Tra export forecasts lowered

The Ministry of Industry and Trade has reduced its October forecast for
tra fish exports from 1.38 billion USD to 1.35 billion USD following
plans by the US to impose an anti-dumping tax of 130 percent on the
fish.

The Vietnam Association of Seafood Exporters
and Producers (VASEP) said the country's total seafood export value this
year would be 4.81 billion USD, lower than earlier estimates.

The new tax rate, far in excess of any previous dumping tariffs
imposed on Vietnamese seafood exports in the last eight years, was
agreed at the sixth administrative review by the US Department of
Commerce (DOC).

In pervious DOC reviews, most Vietnamese exporters enjoyed a tax rate of just 0.52 percent – the lowest possible.

VASEP said the US department's ruling is unjustified and that it
was based on the price of raw materials imported from the Philippines ,
not from Bangladesh as was previously the case.

The 130-percent anti-dumping tax rate will be imposed on Vietnamese tra
exporters, such as Vinh Hoan, Vinh Quang, Agifish, ESS LLC and South
Vina from March 2011.

Nguyen Ngo Vi Tam, deputy
general director of Vinh Hoan, said her firm will reduce exports of tra
fish to the US and increase exports to other markets as a result.

VASEP said DOC has given Vietnamese tra exporters
until October 26 to submit documents relating to their exports if they
want the draft tax rate reviewed./.

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Vietnam exports to new EU member states rise strongly

HCMC – Vietnam’s shipments to the 12 new member states of the EU are rising sharply recently, according to statistics from the European Market Department under the Ministry of Industry and Trade.  

In the January-August period, Vietnam’s exports to Lithuania more than tripled year-on-year to US$10.9 million from US$3 million. Czech Republic imports from Vietnam rose 212% over the same period of last year, hitting US$57 million.

Exports to other markets, including Estonia, Slovenia, Slovakia, rose by between 20% and nearly 130% in January-August.

Despite the sharp rise, exports to these countries are still far lower than those to major traditional EU markets, including Germany with over US$1 billion of imports from Vietnam in the period.  

The department also said total exports from Vietnam to the EU market increased by more than 17% to US$4 billion in the period.  

Rob van Eijbergen, a special representative of the Center for the Promotion of Imports from Developing Countries (CBI), told the Daily in a recent meeting that new EU-12 with 105 million consumers is the potential market for Vietnamese producers.  

The expert, who works for an agency of the Netherlands’ Ministry of Foreign Affairs, explained that the markets need cheap products with no strict requirements on quality. He, however, suggested that targeting the undemanding new EU member states shouldn’t be long-term.  

“If Vietnam producers can access choosy markets such as the EU-15, they can conquer other strict markets,” said Eijbergen.  

While the EU-12 markets are undemanding and looking for cheap-priced products, the other 15 member states of the EU are raising up their technical requirements on imports, especially food products, such as stricter control on residue levels.  

In the meeting with local exporters, Eijbergen said that Vietnam exporters needed to follow food safety protocols and could not access supermarkets without GLOBALGAP standards for food products. The consumers in these markets also have requirements on producers’ social responsibilities relating to child labor, workplace and environment issues.  

Therefore, new technical barriers are expected to be challenges to Vietnamese exporters in the coming time, he said, adding the market that accounts for 45% of the total world imports is still under pressure due to crisis.    

“Last year, not only exports from Vietnam but also from other suppliers in the world to the EU market decreased. I’m not sure whether the market will improve next year, but I hope it’ll be better,” said the expert.

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Free trade deals give boost to Vietnam exports

Photo: AFP

Import tariff cuts under free trade agreements signed with several countries in the region have helped boost Vietnam’s exports this year.

Vietnam concluded a bilateral FTA with Japan last year and has multilateral FTAs with other countries like China, Korea, Japan, Australia, and New Zealand signed under the aegis of ASEAN of which it is a member.

Around 21 percent, 79 percent, 28 percent, and 13 percent of Vietnam’s exports to China, Korea, Japan, and ASEAN member nations enjoy tax cuts under FTAs.

Saigon 3 Garment Co’s exports to Japan have surged 20 percent to US$55 million, its chairman, Pham Xuan Hong, said.

Agreements between Southeast Asian countries and Korea that cut taxes on textile and apparel products from 13 percent and 8 percent have driven Vietnam’s export earnings in the year to date to $220 million, up 60 percent, Le Van Dao, general secretary of the Vietnam Textile and Apparel Association, said.

The deal with Korea, which has also seen seafood import taxes cut from 20-28 percent to 13-20 percent, has lifted exports.

