Ministry proposes solutions to boost industry, trade

Proposals and recommendations

Ngo Quang Trung, Director General of the Agency for Regional Industry and Trade, reported that in the first quarter of 2023, the Index of Industrial Production (IIP) increased in 48 localities but declined in 15 compared with the same period last year, while retail sales and consumer service revenues increased 13.9 percent year-on-year. However, Vietnam's export revenue dropped 11.9 percent from a year earlier to US$79.17 billion, reflecting difficulties of domestic enterprises in restoring production and business and boosting exports.

Minister Nguyen Hong Dien delivers speech at April 18 industry and trade conference

The industry and trade sector targets eight to nine percent growth of the IIP and in the retail sales of goods and services this year, while the total export revenue is expected to increase six percent year-on-year.

Development of industrial clusters and of renewable energy, as well as greater information about export markets and eased investment procedures for power projects were among the proposals made by local leaders to boost industry and trade.

Limitations and causes

Addressing the conference, Minister Nguyen Hong Dien praised the efforts of localities in the first quarter of 2023, which yielded encouraging results and contributed to the overall growth of the industry and trade sector.

However, he pointed out the very low growth rate of indexes compared with plans in some localities, which only increased by less than one percent due to lack of orders, output restrictions, and slow progress of investment projects.

Minister Dien also mentioned objective causes, including soaring global fuel and energy prices, high inflation, tight monetary policy, and slow recovery in some major export markets like the US and EU, which resulted in weak demand for imported goods. He also warned that competition, especially with China and other key export markets, is expected to be more intense after their reopening and loosening of trade restriction measures.

In discussing domestic causes of the low IIP growth, the minister pointed to delays in planning of large investment projects, overlaps and contradictions in legal regulations, and insufficient professionalism of many enterprises hampering official export activities.

Five key measures

Minister Dien listed five key measures designed to help localities and businesses emerge from the ongoing stagnation and achieve the 2023 targets.

First, continued dissemination and aggressive implementation of Party and State directives, as well as improved public communications to explain to the Vietnamese people this difficult context of the world economy, create consensus and encourage determination to accomplish the set goals.

Second, urgently complete industrial and trade projects, strategies and plans of each locality to promptly integrate them in provincial and national plannings.

Third, review and ease difficulties and obstacles for each enterprise and each project, especially the large ones that drive growth, budget revenues and jobs. At the same time, continue to simplify administrative procedures and promote information technology application.

Fourth, accelerate real estate projects and reduce public investment, making room for the development of related sectors and fields like mechanical engineering and trade and services, aggressively implement exports via official channels, especially of fishery and agricultural products, and keep implementing free trade agreements.

Fifth, increase discipline in management of state agencies, and strengthen inspection and supervision of performance.