Exports may grow 20% this year, experts say

Based on the export performance in January-July and the number of contracts recently signed with foreign partners, the country may achieve an export growth of up to 18-20 percent this year, twice the target set by the National Assembly, experts said.

The textile and garment sector may achieve an export growth of 18-20 percent, while the footwear industry may see its export turnover increase by 15-16 percent this year, Diep Thanh Kiet, Vice Chairman of the Association of Garments, Textiles, Embroidery and Knitwear forecast.

Businesses in the woodwork processing sector have accelerated their efforts to fulfill orders from foreign partners, in order to meet the sector’s export target of US$3 billion this year.

Artisans make art handicraft products for export at Quan Quan Company.

In the first seven months of the year, the prices of many export commodities increased, especially those of crude oil, coal, rubber, rice, tea, pepper and cashew.

Export markets also expanded in the period, with exports to countries in Asia, the US and Europe increasing by 48 percent, 23 percent and 15 percent respectively.

The period saw 11 export items achieve an export turnover of over US$1 billion each, including textiles and garment, crude oil, footwear, seafood, rice, coffee, steel and iron, woodworks, machinery and equipment, computers and parts thereof, and precious stones and metals.

In the last quarter of this year, exports are likely to increase sharply and the prices of some key export items may continue rising, according to the Minsitry of Industry and Trade.

Challenges

Many textile and garment companies are facing a shortage of workers, finding it hard to fulfill orders they have received from foreign importers, Mr. Kiet said.

Lacking workers together with an increase in prices of imported materials have diminished profit in many woodworks exporters, experts said, adding that some businesses have planed to set up bonded warehouses in foreign countries to accelerate exports and cut down expenses.

Meanwhile, exporters of seafood and farm produce are facing a shortage of both workers and materials.

In addition, possible anti-dumping actions by foreign companies is also one of the biggest chellenges to domestic businesses in some industries. Therefore, the Competitiveness Management Department has set up an early alert system that monitors developments in key markets to minimize the risk of anti-dumping actions agaisnt domestic businesses.

To help exporters boost growth, the State should assist them in expanding export outlets and obtaining more capital for business purposes. In addtion, the product price and market forecasts should also been stregnthened to assist exporters in preparing export plans effectively. – SGGP

Tags: Vietnam exports, Vietnam exports 2010, Vietnam trade