Tax on Vietnamese fruit exports to China, which used to be 12-24 percent, has been abolished, helping exporters gain a foothold there, Huynh Quang Dau, deputy chairman of the Vietnam Fruit Association (Vinafruit), said without elaborating.

However, Vietnamese businesses have not made optimum use of the FTAs.

While some actively promote their products in these countries, many wait for contracts to “drop in their laps,” Hong of Saigon 3 Garment said.

It is foreign firms who are searching for potential Vietnamese partners, he added.

Technical barriers, mostly related to product origin declarations, packaging, and labeling standards, are still keeping Vietnamese fruits out of to China, Vinafruit said.

But Le Quang Lam, deputy head of the Ministry of Industry and Trade’s Multilateral Trade Policy Department, said they are important issues to which Vietnamese exporters must pay attention when taxes come down.

However, the websites of the ministry, Ho Chi Minh City Trade Promotion Center, Vietnam Chamber of Commerce and Industry, and many business associations do not have updated or information about FTAs and are not user-friendly.

Only the National Committee for International Economic Cooperation’s website at www.nciec.gov.vn/index.nciec??242 is reasonably useful.

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Timber exports surge in major markets

The turnover from timber and furniture exports in the first nine months
of this year is estimated at 2.43 billion USD, a year-on-year increase
of 37.7 percent, according to the Ministry of Agriculture and Rural
Development (MARD).

The ministry reported that the total export turnover of forestry products has risen to 2.6 billion USD.

According to Vietnam’s Timber and Forest Products Association, timber
exports are showing positive signs, as orders for exports from now until
the end of the year have risen rapidly and many of them to the
country’s major markets such as the US and the EU are very substantial.

Timber now is amongst the top five Vietnamese exports, and the country is Southeast Asia’s second biggest timber exporter.

Vietnam now has more than 2,500 timber processing businesses, 2.8
times higher than in 2000 and 7.7 times more than 1990. The number of
non-State businesses represents 90 percent of the total.

Timber exports in recent years have increased sharply with more than
3,000 different items produced. Vietnamese wooden products are now sold
in 120 foreign markets, including the US, EU, Japan, Australia, the
Republic of Korea, China and Malaysia.

However, besides domestic resources, Vietnam also has to import a large amount of materials for the industry.

In the first nine months of this year, Vietnam imported 827 million USD worth of timber, down by 31 percent year-on-year./.

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Agricultural exports rise 22.3% in first nine months

Workers process pineapple for export in Ninh Binh Province. Agricultural exports reached US$14 billion in the first nine months of the year. — VNA/VNS Photo Huy Hung

HA NOI — Agricultural export value reached US$14 billion in the first nine months of the year, an increase of 22.3 per cent over the same period last year, according to the Ministry of Agriculture and Rural Development.

Of the total, seafood accounted for $3.47 billion – an increase of 14.2 per cent over the previous year – while forestry products accounted for $2.6 billion, a whopping 36.3 per cent increase.

Remaining agricultural exports totalled $7.2 billion, an increase of 21.1 per cent, of which rice earned $2.56 billion, an increase of 14 per cent.

The sector as a whole generated 27 per cent of the nation's total export value in first nine months of the year, the ministry said.

Nguyen Viet Chien, director of the ministry's Centre for Information and Statistics, said the increases were due both to high demand and rising global prices.

Among leading cash crops, rice exports totalled 5.5 million tonnes during the nine-month period, an increase of 12 per cent, while rice prices rose to an average of $470 per tonne, 3 per cent higher than last year and nearly comparable to the average price for rice from Thailand, where rice production was effected this year by natural disaster.

Despite gloomy forecasts earlier this year that coffee exports would not reach $1 billion during 2010, coffee exports rose 4.2 per cent in the first nine months to a volume of 925,000 tonnes, while export value has already surpassed $1.3 billion.

Rubber exports climbed to 531,000 tonnes in the first nine months, an increase of 10.9 per cent, earning $1.45 billion – double last year's value.

Tea exports rose 4 per cent in volume during the period to 100,000 tonnes and 16.7 per cent in value to $146 million, while cashew exports jumped by 10 per cent in volume to 143,000 tonnes and by 30 per cent in value to $780 million.

Favourable conditions on world markets have made it likely that total agricultural export value would exceed $16 billion by the end of the year, Chien said. — VNS

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Exports to Brazil surge by 160% in first eight months

HA NOI — Exports to Brazil reached US$296 million in the first eight months of the year, an increase of 160 per cent over the same period last year, according to the Vietnamese trade office there.

Key exports included building materials, industrial products, footwear, garments and rubber products, the office said.

The Ministry of Industry and Trade attributed the sizeable increase to success in exporting cement, steel, pottery and electrical products to the Brazilian market, helping offset declines in traditional exports like seafood and footwear in the third quarter caused by difficulties in complying with new Brazilian regulations.

