Ensuring the goal of sustainable export growth

Thursday, 2018-05-10 17:41:47
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Processing Tra fish for export in Vinh Hoan JSC, Dong Thap province (Photo: VNA)
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NDO - 2017 was a particularly successful year for exports when the revenue reached US$214 billion, up 21.2% compared to 2016, and exceeding the target set by the National Assembly and the Government.

Also in 2017, some commodities earned more than US$1 billion from exports, bringing the numbers of commodities with export revenues exceeding US$1 billion to 29, those over US$2 billion to 20, and those over US$6 billion to 6. The promotion of export markets has seen positive results. Vietnamese goods have continued to exploit traditional markets while expandingto a number of new markets, contributing significantly to the GDP growth, improving the balance of payments and macroeconomic stability, boosting production, and creating jobs and improving incomes for millions of workers.

However, exports have not really developed sustainably since shifting from crude oil to electronics (accounting for 33% of the total export revenue) and mainly rely on FDI enterprises (accounting for more than 70% of the total export revenue) in addition to a dependence on the global and regional supply chains.

Moreover, the level of market diversification of some agricultural and aquatic products is not high. Some commodities depend on a single market, while production is fragmented and spontaneous and faces many difficulties in controlling the supply for exports as well as ensuringproduct quality.

Food safety has been improved but has not yet stabilised, even some exported products of seafood, pepper, and rice have been returned due to their failure to meet food safety standards. In addition, the cost of the economy is high,(interest rates, transportation, port fees, etc.) furtherreducing the competitiveness of export commodities.

In order to ensure the export growth target of 2018 is met, it is important to create a solid foundation for exports in the coming years, especially in the context of theincreasing protectionism in many countries around the world, and it is also necessary to develop and create a source of quality goods and raising added value. The Government, ministries, sectors, and localities continue to work out measures to remove difficulties and barriers, promote production and business development, especially the development of supporting industries and reduce input costs for exports.

The Ministry of Finance should study solutions to significantly reduce the time to review the application for VAT refunds, help reduce costs for businesses; and study to amend the tax law. The Ministry of Industry and Trade should actively cooperate with the EU to officially sign the Vietnam-EU Free Trade Agreement in 2018; and coordinate ministries and branches in finalising dossiers and submitting them to the National Assembly for ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP); and negotiating to eliminate import tariffs and non-tariff barriers on Vietnamese goods in the context of the negotiation of the Regional Comprehensive Economic Partnership (RCEP).

At the same time, more should be done to promote the expansion of new export markets, strengthen the early warning mechanism for enterprises to actively prevent trade remedy cases; enhance the efficiency of the operation of the Vietnamese trade system in foreign countries to provide timely information for domestic enterprises, as well as guide them in how to respond to cases initiated in foreign countries.