Deputy Minister of Industry and Trade Nguyen Thanh Bien granted an interview to a VOV reporter about the issue.

VOV: What do you think about Vietnam’s exports in 2007?

Mr Bien: The export sector has gained sustainable achievements. In the past 10 months of this year, Vietnam earned more than US$39 billion from exports, up 18.6 percent over the same period last year. The achievement is of significance in the current context when foreign markets are facing many difficulties and experiencing fluctuations. Vietnam’s crude oil is down by approximately 1 million tones in export volume and US$500 million in export value. In contrast, other export items saw a considerable increase in export value, such as coffee (84 percent), cashew nuts (over 20 percent) and pepper (20 percent). Remarkable increases in export value were also reported in processed food, garment and textiles, light industrial products and consumer goods. In particular, garment and textile exports reaped US$6.4 billion in the past 10 months, rising by more than 30 percent against last year’s corresponding period and becoming one of Vietnam’s largest hard currency earners from exports. In the two remaining months of this year, the country’s export value is expected to reach US$9 billion to fulfill the yearly target of achieving an export turnover of about US$48 billion.

VOV: As export revenue from farm produce is still lower than last year’s figure, do you think that it is now time to switch to high-tech products?

Mr Bien: Export revenue from farm produce seems to be levelling off due to a shrinking cultivated area. Obviously, the cultivation area has decreased as land has been expanded for industrial and urban zones to serve the nation’s industrialization and modernization process. In such circumstances, it is essential to restructure agricultural processes in order to increase the quality of products and export value. For example, Vietnam exported 4.25 million tonnes of rice in the past 10 months with a higher export value compared to the same period last year. The positive result was attributed to the increased export volume of high-quality fragrant and sticky rice. In the future, we will focus on increasing the quality of other farm produce such as coffee, cashew nuts, pepper and seafood.

VOV: To realize the2008 target for total export turnover of US$58.6 billion set by the National Assembly, what measures will be taken?

Mr Bien: In 2008, the Government aims to achieve an export growth rate of 20-22 percent. This is a heavy task for both the Ministry of Industry and Trade and the export sector. We are devising a detailed plan for next year to fulfill the set target. Accordingly, we will focus on developing products with a high export value, such as electronics and computer spare parts. At present, we earned an export revenue of US$1.7 billion from these products and hope to reach US$2.5 billion in 2007. Wood products reaped nearly US$600 million in 2007 and are expected to earn US$800 million in 2008, while export revenue from electricity cables will increase to over US$1 billion in 2008 from this year’s figure of more than US$700 million. In addition, we will also develop new products with high added value. This will create a firm foundation for the country to successfully realize the set target for 2008.

VOV: Many businesses have raised concerns about administrative procedures for export activities which they think are negatively impacting on export growth. How will this be resolved in the future?

Mr Bien: At the moment, we are cooperating with functional bodies such as the General Department of Customs and taxation agencies to quickly remove obstacles. We have asked local import-export management agencies to simplify administrative procedures and create favourable conditions for businesses to complete customs procedures, especially for export activities. Furthermore, we will also assist businesses in transport and logistics services to facilities their export activities.

VOV: Thank you.