Vietnam sets 11 % export growth rate this year

Vietnam set itself an 11 % export growth rate to earn $ 16.6 bn this year despite the current global economic downturn. Deputy Trade Minister Mai Van Dau said that the target has been defined on the basis of the country's actual export situation as well as world market forecasts for 2002.
To the total amount, earnings from the export of aquatic products will contribute $ 2.1 bn; textiles and garment, $ 2.4 bn; footwear, $ 1.9 bn; crude oil, $ 2.6 bn; electronic accessories, $ 750 mm; and rice, $ 640 mm, the Deputy Minister elaborated. He told that Vietnam plans to increase its exports to the US by 50 % to post $ 1.55 bn in 2002 from $ 1.05 bn last year.

Local exports to the US market are now subject to tariff rates around 4 % as against the average level of 40 % prior to enforcement of the bilateral trade agreement between the two countries last December. China is another market eyed by local exporters, Deputy Minister Dau noted. Vietnam is striving to raise its export earnings from the neighbouring country by 20 % to $ 1.9 bn.
The Deputy Minister said his ministry has proposed the Government a number of solutions to boost the country's export in 2002. Under those proposals, enterprises will be encouraged to sign direct contracts to buy farm produce with farmers who are likely to enjoy input support and lower petroleum and gasoline prices to reduce production costs.

On the country's export activities last year, Deputy Minister Dau held that 2001 was a year full of challenges and difficulties for local exporters. Sharp drops in prices of the country's major export items, namely crude oil, rice, coffee, cashew nut and pepper, in the world market reduced Vietnam's 2001 export revenues by $ 1.5 bn.
In addition, local producers failed to keep up with steady market demand changes to timely restructure their production. Consequently, a number of Vietnamese products could not compete regionally and internationally, Dau noted. He pointed out that the Government last year promptly instructed relevant ministries and localities to carry out a series of packaged solutions to speed up exports. As a result, Vietnamese farm produce were well marketed.
Staples that recorded increasing export volume growth rates in 2001 included rubber, 14 %; coffee, 25 %; cashew nut, 20 %; and pepper, 51 %. Last year, Vietnam attained an export growth rate of 4.5 % and an export revenue of $ 15.1 bn.