Vietnam to miss 2016 export target

According to the General Department of Customs, total export value in the first ten months reached US$143.9 billion, a year-on-year increase of 7%. Of this sum, the export value from foreign invested firms stood at US$100.88 billion, a year-on-year surge of 10%.

During the first ten months of 2016, the agro, forestry and fishery sector had a breakthrough growth in export value at 7.9% to US$18.3 billion, whilein first ten months of 2015, the sector saw a year-on-year reduction of 9.7%, said the Ministry of Industry and Trade (MoIT).

A ship being loaded with containers at Haiphong Port

However, the 10% target will not be met because unstable politics in key export markets have reduced demand and prices, the minister told Vietnam News Agency.

The decline of China’s economy has also affected global trade, including Vietnam’s, he said.

The minister listed the major factors for the missed target: First of all, other countries with similar export structures as Vietnam have promoted solutions to increase exports, resulting in tougher competition for Vietnamese goods. Secondly, many importing countries have applied technical barriers and increased demands regarding the quality of imports, especially farming and fishery products, while disadvantages in weather have also affected the supply and quality of these products.

Thirdly, Vietnam does not have strong supply industries for key export of industrial products, such as mobile phones, textiles, garments, leather and footwear, and must therefore depend on import of material for production. This makes export products susceptible to price fluctuations of raw materials on theworld market. Fifthly, small and medium-sized enterprises have a hard time getting credit though interest rates have been reduced.

Minister Anh pledged that his ministry will focus on implementing effective trade promotion programmes for export products facing difficulties in price andmarket. It will build trademarks for some key exports such as textiles,seafood, fruit and rice to enhance its competitiveness.

He also promised to review and simplify import and export procedures and control counterfeit and poor-quality imports for producing export goods.