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COVER STORY

EXPANDING ON mineral exports and the increase in indus-
trial products reveals that local businesses
have shifted towards industrial exports.
The changes in investment by foreign
ALL FRONTS industrial businesses also lay behind
export growth in recent times, especially
investment in manufacturing and pro-
Minister of Industry and Trade Nguyen Hong Dien tells VET about the cessing exports. Production by foreign
positive performance of Vietnam’s export activities in recent times. enterprises also presents opportunities
for local businesses to participate in their
supply chains.

% What solutions and priorities has the
Ministry of Industry and Trade (MoIT)
adopted to accelerate exports this year?
The global economy and Vietnam’s
economy both possess advantages and dis-
advantages that affect export growth.
In terms of advantages, nearly all coun-
tries around the world have broad vaccine
coverage and loosened social distance
measures, which will help consumption
demand recover. More imported products
will be consumed, including those from
Vietnam. And local businesses can use the
incentives in FTAs to boost export activities.
The Vietnamese Government has intro-
duced many solutions to support businesses
hit by Covid-19. Moves in investment to
restructure supply to enterprises will be a
new driver of export growth.
However, new variants of the coron-
avirus spreading rapidly will put the
economies and societies of many countries
at risk. Rising prices will also have an
effect, especially those for inputs in pro-
duction. Covid-19 has also affected maritime
% Free trade agreements (FTAs) con- and regulations in export markets con- transport, and there is a lingering shortage
tributed greatly to Vietnam’s export tributed to growth. Vietnam’s exports can of shipping containers.
turnover in 2021, especially the Com- now more readily access even the most In order to support and promote exports,
prehensive and Progressive Agreement fastidious markets around the world. MoIT has continued to work with associ-
for Trans-Pacific Partnership (CPTPP), ations to identify solutions to recover pro-
the EU-Vietnam FTA (EUVFTA), and % The export structure has been chang- duction and exports in the new circum-
the UK-Vietnam FTA (UKVFTA). Can ing in recent times. What does this mean stances. These solutions will be synchro-
you give us more details about the results? for Vietnam’s exports? nized with those from the government to
Our main export markets have been Figures show that exports by the man- recover the economy, with the main target
strongly affected by Covid-19 since it first ufacturing and processing sector last year being to accompany businesses and quickly
broke out in early 2020, but export turnover totaled $289.1 billion, an increase of 20.1 resolve issues to speed up the recovery.
has continued to post high levels of growth. per cent compared to 2020 and accounting The ministry will also introduce other
This is due to exporters accessing new for 86.2 per cent of all export turnover. solutions to support businesses that we have
markets, especially those with which Viet- The export of phones of all types and their been focusing on in recent times, such as
nam has signed an FTA. components reached $57.4 billion, up 12.2 promoting exports, diversifying export mar-
For example, as of November, Vietnam’s per cent compared to 2020, which were kets, and helping business access incentives
export turnover to the EU during 2021 followed in terms of turnover by electronic in FTAs such as the CPTPP, the EUVFTA,
came in at $36 billion, an increase of 12.6 goods, computers and components, and and the UKVFTA to boost exports.
per cent year-on-year, while export turnover machinery, instruments, and accessories. We also monitor fluctuations in the
to the UK and Northern Ireland was $5.2 The growth of technology products con- domestic and global economy to assess
billion, up 15.6 per cent, and to Canada, firms that key exports are changing, because the effects on production and foreign trade,
Mexico, and Peru up 18.2 per cent, 44.6 our main export items were previously in order to promptly make appropriate
per cent, and 79.2 per cent, respectively. garments, footwear, and minerals. This adjustments, and also innovate online
After a year of implementing the shift is suitable with the Strategy of Imports trade promotions to replace traditional
EUVFTA, Vietnam’s total export turnover and Exports for the 2011-2020 Period and activities, improve the capacity of the busi-
to the bloc reached $38.5 billion. Vision to 2030, as well as the strategy to ness community to use trade promotions
The government’s efforts in opening restructure main export industries. in the digital environment, and support
up markets and conducting bilateral and The decline in the proportion of agri- digital transformation in trade promotions
multilateral negotiations to clarify standards culture, forestry, and fisheries exports and to suit the new circumstances. %

18 | VIETNAM ECONOMIC TIMES | MARCH 2022 www.en.vneconomy.vn