MoIT makes moves to reduce trade deficit
Due to the global economic crisis, the government has lowered the sector’s growth target to 3 percent to US$64.68 billion. In the first half of this year, export earnings only fetched US$27.6 billion or US$4.6 billion a month on average, and to meet its yearly target the sector must have to earn US$6.2 billion from exports a month.
Le Quoc An, President of the Vietnam Textiles and Apparels Association (VITAS) quotes many VITAS affiliates, saying that their exports will increase if customs procedures become more transparent. They propose that the MoIT and the Ministry of Finance examine existing regulations to help businesses shorten clearance time.
According to MoIT Deputy Minister Bui Xuan Khu, his ministry will work closely with the Ministry of Finance to simplify administrative procedures, especially customs procedures in order to boost exports. The two ministries will continue to adjust import-export taxes to support domestic production, while drafting an export credit insurance project for submission to the government.
Hoang Viet Cuong, Deputy Director of the General Department of Customs, says that the department is developing an e-customs model in some provinces and cities besides Hai Phong and HCM City to cut clearance time.
An official from the Agro-forestry and fisheries quality management department under the Ministry of Agriculture and Rural Development says that the department is applying new regulations on exports to key markets such as Russia, the European Union, Brazil and the Republic of Korea. It is keeping a close watch on major developments in these markets to deal with misleading information related to food hygiene as well as unpopular stocks of goods in these markets.
Increasing trade promotion is considered a practical measure to boost exports. VITAS President Le Quoc An proposes that the MoIT and trade offices abroad support businesses to take part in trade fairs and exhibitions, especially in Asia, to secure more orders.
According to MARD Deputy Minister Diep Kinh Tan, together with trade promotion programmes, the MARD is working with importing countries and international organisations to help businesses iron out snags in exporting agro-forestry and fisheries products. It will soon launch a series of trade promotion activities in Russia, Germany and in Central Asia. However, efforts to stimulate export growth will be muddied unless effective measures are taken to control the trade deficit. The MoIT says that in order to boost exports, it will have to reduce the import of unnecessary consumer goods and encourage businesses to use home-made products instead of imported ones . The MoIT says that the export sector will find it difficult to meet its 3 percent growth target this year without great assistance from the relevant ministries, sectors and localities.
