Trade with the US in 2009 experienced numerous difficulties due to the global financial crisis. The demand for goods from the US fell sharply, resulting in a substantial reduction in the export revenue of many countries that exported goods to the US. However, Vietnam’s exports to the US market remained stable.

Reporter: What is your assessment of Vietnam-US trade relations in 2009?

Mr Thoan: In 2009, the volume of US imports dropped by around 30 percent, and the export turnover of countries which exported to the US also fell considerably, such as Germany, by 37 percent, Japan, by 34 percent, and Canada, by 32 percent. Nevertheless, by October 2009, Vietnam’s export turnover to the US had dropped by only 2.3 percent, the lowest level ever on record, rising from its 30^th to 25^th position in the list of leading exporters to the US.

Reporter: Could you talk about Vietnam’s key export items to the US market this year?

Mr Thoan: Currently, Vietnam has three major products such as garment and textiles, footwear and furniture products. The country’s garment and textiles products exported to the US market earned approximately US$4.8 billion in the first ten months of 2009. This figure is expected to reach US$5.2 billion by the end of this year, ranking second after China. Vietnam’s footwear also replaced Italy as the second biggest exporter to the US market.

After achieving such good results in 2009, I highly appreciate the efforts made by local businesses in launching a large number of promotional campaigns to boost their marketing activities and increase their exports. It’s worth noting that to attract more customers, Vietnamese businesses had to accept lower profits.

Reporter: What difficulties did Vietnamese exporters face, and what lessons have they learnt to become successful in the US market?

Mr Thoan: Currently, Vietnamese businesses are faced with technical barriers imposed by the US under the pressure of some US businesses or trade missions or congressmen who advocate protectionism against the trend of trade and investment liberalisation being followed by many countries in the world, including the US itself.

Vietnam mostly exports agricultural products to the US, hence, to deal with these hurdles, Vietnamese businesses have to strictly follow every step, from production to transport and to processing.

In my point of view, to successfully deal with these issues, it is essential to provide local businesses with incentive policies so that they can invest more in technology and in developing their human resources. This is absolutely for Vietnam to create an effective export strategy.

Reporter: Could you elaborate on Vietnam’s plan to promote its exports to the US in 2010?

Mr Thoan: The Prime Minister has authorised the Ministry of Trade and Industry to consider and approve a national programme of trade promotions in 2010 and there is a plan afoot to launch more than 10 promotional programmes in the US. In the meantime, we are working with the Vietnam Association of Seafood Exports and Producers (VASEP) to organise a programme to promote seafood in Boston.

Reporter: What do you think about Vietnam-US trade relations in 2010?

Mr Thoan: There are bright prospects for Vietnam’s exports to the US in 2010, even better than in previous years. We estimate that the volume of US imports will increase and command a higher price. Vietnam’s economy will improve and local businesses will have more opportunity to penetrate the US market. It is predicted that Vietnam’s exports would grow by 10 percent next year against 2009.

Reporter: Thank you.