The government cannot achieve its import-export balance
target by 2020 unless drastic measures are taken.
Vietnam’s total export value
exceeded $87 billion in the year to November, surging $7.8 billion over the
projected full-year plan. However, total import value in the same period
reached $96.1 billion, leading to a trade deficit of $8.9 billion.
In fact, this $8.9 billion
trade deficit came after the government took a comprehensive suite of measures
to reign in import value growth, particularly that of luxurious products such
as automobiles, mobile sets, liquour and cosmetics.
Deputy Minister of Finance
Nguyen Thi Minh proposed the Ministry of Industry and Trade consider banning
temporary import-export items subject to excise tax payments or waste materials
to avoid the possibility they could be sold in Vietnam during ‘temporary
import’ period.
Reality shows that state
competent bodies seized over 17,000 illegal cases relevant to temporary
import-re-export with goods valued approximately VND601 billion ($28.6 million)
in the past 11 months.
In the home market, market
management teams tacked 66,709 trade frauds relevant to smuggled, banned, fake
and substandard goods valued at VND268 billion ($12.76 million).
Besides, a sequence of
luxurious items found their way into the local market despite the government
efforts for import restrictions.
In the textile and garment
sector for example, the import value of cloth and yarns surpassed $8 billion
with $6 billion alone from cloth imports, according Vinatex deputy general
director Le Tien Truong.
This was partly attributed to
poor foreign investment into this field in the past decade.
“The Dinh Vu yarn fibre project
cost $200 million and is mostly handled by PetroVietnam, while Vinatex has a
tight budget for such investment,” said Truong.
To boost export value,
Vinatex’s member firms like Viet Tien, Garco 10 and Nha Be have opened retail
outlets in major export markets. Vinatex reportedly source strategic partners
being distributors in big export markets during equitisation process of its
members to remain steadfast during international integration.
Thanh Huong | vir.com.vn
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