Vietnam’s export growth performance has become a highlight of the national economy in 2017 as total import-export revenues reached the US$400 billion milestone, with exports estimated to make up the impressive figure of US$200 million.
FTAs allow export market expansion
Economic adviser Vo Tri Thanh has attributed the country’s bright economic outlook in 2017 to Vietnam’s successful hosting of the APEC Economic Leaders’ Week with the signing of trade deals worth up to US$20 billion, the exponential growth of 21% against the set target of 10%.
Such growth is attributed to the development of domestic enterprises and increases in exports farm produce, especially seafood, fruit and vegetables.
Economist Luu Bich Hop in points hi-tech agriculture as a success of restructuring in agriculture, noting that shift to hi-tech will enable the agriculture economy to shape into a sustainable farming model with a focus on the development of clean and organic farming.
Despite natural calamities and the effects of climate change, this year has seen the agricultural sector undergo major developments with a dramatic shift from rice to shrimp production and interconnection between farmers and businesses to enhance processing capacity and increase the value of exported products.
Vietnam has taken full advantage of the opportunities presented through bilateral and multilateral free trade agreement suit has negotiated to increase the country’s standing as a goods exporter from 50thto 26th place over the past ten years.
Dr Luong Van Khoi, Deputy Director General at National Centre for Socio-Economic Information and Forecast says Vietnam’s economic growth this year has lessened its dependence on mining exploitation while the country has intensified the expansion into foreign export markets through FTAs.
Regarding the quality of exports growth with the agricultural sector recording a trade surplus of US$7 billion, Minh Phong says Vietnamese businesses have been on the right track to boost agricultural investment and focus on increasing quality rather than quantity.
Service exports considered a breakthrough
Regarding the country’s trade balance, despite the nation enjoying its highest trade surplus so far, atUS$3.17 billion, this number is mainly the result of the import and export activities of foreign-invested enterprises (FIEs).
FDI businesses enjoyed a trade surplus of over US$23.8 billion while domestic businesses have run a trade deficit of up to US$20.67 billion.
Dr Nguyen Minh Phong says for the improvement of import-export restructuring, Vietnam needs to develop services, especially logistics services to realize the desired surplus in service exports and map out a development strategy for the support industry by integrating with the global supply chain to secure export markets.