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Some businesses expressed their worries about low growth of export staples at a preliminary summing up conference on local export staples development.

Furniture and porcelain are one of local export staples.

Investment promotion for 5 groups of export staples

According to the two year preliminary summing report on local export staples development till 2010, only one fifth of local export staples showed its constant reduction on export turnover, output and marketshare in consecutive two years. It is the very handicraft industry with export turnover of US$320mil, down 11.80% per year. The industry’s consumption market reduced from 70 to 65 nations and territories.

In the meantime, garment and textile industry reaches a fair growth rate (20.43% per year). The remaining three staple of woodwork processing, rubber and footwear keep maintaining their annual growth rate at 4,26%, 15,66% and 10.26%, respectively but their marketshare are under plunge.

According to functional agencies, as of the end of 2009, local export staples reached a growth in turnover, output and marketshare but they failed to obtain the set plan. In 2010, the functional agencies will spur investment in export market, turnover and output for 5 groups of export staples.

Looking at difficulties

According to the local department of Trade and Industry, the global economic recession’s influence on the country made industrial products’ consumption market narrow, making enterprises cut output and workforce and so on. At that time, the country’s economy faced a series of difficulties of inflation, price hike. Besides, staples of timber, handicraft, garment and footwear, considered as ‘export spearheads’, encountered many difficulties including non-tariff barriers and protection.

Minh Long I Porcelain Company director Ly Ngoc Minh, said though the company did not face difficulties like timber industry, many obstacles remain existent. To say, local businesses can not buy kaolin product whilst other provinces and cities give priority for local businesses. Therefore, the material source becomes scarce, triggering obstacles for delivery.

Aside from difficulties of material, market, price, exporters have encountered many problems including shortages of capital source and workforce.

In addition, tax policy remains many obstacles of high tax rate of imported material source.

Joining forces to develop

Assessing export prospect in 2010, Nguyen Thi Dien, director of the local department of Trade and Industry, said in the first quarter of 2010 local export staples still led in growth. Especially, some items of electrical components and cables reached a fair growth, showing a remarkable prospect of export. However, exports have faced risks of financial market, capital pressure, competition, production capacity and so on.

Therefore, the government has so far teamed up with agencies to set out solutions to solve difficulties for businesses. Meanwhile, the local department of Trade and Industry has launched a series of measures to spur exports.

Dien said that the department has teamed up with industries association and some businesses to facilitate businesses’ capital approach and trade promotion. Moreover, to overcome the upcoming difficult period, according to Dien, enterprises should join in industries association to create mutual linkage and support.

Reported by T.Hong – Translated by A.C