Of the total export value, domestic enterprises generated US$1.2 billion, and the remainder was contributed by foreign-invested enterprises. As a result, the export value in January 2006 was US$315 million less than the figure obtained in December 2005 or down 10.1 percent. The export value of domestic enterprises fell by US$155 million or 11.4 percent, and that of foreign-invested enterprises by US$160 million or 9.1 percent.

The Ministry of Trade has set a target of earning US$9.53 billion worth of exports in the first quarter of this year, or US$3.18 billion each month. This means January exports only fulfilled 88 percent of the target and Vietnam will have to work harder in March and the remaining months of the year. 

According to trade experts, only six out of Vietnam’s 20 key export items generated an export value equivalent to or higher than the figures recorded in December 2005. Coffee secured the highest growth rate of 42.9 percent, followed by electronics and spare parts (10.2 percent), rice (6.4 percent), crude oil (4.9 percent) and fruit and vegetables (4.3 percent).

Meanwhile, the export value of farm products fell sharply, particularly peanuts by 50 percent, rubber by 47.2 percent, woodwork products by 36.8 percent, anthracite and plastics by 28.6 percent.
Key export commodities such as garments, handicrafts and electric wire and cables dropped significantly by 28.4, 21.9 and 20.6 percent, respectively.

To revamp export growth, in addition to encouraging enterprises to invest in increasing their export quality and value, the Ministry of Trade has drafted trade promotion programmes to be launched in the first quarter of this year.

Accordingly, Asia is still identified as Vietnam’s major importer. Exports to this huge market are expected to make up 45 percent of the country’s total export value, with ASEAN member countries representing 15 percent, Japan 14.5 percent and China 10 percent.

Exports to America are expected to account for 23 percent, with the US alone making up 20 percent of the total value. The European market ranks third with an export proportion of 20 percent with the European Union alone making up 15 percent of the total. The remaining proportion will be shared by Australia and New Zealand (10 percent), Africa, and West and South Asia (3 percent).

An official from the Ministry of Trade said that in 2006 Vietnam will pay attention to high-demanding markets such as the European Union and the US, while seeking to expand its export markets to Africa, and West and South Asia.

The Ministry of Trade has decided to allocate US$60 million for national key trade promotion programmes in 2006. Priority will be given to seafood, rice, tea, fruit and vegetables, garments, footwear, woodwork, handicrafts, electronics and computers, bikes, electrical cables and plastics.