold at Metro or BigC.

 

Thirdly, the local market has seen a rapid change. Never before have I seen such a quick change in the Vietnamese market as this year. Enterprises should pay attention to changes of the local market. International integration offered both opportunities and challenges. The more the Vietnamese economy opens its door, the more it exports. Vietnam has almost caught up with Thailand in rice exports. Other goods, including black pepper, footwear, cashew nuts, and garments have found a foothold in the international market and have been prevented with anti-dumping court cases. This is a good sign as Vietnamese production has gradually found a foothold in the international market and foreign rivals are worried about Vietnam’s stronger production. During the international integration process, enterprises should advance without a fear of foreign rivals’ entry into Vietnam. What I am concerned most about is that Vietnamese enterprises focus on export only, forgetting the local market. Vietnamese enterprises should take local opportunities.

 

Fourthly, Vietnam’s trade promotion activities are yet to be effective. Trademarks are not only a registration but also represent the quality of products and services and enhance quality promotion. Enterprises should be patient and build up their prestige. The success of trademarks comes from product quality.

Fifthly, attention should be given on how to promote exports and manage imports, how to manage the local market and promote State management in trade. I propose that Minister Truong Dinh Tuyen and Deputy Minister Phan The Rue submit proposals to the Government for consideration of what should be changed in mechanisms for the sustainable development of the trade sector.