Due to the economic downturn, exports to many major markets such as the US, the EU, and Japan have fallen. According to the MoIT, the country’s export turnover is estimated to reach US$13.5 billion in the first three months of the year, up 2.4 percent compared to the same period last year. Notably, the export turnover of key export items such as electronics, computer components, seafoods, coffee and cashew nuts have dropped by 10-20 percent while the turnover of some products like rubber and wire cables also fell by nearly 50 percent. Exports in the second quarter of the year will also run into difficulty as prices of goods in some foreign markets are expected to fall by more than 10 percent. However, there remain many potential markets, which are yet to be exploited by Vietnamese enterprises.

To bolster exports, the MoIT is actively speeding up the implementation of trade promotion programmes. According to economic analysts, in the current climate, it is necessary to send Vietnamese delegations overseas to invite foreign enterprises to the country to learn about the market demand and provide them with information to help them come up with ideas for future investments. This year, the MoIT has decided to inject more funding into trade promotions to increase sales and export turnover, build brand names of products and promote the image and prestige of the country abroad.

Therefore, apart from receiving support from the Government and the MoIT, enterprises and associations need to make a greater effort to improve the quality of products and develop their trademarks to exercise more control both over domestic and international markets.

MoIT Deputy Minister Nguyen Thanh Bien says that to ensure an export growth target of 13 percent this year, priority must be given to enhancing trade promotions apart from removing obstacles for enterprises. In addition, enterprises and associations should be fully aware of this and work with the MoIT to implement national trade promotion programmes.

Specialists have their say

MoIT Deputy Minister Nguyen Thanh Bien says that modes of trade promotions should be renewed.

“Previously, trade promotion programmes were submitted to the appraisal council for consideration. If approved, invitations were sent out to businesses to take part. From now on, the appraisal process is completely different. To have a programme approved, we must know how many businesses will take part and who they are. In addition, we will monitor efficiency gains resulting from a programme so we can decide whether or not to use similar models in the future.”

Ta Hoang Anh, deputy head of the trade promotions department, suggests that the government should increase its budget for trade promotions.

“The government has approved a VND172 billion budget for trade promotion programmes in 2009, double last year’s figure. However, this figure is relatively small compared to average levels around the world,” says Mr Anh. “The MoIT has proposed that the government reconsider its recent decision in order to help businesses boost exports in a highly competitive manner. Accordingly, the State will support businesses financially when contacting foreign importers or holding international conferences on key exports in Vietnam.”

Mr Anh says that this year, the MoIT-funded trade promotion programmes will focus on key sectors such as agro-forestry and seafood and manufacturing which have all been hard hit by the global economic recession.

Nguyen Thi Tong, general director of the Vietnam Leather and Footwear Association (Lefaso), says that her association’s trade promotion programme will target Germany, the US and Japan.

“We are helping businesses to showcase their products in these markets,” says Ms Tong. “We are also running domestic and overseas training courses for designers, developers and marketers to improve their capabilities, and plan to invite importers to Vietnam to link them up with domestic footwear makers.”