The country's integration into the world economy had progressed in the 2006-10 period, said Truong Dinh Tuyen, former commerce minister and the head of domestic economic expert team, at a seminar on the effects of international economic integ-ration on the domestic economy in Ha Noi recently.
The domestic economy had suffered from the global downturn, forcing amendments to macro economic policies, Tuyen said, adding that the average economic growth rate had reached 7 per cent a year in the 2006-10 period.
During that time, annual inflation reached an average of 11.4 per cent, and it had continued to grow this year, he said.
Total export value surged an average 17.2 per cent over the five years, unchanged from before the country joined the WTO, he said, but total import value had increased sharply, leading to a high trade deficit.
The total export value in that period jumped from US$39.8 billion in 2006 to $72.2 billion in 2010 while the total import value climbed from $44.9 billion to $85 billion.
Domestic economic experts said in the 2011-20 period, the State should promote investment to improve production capacity for goods that achieved over $1 billion in export value in the 2006-10 period.
They included plastic, wooden furniture, textiles, garments, electrical and mechanical goods, building material and handicraft products.
Additionally, the State should also have plans to develop the footwear, software and agricultural industries, they said.
Tuyen said the State should have incentives to reduce consumption of import-ed goods, especially luxury items.
FDI policies should focus on potential partners and the processing industry, he said, adding that the State should develop support industries to reduce the import of parts and increase the value of domestic products.
Nguyen Thanh Bien, deputy minister of Industry and Trade, said a change in investment structure and an improvement in the quality of goods were key issues in the fight to promote exports and limit imports.
Viet Nam would increase investment in production to boost the quality of export products during the 2011-20 period, because many countries had high import standards, Bien said.
Economist Pham Chi Lan said that since entering the World Trade Organisation in 2001, Viet Nam's export growth rate had remained steady, while China's had doubled five years after accession to the WTO.
Viet Nam should restructure its economic sectors and focus on those that were competitive with potential to grow, Lan said.
Source: VNS
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