Cement exports to the South American nation totalled over $36 million during the period, while steel exports racked up over $7 million, helping Viet Nam generate a trade surplus with Brazil of nearly $15.6 million for the year so far.

Viet Nam's exports to Brazil had the advantages of reasonable price and quality in a market with a population of 190 million and a growing per-capita income, said the director of the export promotion centre under the ministry's Trade Promotion Agency (Vietrade), Le Xuan Duong.

However, Duong said, Viet Nam's footwear and garment sectors had yet to fulfil their export potential to Brazil.

Brazilian footwear products already held the lion's share of the Latin American market and were exported to 141 countries worldwide, so Viet Nam hoped to use Brazil as a gateway for Vietnamese footwear to enter other markets in the region, Duong said.

But a number of export products, including seafood and footwear, were facing the risk of additional technical barriers imposed by Brazil, he added. Vietnamese seafood exports to Brazil were currently halted for investigation of breeding and processing conditions and food safety standards.

Vietrade said that to further exploit trade opportunities in Brazil, Vietnamese businesses should better research the market and focus on more value-added products such as electronic components and consumer goods.

Two-way trade between Viet Nam and Brazil surged roughly 60 per cent per year on average between 2005-08, Vietrade said, while the total reached $564 million last year, double 2007's figure. — VNS

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More Vietnamese goods head for regional markets

For the first time ASEAN has surpassed the EU in importing Vietnamese goods, reported the Ministry of Industry and Trade.

In July, Vietnam exported US$6.21 billion worth of goods to ASEAN while the export value to the EU was $5.98 billion.

Nguyen Thanh Bien, deputy minister of Industry and Trade, attributed the EU's smaller import consumption to the debt crisis.

Export turnover to ASEAN is expected to hit $8.88 billion by the end of the year while the estimated figure for the EU market will be $10.9 billion, according to export plans from the ministry.

Vietnam will have a difficult time boosting its exports to the Southeast Asian block because Vietnam and ASEAN countries produce similar, competitive commodities.

" Vietnam can capitalise on opportunities to enhance exports to other markets via the free trade agreements with ASEAN nations rather than approaching a strong export growth in the block," said the ministry's multi-lateral trade policy department director Tran Quoc Khanh.

About 13 sectors' export values were higher than 1 billion USD each during the first eight months of the year, reported the ministry. Staple exports include textiles and garments, footwear, wooden furniture, seafood and coffee.

Traditional markets, including the EU, the US , Japan , mainland China and the Republic of Korea , continue to be the largest consumers of Vietnamese exports.

Demand fluctuations in these markets would directly impact Vietnam 's exports, said experts.

Nguyen Son, deputy general secretary of the Vietnam Textile and Apparel Association (Vitas), said the US economy's poor performance in July resulted in lower demand.

Nguyen Ton Quyen, deputy chairman of the Vietnam Timber and Forest Product Association, said Vietnam aims to earn $1.3 billion from wooden furniture exports to major markets this year.

Russia , Eastern Europe, the Middle East, Africa and North America markets have been difficult to penetrate, especially during the global economic crisis.

The textile and garment industry has had difficulty tapping into the Russian market because of the country's high import taxes. Africa has a large amount of demand for clothing, but enterprises have had difficulties negotiating payment methods.

Experts warned local firms about technical barriers in large markets.

New legislation in the US and the EU are likely to have an adverse impact on Vietnamese exports, said experts.

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More Vietnamese goods head for regional markets

For the first time ASEAN has surpassed the EU in importing Vietnamese goods, reported the Ministry of Industry and Trade.

In July, Vietnam exported 6.21 billion USD worth of goods to ASEAN
while the export value to the EU was 5.98 billion USD.

Nguyen Thanh Bien, deputy minister of Industry and Trade, attributed
the EU's smaller import consumption to the debt crisis.

Export turnover to ASEAN is expected to hit 8.88 billion USD by the
end of the year while the estimated figure for the EU market will be
10.9 billion USD, according to export plans from the ministry.

Vietnam will have a difficult time boosting its exports to the
Southeast Asian block because Vietnam and ASEAN countries produce
similar, competitive commodities.

" Vietnam can
capitalise on opportunities to enhance exports to other markets via the
free trade agreements with ASEAN nations rather than approaching a
strong export growth in the block," said the ministry's multi-lateral
trade policy department director Tran Quoc Khanh.

About 13 sectors' export values were higher than 1 billion USD each
during the first eight months of the year, reported the ministry. Staple
exports include textiles and garments, footwear, wooden furniture,
seafood and coffee.

