According to the set plan, in 2008, total export turnover of goods is expected to reach US$59.2 billion, up 22 percent compared to last year’s figure. The processing industrial group continues to post high growth with estimated export turnover reaching US$28.2 billion, up 30.8 percent against the previous year. Mr Pham The Dung, head of the Import-Export Department under the Ministry of Industry and Trade (MoIT) said that there have been significant changes in export activities this year, especially in the mineral group. For example, crude oil has always accounted for over 20 percent in the previous years, but is it now likely to drop to around 16 percent this year. The second group (including agro-forestry and aquatic products) previously made up around 20 percent in the previous years, but is expected to decline to between 17-18 percent this year. The industrial and processing industrial groups is set to increase to 67-68 percent compared to last year’s figure of 60 percent. In 2008, the export growth will mostly depend on the growth of industrial and processing industrial groups.

Mr Dung said, in January, the country’s export turnover of goods increased by 19.7 percent, which was lower than the previous years’ figures. Therefore, to achieve a growth rate of 22 percent in 2008, there should be continuous growth over the following months. The MoIT devised an export project with drastic measures to boost exports, increase the value of exporting goods by investing in the processing stage and strengthening the production and export of new goods.

Currently, Vietnam’s key export markets remain in Asia with estimated turnover reaching more than US$25 billion this year, accounting for 43 percent of the country’s total. The following markets are Europe with an expected turnover of over US$11 billion and the US market (US$13 billion). The MoIT has assigned Vietnamese trade centres abroad to help boost trade promotion activities and expand markets. In addition, trade centres should actively promote investment in industrial and trade projects of the trade sector and other sectors.

Japan is one of Vietnam’s lucrative markets through which Vietnam can sharply increase its export turnover thanks to staple export items such as crude oil, coal, seafood, garments and textiles, fine arts and handicrafts, wood products, fruits and vegetable, electronic components, electric and cable wires.

Vietnamese trade counsellor in Japan Vu Van Trung said that small and medium sized enterprises need to ensure the quality of products especially agro-forestry-aquatic products and consumer goods, establish distribution networks and develop new products.

The industry and trade sector predicts that Vietnam’s export turnover to the US may increase by 27-28 percent in 2008. However, the country is likely to face unforeseeable difficulties with this major market as the US economy is slowing down and the US dollar is continuing to drop in value, said Mr Trung.

According to Nguyen Duy Khien, Head of the American Department under the Ministry of Industry and Trade, Vietnam’s export turnover currently makes up a small proportion of products imported from the US. Therefore, the country still has many opportunities to boost exports to this market but this depends on the competitive capacity of Vietnamese goods.

Last year, the export growth of some Vietnamese export products such as garments and textiles and footwear to the US market was higher than the import growth from this market. This year, the US volume of imported goods is not much expected to increase sharply, but looks more likely to drop. If the competitiveness of Vietnamese products is good, Vietnam can still seize the given opportunities to boost exports by controlling other exporters’ market shares.

In 2008, the Ministry of Industry and Trade will strongly focus on developing supporting industries to promote domestic production and service exports in order to reduce the trade deficit. Vietnam is expected to earn US$7.4 billion in service export turnover this year, up nearly 22 percent over 2007, said Mr Khien.