Opportunities vs Challenges for Trade and Industry of Tra Vinh Province

 

In 2009, Tra Vinh like the rest of Vietnam is affected by the world economic crisis. Under the direction of the Government, Ministry of Industry and Trade, Tra Vinh People’s Committee, and with the efforts the provincial sector and especially the implementation of Entrepreneur Year, the industrial production could retain a high growth rate. The industrial value was VND3,205.11 billion or 101.75 percent of the plan and 6.65 percent more than 2008. Industrial GDP was VND1,152.365 billion or 6.67 percent more than 2008 and makes up 15.72 percent of GDP of the province. The total retailed sales was VND7,355.47 billion, or 94.30 percent of the plan and 13.16 percent more than 2008. The export value was US$120 million or 92.31 percent of the plan and 8.49 percent more than 2008.

 

In 2009, 12 investment projects were licensed with registered capital of VND168.663 billion and US$1,450 million. 1,589 new enterprises have been established increasing the total number to 8,520 industrial and handicraft enterprises, creating 43,036 jobs, or 3,154 jobs more than 2008. In addition, the sector has also supported over 60 enterprises to participate in six exhibition fairs displaying 40 products mainly from fine arts and food industries. Also in 2009, the province built eight new market places and upgraded four, which brings the total to 112 market places in the province, thus promoting the consumption of agricultural produce and distribution of commodities in the province.

 

The province has developed the power grid with 3.9 km of medium tension and 16.5 km of low tension power lines, bringing the total to 2,078 km of medium tension and 2,496 km of low tension power lines. Also, six transformater stations were added to the 2,6196 transformater stations already built with total capacity of 124,176 KVA.

 

As industrial production is scattered all over the province with Long Duc as the only industrial zone, environment pollution becomes a difficult issue. Furthermore, industrial centres have not been established, it is difficult to attract investments for small and medium- sized eneterprises. Consumption markets have not been expanded, enterprises do not have enough outlets. Power supply has not met the demand of industrial production and development as well as of agriculture and fisheries. Market networks especially rural market places fail to meet the demand of commodities exchanges, and are often overloaded and block traffic.

 

To solve those issues, there must be coherent policy and solutions as well as preferent treatment and investment promotion activities to attract local and foreign investments. Also this year, the government has approved the national strategy for development of industrial zones with three new industrial zones (IZs) in Tra Vinh: Cau Quan, Co Chien and Dinh An (Long Duc expansion). For its part, the central government has also developed new projects in Tra Vinh namely highways and bridges, Duyen Hai power centre, 220KV power line and transformer station, Quan Chanh Bo canal, seaport, commercial centres and supermarkets creating favourable conditions for the industry and trade and socio-economic development as a whole.

 

With guidance from the provincial leadership, the industry and trade sector has launched Business Year 2009 to focus support for businesses as they are a decisive factor for economic growth. In conjunction with other related authorities, we have organized trade fairs and seminars, at home and abroad, to promote trade, expand markets and develop businesses. For its part, the Industrial Consulting and Promotion Centre has organized training courses to upgrade professional skills and has assisted businesses in getting access to credits, establishing enterprises, registering trademarks and introducing new products. Meanwhile, e-commerce has also been started with the participation of 38 enterprises and 170 products have been introduced to domestic and world markets. We have also coordinated with Tra Vinh branch of the State Bank to implement successfully stimulus packages of the government (Decisions of 131/QD-TTg of January 23, 2009, 443/QD-TTg of April 4, 2009 and 497/QD-TTg of April 17, 2009). By November 30, 2009, the low interest rate loans amount to VND3,297 billion with 106,322 borrowers, and VND1,000 billion has been disbursed for business activities. This together with tax exempt, reduction and delay have helped businesses and producers maintain production and development.

 

In 2009, the export value of the province reached the record high of US$120 million, or 92.31 percent of the plan and 8.49 percent more than 2008. New export items are zinc printing plates of high economic value to Canada, footwear to the US and rice to Africa. Presently, export products of the province can enter up-markets such as the US, Japan and Europe.

 

In the past three years, Tra Vinh exporters have encountered more favourable conditions to develop cooperation with partners in the region and the world in technology transfer, market expansion, improvement of management skill, training of workforce, and attraction of foreign investments. However, there are also big challenges such as increased competition in export markets as well as domestic market between local and foreign commodities, export products of low quality and style, and poor equipment due to limited financial capacity.

 

To take advantages of opportunities and overcome challenges, businesses must make the best use of privileges reserved for WTO members and bilateral and multilateral agreements to promote exports, industry and trade, the application of new technology, the registration of quality standards and trademarks, the implementation of international quality system as well as increase trade promotion, upgrade management skill and train a workforce. Businesses must also join associations to protect their interests.