Traditional markets, including
the EU, the US , Japan , mainland China and the Republic of
Korea , continue to be the largest consumers of Vietnamese exports.

Demand fluctuations in these markets would directly impact Vietnam 's exports, said experts.

Nguyen Son, deputy general secretary of the Vietnam Textile and
Apparel Association (Vitas), said the US economy's poor performance
in July resulted in lower demand.

Nguyen Ton Quyen,
deputy chairman of the Vietnam Timber and Forest Product Association,
said Vietnam aims to earn 1.3 billion USD from wooden furniture
exports to major markets this year.

Russia ,
Eastern Europe, the Middle East, Africa and North America markets have
been difficult to penetrate, especially during the global economic
crisis.

The textile and garment industry has had
difficulty tapping into the Russian market because of the country's high
import taxes. Africa has a large amount of demand for clothing, but
enterprises have had difficulties negotiating payment methods.

Experts warned local firms about technical barriers in large markets.

New legislation in the US and the EU are likely to have an adverse impact on Vietnamese exports, said experts./.

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Plastics exports to reach 1 billion USD in 2010

The Ministry of Industry and Trade (MoIT) forecasts that the turnover of
the country’s plastics exports may reach 1 billion USD this year as
Vietnam ’s plastic products have a firm foothold in the world.

According to the MoIT’s Industry and Trade Information Centre, the
export of plastic products in the first seven months of the year earnt
554 million USD. Amongst the 70 importers of Vietnamese plastic
products, Japan is the largest.

In the second
half of July only, Vietnam ’s exports of plastic products to Japan
reached over 11 billion USD, accounting for 26.5 percent of the
country’s total.

It was followed by the US
with an estimated turnover of 5.7 million USD. The US was the
largest importer of Vietnamese plastic products in 2009.

Besides their traditional markets, Vietnamese businesses have also
penetrated markets in new EU member countries like Lithuania , the
Czech Republic , Estonia , Hungary and Poland as well as
African and Middle Eastern countries, to maintain their export growth
and avoid risks when traditional markets fluctuate.

According to the MoIT, plastics is one of the fastest-growing
production sectors in Vietnam over the past ten years, with an
average growth rate of 15-20 percent per year. Plastic packaging earns
the most, accounting for 80 percent of the total value of plastic
exports.

However, the plastics sector still
relies heavily on imported materials and production is usually on a
small scale with no long-term investment strategies. At present, the
sector needs around 1.5 million tonnes of raw materials each year and
the domestic supply can only meet one fifth of this. Up to 90 percent of
the 2,000 domestic plastic producers are small and medium sized
businesses.

The Vietnam Plastics Association (VPA)
recommends that businesses should focus investment on groups of export
staples that have a competitive edge, develop hi-tech plastic products
and self-degrading wrappings and boost the production of domestic raw
materials. There should also be more emphasis on re-cycling.

At present, the plastics sector is focusing on building several
factories to produce polypropylene and polyethylene, which are due to
become operational later this year./.

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Plastic exports set to hit $1 bln

Vietnam’s 2010 plastic exports are expected to reach US$1 billion for the first time ever, following a dramatic increase in shipments from the previous year.

The country has shipped more than $554 million worth of plastic products a month so far this year, according to a report published by the Vietnam Economic Times Monday. In July alone, exports were reported to total $86.4 million, up 24.2 percent from the same month last year.

Vietnamese plastic products are now available in nearly 70 countries. Some of the largest markets are the US, Japan, Cambodia, Germany and the UK.

Plastic is one of the fastest growing industries in Vietnam and local products have great potential to secure their presence in the global market, the Ministry of Trade and Industry said.

According to the Vietnam Plastics Association, the biggest challenge for the sector now is its dependence on imported materials. The country has to import 1.6-1.7 million tons of plastic materials every year as domestic supplies add up to around 300,000 tons.

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Plastic exports set to hit $1 bln

Vietnam’s 2010 plastic exports are expected to reach US$1 billion for the first time ever, following a dramatic increase in shipments from the previous year.

The country has shipped more than $554 million worth of plastic products a month so far this year, according to a report published by the Vietnam Economic Times Monday. In July alone, exports were reported to total $86.4 million, up 24.2 percent from the same month last year.

Vietnamese plastic products are now available in nearly 70 countries. Some of the largest markets are the US, Japan, Cambodia, Germany and the UK.

Plastic is one of the fastest growing industries in Vietnam and local products have great potential to secure their presence in the global market, the Ministry of Trade and Industry said.

According to the Vietnam Plastics Association, the biggest challenge for the sector now is its dependence on imported materials. The country has to import 1.6-1.7 million tons of plastic materials every year as domestic supplies add up to around 300,000 tons.

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