To that end, the ministry has been working with relevant agencies to finalise paperwork for the European Union's consideration of the country's market economy status in hopes of boosting exports to EU market. Once admitted to the World Trade Organisation (WTO), Vietnam will also be able to find new markets for its exports.

Experts, however, warned domestic enterprises of their poor competitiveness, as demonstrated by their huge trade deficit of US$31.96 billion during 2001-05. They also pointed to the need for policymakers to further tap the potential of foreign invested enterprises, which managed to gain a trade surplus of US$12.64 billion over the past five years.

Vietnam expects to reduce its trade deficit to between US$4 and 4.5 billion this year, accounting for 12 percent of import-export revenues. The country's trade deficit reached US$9.86 billion in 2003 and dropped to US$4.75 billion in 2005.