Actively responding to new challenges for exports

Monday, 2017-03-06 04:53:24
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Vietnam set a target of reaching the export growth of 6%-7% this year.
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NDO – The world trade’s growth was forecasted to increase in 2017, which is expected to create favourable conditions for Vietnam’s exports activities. However, global economic instabilities which have prevailed since the first months of this year have posed numerous difficulties and challenges for the completion of the export growth target of 6%-7% this year.

Forecasts from many research institutions showed that Vietnam’s export turnover can maintain the growth rate, but it will be hard to reach a high increase due to signs of decline of the trend of trade liberalisation in the world.

Trade protectionism is in danger of returning as many countries are adopting more and more trade defence measures. Many technical barriers and rules of origin have been set out in order to restrict the exploitation of advantages of tariff reductions. This trend has also posed new challenges for Vietnamese enterprises while exporting their goods to countries and regions that have signed free trade agreements (FTA) with Vietnam.

Meanwhile, the export growth of domestic enterprises is always lower than the entire country’s growth. For example, in 2016, the export turnover of the domestic enterprises sector increased 4.8% compared to the previous year, lower than the 8.6% increase of the general export turnover of the country.

In addition, the sector’s contribution to the country’s export performance is declining. The share of domestic enterprises in the total export turnover fell from 29.1% in 2015 to 28.4% in 2016.

It is highly essential to seriously review and assess the decline in export growth of the domestic enterprises sector in recent years, particularly in the context that exports to foreign countries are facing more difficulties due to the return of the trend of trade protectionism.

The new situation resulted in many enterprises quickly adjusting production and trade plans as well as product and market restructuring, especially in relation to competitiveness. If the enterprises’ competitiveness is raised, they can actively respond to the new situation as well as overcome new challenges.