VINACHEM

(VEN) - In 2010 despite big challenges that came from unfavorable changes in the world economy such as the debt crisis in Europe and increasing trade protection, Vietnam achieved encouraging import, export results thanks to great efforts of entire society as well as effective guidance and management of the Government.

Impressive export results

The Ministry of Industry and Trade said that in 2010, the export value was estimated to total about US$71.6 billion, up 25.5 percent compared with 2009 and exceeding the National Assembly-set target by 18 percent. The export value of 2010 increased by US$14.5 billion compared with 2009. Specifically, the export value of companies with foreign investment capital was US$38.8 billion, up 27.8 percent compared with 2009 and accounting for 54.2 percent of the country's total export value. That of companies with 100 percent domestic investment capital reached US$32.8 billion, up 22.7 percent compared with 2009.

The above encouraging export results of 2010 were attributed to the improved competitiveness of many kinds of export products. The quality of export growth was also improved.

Many kinds of key export products brought in high export revenue, for example textiles and garments (US$11.17 billion, up 23.2 percent compared with 2009 and accounting for 15.5 percent of the country's total export value); leather footwear and seafood (US$5 billion each, exceeding the yearly targets by 14 percent and nine percent respectively); rice (more than US$3 billion, up 10 percent compared with 2009); and rubber (US$2.38 billion, up 80 percent)

Apart from traditional kinds of export products, in 2010,Vietnamexported some other kinds of products such as machinery and equipment, spare parts, transport means, chemicals and chemical products, rubber products and glassware, which brought higher export revenue compared with 2009. That was compliant with the policy to diversify export products and reflectedVietnam's improved export capability.

The year 2010 saw positive changes in the structure of export products: increased export of industrial, manufactured products and high-tech products, and reduced export of raw materials. Processed products accounted for 68.2 percent of the export structure against 63.4 percent in 2009; fuels and minerals accounted for 11.1 percent against 15.2 percent in 2009.

Imports under good control

The total import value of 2010 was estimated at US$84 billion, up 20.1 percent or US$14 billion compared with 2009. The import value of companies with 100 percent domestic capital reached an estimated US$47.5 billion, accounting for 56.6 percent of the country's total import value, up 8.3 percent (US$3.6 billion) compared with 2009. That of companies with foreign investment capital was estimated at US$36.5 billion, accounting for 43.4 percent of the country's total import value and up 37.8 percent (US$9.85 billion) compared with 2009.

The trade deficit of 2010 was estimated at about US$12.3 billion, which equaled 17.3 percent of the country's total export value (the Government-set trade deficit target was not more than 20 percent).

Notably, due to increased exports and an import slowdown since April 2010, the ratio of trade deficit to export value decreased gradually from 23.4 percent in the first four months to 21.2 percent in the first five months, 19.38 percent in the first six month, 18.8 percent in the first seven months, 16.6 percent in the first eight months, and 16.26 percent in the first 10 months. That ratio for the whole year was 16.9 percent.

In 2010 the import of restricted goods (consumer goods, autos with nine or less than nine seats, motorbikes) increased 14.2 percent compared with 2009 - a lower growth rate compared with the 20.1 percent growth of the country's total export value. That was the result of active import control measures.

Looking towards targets for 2011

In the opinion of experts, there are possibilities forVietnamto increase imports, exports in 2011. However, it is necessary to take appropriate measures in order to fulfill the export plan and reduce the trade deficit.

It is predicted that in 2011 it will be difficult for many countries in the world to achieve the desired economic recovery results, trade protection will increase, domestic production costs will grow and the implementation of tax reduction commitments with the World Trade Organization (WTO) and the signed FTAs (Free Trade Agreements). These will be difficulties for production and import, export activities of Vietnamese companies.

To realize the 10 percent export growth target set for 2011 and curb the trade deficit at not more than 18 percent, the Ministry of Industry and Trade has proposed the promotion of bilateral and multilateral negotiations, especially the negotiations on tariff agreements betweenVietnamand other countries, in order to increase exports.

In addition, it is necessary to develop export and domestic trade promotion programs, including the program to boost trade in mountainous areas.

More attention must be paid to making forecasts about production, market and trade conditions, which will serve as the basis for production and export guidance./.