Export Activities in Da Nang City Record Positive Signs

Export Activities in Da Nang City Record Positive Signs

According to statistics from the Department of Trade of Da Nang City, up to the beginning of May 2005, its total estimated export value had reached USUS$ 152.3 million equalling 31.5 per cent of the export plan and showing an increase of 27.5 per cent in comparison with the same period last year. 21.1 per cent of the value belongs to the foreign invested sector. Local State Owned Enterprises have achieved 32.5 per cent of their export plan, meanwhile central State Owned Enterprises have reached 31.2 per cent, an increase of 31 per cent compared with the same period last year. Service exports increased by 27.5 per cent compared to the corresponding period last year. Of the main exported items, garments, aquatic, agriculture, and forest products have tended to increase dramatically. In general, there is optimism among export community this year. However, if we are to evaluate objectively and consider them in financial terms, the export activities of the city have not been corresponding to its capability. There aren’t many enterprises with trademark and therefore the ability to integrate into the world economy. Yet thanks to its economic potential and strengths, Da Nang attracted investors and export commercial services development.

Currently the biggest advantage of the city is its business relations with 80 countries and territories, and cooperation with 33 provinces, cities and areas around the world including Australia, Japan, US, France, and Sweden.  In addition, the is city located in a very advantageous position which is at the cross roads of East-West corridor and North-South traffic way. The city has deep-water ports, an airport, and good infrastructure. In 2005, therefore, the city’s commercial sector plans to exceed USUS$ 500 million worth of export value and maintain a growth rate in major export items such as shoes, garments, wooden products, handicrafts, electric components, cashews, vegetables, and aquatic products. The target of the sector is to reduce exceeded imports but ensure essential products for production and peoples’ living, and improve the import structure according to the direction of increasing proportion of machinery and equipment.

 It would be a severe difficulty for the city to reach the goal of narrowing down the gap between imports and exports and at the same time adjusting the export structure following the direction of lessening agriculture and material products. Lacking initiative in production materials, much of which is still imported, the city’s exports have been negatively affected by input market fluctuation. Faced with such difficulties and challenges, however, the commercial sector of the city recorded significant development and has contributed to export activities by ensuring a source of supply for important goods and controlling prices. Trade promotion has been improved in not only State Administrative agencies but also in trade organizations and enterprises. Once this activity is regularly organized, there will more export opportunities for enterprises in the city. Another issue is that besides product quality, which is a most important factor, export enterprise should pay attention to other requirements including price, on time delivery, and building and maintaining business prestige. In addition, Vietnam’s efforts to integrate into the WTO promises good opportunities for enterprises to express their capabilities. At present, with the eradication of the garment quota exported to EU and  a reduction in Vietnamese import tax on aquatic products, these products’ low competitiveness has been clearly shown. This raises an important issue for Vietnamese enterprises in general and Da Nang’s enterprises in particular whether they have a comprehensive development orientation capable of competing in the world market.  

• Thu Hong