2007 to Remark Comprehensive Changes in Vietnam's Industrial Sector

 

In the initial days of 2007, the country’s overall industrial sector set a goal of reaching total production value of VND574,990 billion (US$35.9 billion) in 2007, up 17.1 per cent over 2006.

 

According to the Ministry of Industry, the State-run sector will increase 9 per cent, private sector 24.1 per cent and foreign-led sector 18.5 per cent. Industry Minister Hoang Trung Hai pointed out that Vietnamese industry had a lot of opportunities to expand comprehensive economic cooperation, exploit comparative advantage, and make full use of outside resources to promote internal forces generating the power to push the country’s development.

 

To prepare for the industry sector’s 2007 operations, the Government and the Ministry of Industry have introduced many solutions streamlining procedures for enterprises and empowering local authorities on license decisions for investment projects. Minister Hai said “The mechanism is in our hands. We must solve our own difficulties.”

 

To enhance management quality and ensure sustainable growth for the industrial sector in 2007, authorities will increase investigations to  expose corruption to timely way, and contain and resolve the cases with as little impact as possible on the reputation and image of the industrial sector in general and enterprises in particular. In terms of management, the Minister of Industry will propose measures to develop a common management criteria system for the entire industry.

 

Vietnam has great opportunities to export commodities as well as industrial products to the rest of the world in 2007. The Ministry of Industry expects export earnings of US$35.5 billion this year, up 17.1 per cent compared with 2006. Crude oil, garment, textile, leather and footwear remain the key industrial exports. Vietnam expects to export 16.1 million tonnes of crude oil, while the garment and textile industry will generate some US$7 billion. The leather and footwear industry will encounter certain difficulties in export expansion because several countries are imposing antidumping taxes on this fashion commodity. This year, leather and footwear products will bring in some US$4 billion from export. Several industrial products will have export growth in 2007, including electronic products and computer parts expected to be up 35.6 per cent, wooden products 31.3 per cent and plastic products 21.3 per cent.

 

However, according to economic experts, the Vietnamese industry will face serious challenges in 2007. In addition to opportunities generated wider export market access, foreign capital attraction and technology transfer, the Vietnamese industry will be expected to comply with all WTO regulations. First of all, Vietnam will bear pressure from commercial products, services and intellectual property. Under WTO commitments, Vietnam has to reduce 9,465 tax lines, with an average decrease of some 25 per cent from the current rate to some 12.6 per cent in 5-7 years. Furthermore, it will also have to remove non-tariff barriers such as quotas, licences, customs procedures and subsidies.

 

According to Industry Minister Hoang Trung Hai, the Vietnamese industry will, first of all, have to quicken and synchronise market factors and create legal corridors for the execution of international commitments. In 2007, the industry prepared for integration in all three aspects: ideology, legal system and competitiveness of the business sector.