17:21 | 28/07/2015 Trade
(VEN) - The Ministry of Industry and Trade has outlined a full array of measures to realize the export and import goals for 2015 and develop exports in a sustainable manner focusing on boosting major exports and making the most of the opportunities presented by increasing international integration.
Reducing textile, garment and leather material imports
The leather and footwear sector has ranked among the leading exporters in terms of revenue in recent years. However, its material imports remain high, resulting in high production costs and low competitiveness.
To improve the situation, the government has implemented the Vietnamese Textile and Garment Industry Development Strategy until 2015. Several investment projects were launched to develop support industry products for the textile and garment sector such as the Dinh Vu fiber project and the Vinatex Hong Linh Fiber Plant project. For this reason, the localization rate of the textile and garment sector has increased notably. Before 2014, the sector had to import 70 percent of materials annually. However, the percentage reduced to less than 50 percent after that.
Deputy Minister of Industry and Trade Tran Tuan Anh said that after negotiations on the Trans Pacific Partnership (TPP) and other free trade agreements (FTAs) are completed, the opportunities for the textile and garment sector will be tremendous thanks to special tariff preferences. However, to enjoy these preferences, businesses must meet strict requirements in terms of origin of materials. This will stimulate domestic and foreign businesses to invest in support industries.
“According to the government’s plan for the near future, the Ministry of Industry and Trade will focus on specific policies to concretize investment programs to develop support industries. In the short term the Ministry of Industry and Trade will continue to work with related parties on construction of support industry zones in several localities focusing on the dyeing and fabric production industries and equipment for the textile, garment, leather and footwear sectors. In addition, the ministry will become more active in developing Vietnamese textile and garment brands,” said Anh.
Making the most of integration preferences
Vietnam is deepening its international economic integration via a series of FTAs.
To make the most of the opportunities and overcome the challenges posed by the FTAs, the Ministry of Industry and Trade has paid attention to highlighting the pros and cons of integration among businesses. It is currently devising a project to strongly promote issues related to international economic integration among the business community in 2015 and future years, plus issuing legal documents to institutionalize FTAs and best facilitate exports and imports.
Anh said, “The Ministry of Industry and Trade is accelerating the pace of restructuring the industry and trade sector to increase competitiveness of businesses and products, while at the same time continuing to monitor the market to implement integration commitments.”
Anh suggested the ministry will streamline trade promotion activities and develop export markets focusing on major markets initially in order to make the most of opportunities from new markets and create favorable conditions for sustainable development in major and potential markets to provide better earnings for Vietnamese exports.
Phuong Lan & Nguyen Huong