Export restructuring

(VEN) – Processed goods exports have continued to increase in value, creating a foundation for Vietnamese export development.

Processed goods exports have increased in volume and value

Processed goods exports have increased in volume and value

According to the International Monetary Fund (IMF), Vietnam could reach a gross domestic product (GDP) growth of 5.3 percent in 2013.

The General Statistics Office (GSO)’s statistics showed that processed goods exports reached US$16.34 billion in 2005 (accounting for 50.3 percent of the country’s total export value) and US$63.1 billion in 2011 (65.1 percent of the country’s total). With major increases in telephone exports, processed goods exports, including materials and fuel, transport machinery and equipment, have tended to increase in volume and value and are expected to make a higher contribution to the country’s export value in 2013.

A problem is that unprocessed goods exports’ contribution to the country’s export revenue remains large. According to the GSO, these exports came to more than US$16 billion in 2005 (accounting for 49.7 percent of the country’s total) and US$33.7 billion in 2011 (34.8 percent of the country’s total). Of these exports, foods and foodstuffs, live animals came to US$6.35 billion in 2005 (accounting for 19.5 percent of the country’s total) and US$17.44 billion in 2011 (18 percent of the country’s total).

The tardy addition of value to these exports has been limiting the socioeconomic efficiency of a large part of export activities in Vietnam. Hence, restructuring these exports and agricultural production would increase added value and improve the competitiveness of Vietnamese goods in foreign markets.

Experts have said that one shouldn’t think that the above-mentioned decreases in unprocessed goods exports’ contribution to the country’s export revenue was a really good achievement because this decrease was just because of the strong increase in the proportion of processed goods being exported that gain had only been due to increased telephone exports. Therefore, decreasing the contribution of unprocessed goods exports to the country’s export revenue should be evaluated based on export value, not only their contribution to the country’s export revenue.

Restructuring of such exports is related to the position of the domestic economic sector. Statistics show that this economic sector accounted for 42.8 percent of the country’s total export revenue in 2005, with most of the remainder made by the foreign direct investment (FDI) sector. The contribution of the domestic economic sector to the country’s export revenue decreased yearly, while that of the FDI sector stood at 63 percent in 2012 and 66.3 percent in the first seven months of 2013./.

By Ngoc Minh

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