16:27 | 05/12/2015 Trade
(VEN) - Export revenues increased by 8.5 percent in the first 10 months of this year compared with 10 percent set for the year by the National Assembly. The 10 percent growth target will not be reached unless greater efforts are made.
A seminar on sustainable growth of industrial exports was held in Hanoi in early November
Still far from target
According to the Ministry of Industry and Trade, total export revenues reached about US$14.4 billion in October, a 4.2 percent increase from a year ago, and equal to US$134.62 billion in the first 10 months of the year, an 8.5 percent increase. Of this, the domestic sector contributed US$39.5 billion accounting for 29.3 percent of total export earnings a 3.3 percent fall from a year ago, while the foreign-invested (including crude oil) earned US$95.1 billion, accounting for 70.7 percent of total export earnings, a 14.3 percent increase from a year ago.
The Ministry of Industry and Trade’s Planning Department Head Nguyen Tien Vy said that export revenues increased slightly from September to October as a result of increased earnings from industrial processed products such as production materials, briefcases, hats, umbrellas, textiles, garments and footwear.
The processing sector saw exports increase by 17.6 percent contributing importantly to the export growth. Meanwhile, agricultural products-seafood-forest products fell by 9.7 percent and fuel and mineral category slumped 46.5 percent. “Decreased export prices caused agricultural and seafood export revenues to shrink by about US$1.82 billion and the fuel and mineral export revenues fall US$3.65 billion,” said Nguyen Tien Vy.
The foreign direct investment (FDI) sector maintained the high growth momentum contributing greatly to the export growth. Exports from the FDI sector increased 13.4 percent in the first 10 months of the year, reaching almost US$14.5 billion. Telephones and telephone accessories recorded high revenues and high growth.
The US continued to be Vietnam’s largest export market with revenues climbing by 18 percent in 10 months contributing 20.6 percent of total export earnings. It was followed by the European Union growing by 11.9 percent and accounting for 18.8 percent, ASEAN falling by 2.9 percent and accounting for 11.4 percent, Japan dropping by 5.2 percent and accounting for 8.6 percent, and China increasing by 12 percent and accounting for 10.3 percent.
The Ministry of Industry and Trade’s Agency for Foreign Trade Deputy Head Tran Thanh Hai said, “To achieve the 10 percent growth target by the year-end, Vietnam must export almost US$15.2 billion per month in the last two months of the year. This task is challenging.”
Key solutions to achieve the target
To resolve difficulties for exporters, the Ministry of Industry and Trade issued Instruction 16/CT-BCT on October 13, 2015, regarding measures to increase exports and better control imports in the last three months of the year. The Instruction identifies five major tasks, including resolving difficulties for businesses, facilitating production and boosting exports; enhancing export market development, disseminating the advantages of free trade agreements, increasing trade facilitation activities, and tightening import management and use of domestic products in substitution for imports.
Vietnam National Textile and Garment Group (Vinatex) Deputy General Director Hoang Ve Dung said that apart from ensuring already existing orders, the textile and garment sector is trying to build a complete supply chain to actively import materials and meet opportunities from signed FTAs. Specifically, Vinatex is preparing for operation of many garment and spinning factories in the provinces of Bac Lieu, Can Tho, Tuyen Quang and Thai Binh, while getting ready to build a concentrated industrial zone in Nam Dinh Province.
Vietnam Timber and Forest Product Association Office Chief Cao Xuan Thanh said the association has strongly supported businesses which will take part in a Vietnamese High Quality Goods Fair scheduled to take place at the end of November in Moscow, Russia, in order to seek orders and expand the export wood market.