Vietnam's Export: An Economic Highlight in 2006

The year 2006 witnessed a series of records made by key exports in spite of a lot of market changes and trade barriers. Garments and textiles remain the largest export (exclusive of crude oil) with total export revenues of US$5.9 billion, representing an increase of 22 per cent a year and accounting for 14.9 per cent of the country’s total export earnings.

Footwear and aquatic products also grow strongly although they were imposed antidumping taxes on several key export markets. Particularly, the aquatic product must undergo safety and quality checks conducted by importing nations. With intensive investment, product diversity and expanding markets, both footwear and aquatic products brought in more than US$3 billion by the first 11 months of 2006. By the end of the year, the footwear export is hoped to generate US$3.5 billion and aquatic products US$3.4 billion.

Compared with last year, the “export billionaire club” admits two new members of rubber and coffee. The export revenues of rubber jumped 64 per cent in 2006 to US$1.3 billion, principally due to the price rise by some 40 per cent in the year. Thus, as of 2006, the “export billionaire club” has nine members, namely aquatic products, rubber, rice, crude oil, garment-textiles, leather footwear, electronics, computer parts, woodwork and coffee.

The skyrocketing rise of several small export items like iron products, transformers and cassava has exposed their potentiality as they have sound development policies, huge production sources, non-limit export market and no trade barriers.

 

The highest forex-earning localities include Hai Phong – the first year to exceed export revenues of US$1 billion – Thanh Hoa, Ha Tay, Vinh Phuc, Ba Ria – Vung Tau, Hoa Binh, Kien Giang and Quang Nam.

The year 2006 is also the first year to apply renovations to the National Trade Promotion Programme in accordance with the Prime Minister’s Resolution. The organisation of “Vietnam Days Overseas” by the Government has helped advertise the land, the people, enterprises and products of Vietnam. 

Hence, the export to focal, traditional and neighbouring markets grows strongly. Typically, Vietnam-China bilateral trade revenues reach US$10 billion while Vietnam’s export to Cambodia brings in US$1 billion.

This year, the import takes away US$44.8 billion, up 22 per cent on last year. However, with the higher export growths in recent years, the trade gap in 2006 is significantly reduced to 12.8 per cent, the lowest level to date.

With this export growth impetus, the Ministry of Trade has introduced many solutions to further boost the country’s export in 2007 – the first year of joining the World Trade Organisation (WTO). Vietnam will focus on reducing taxes, tightening control over certificates of origin of exported garments and textiles, applying flexible rice export management and grasping high price moments.

The ministry will also instruct enterprises to study and seek solutions to deal with technical barriers and anti-dumping cases.

To boost export and narrow the trade gap, the ministry will apply suitable import management solutions to commodities whose taxes are to fall sharply. At the same time, it will focus on building and applying technical barriers to imported goods to protect the consumers and reduce the trade gap. (VNA)