Challenging export targets

In the two remaining months of the year, exports have the opportunity to grow thanks to the economy’s stable growth, controlled inflation, increased credit and businesses’ eased difficulties despite facing the challenges of rising protectionism and tough competition from other exporters - especially those who have devalued their currency against the US dollar.

The National Assembly set a target for exports in 2015 to grow by 10%, and the trade deficit over the export turnover less than 5%.

According to the Ministry of Industry and Trade, exports maintained growth over the past ten months, bringing in US134.62 billion, an 8.5% year-on-year rise, while the import volume was estimated at nearly US$138.7 billion, a 14.3% year-on-year increase. Agricultural and seafood products faced tough competition as crude oil, fuels and minerals were kept at low prices. The category of agro-forestry and seafood saw a 9.7% year-on-year fall in export value, decreasing US$1.82 billion, while the category of fuels and minerals fell by 46.5%, equivalent to US$3.65 billion.

The National Assembly set a target for exports in 2015 to grow by 10%, and the trade deficit over the export turnover less than 5%. Accordingly, the export value was expected to reach US$165 billion. However, over the past 10 months, the export volume fulfilled merely 81.6% of the set plan, thus the average export growth in the two remaining months of the year should be around US$15.2 billion per month. This is a challenging target and significant difficulty in the current situation.

To realise the above-mentioned target, resources should be focused to ease difficulties for businesses, support production, boost exports, speed up nearly-completed projects, follow up fluctuations of exchange and interest rates in the country and the world, evaluate impacts, seek solutions and lift trade barriers.

Meanwhile, related sides should develop the export market, effectively exploit traditional markets and open new potential ones; promote exports among importers and foreign distributors; and update and provide information about importing markets to associations, industries and businesses.

In addition, communication on free trade agreements (FTAs) should be enhanced to help businesses to take advantage of the pacts. Tariff preferences from the FTAs will become meaningless if businesses do not fully grasp the regulations and conditions. Many non-tariff barriers will arise if businesses do not study and actively respond to FTA regulations.

Moreover, appropriate internal legal documents should be developed and the system to issue certificates of origin via the Internet should be operated effectively and connected to the National Single Window (NSW) and the ASEAN Single Window (ASW).

The country should also facilitate trade, improve the business climate, enhance national competitiveness, simplify administrative procedures, reduce charges and fees on exports, and boost the effectiveness of specialised examination over exports.

Meanwhile, drastic measures should be taken synchronously together with efforts from the business community and millions of workers to fulfill the set target for export this year.

(Source: nhandan.org.vn)