market, technological innovation, support for areas with difficult socio-economic conditions, and information provision. At the same time, it is necessary to reform tax policies in the direction of increasing revenue from economic development, shifting revenue sources mainly from indirect taxes to direct taxes. Ensure the nurturing of fair, unified, simple, and convenient revenue sources for all business entities. Widely apply the mechanism of "self-declaration, self-payment, and self-responsibility" to all business entities.
Continue to innovate monetary policy and the operations of the State Bank. Flexibly use interest rate and exchange rate tools to ensure the value of money, control inflation, ensure financial security for the financial system, banks and credit institutions against exchange rate and interest rate shocks from outside.
The State continues to strengthen and focus on investment in economic and social infrastructure, ensuring the combination of progressive economic growth and social equity, and sustainable development. Promote the attraction of foreign investment capital, effectively use official development assistance and capital in the fields of infrastructure, human resource training, poverty reduction, institutional strengthening and environmental protection. In addition, the State needs to expand investment abroad by economic organizations, focusing on areas where Vietnam has advantages to ensure national energy security and provide raw materials for domestic production.
Regarding the improvement of the trade environment and towards the completion of the foreign trade development target for the period 2006-2010, from the reality of foreign trade activities over the past year, the following recommendations can be made:
- Reduce transaction and business costs for foreign trade enterprises through:
Maybe you are interested!
-
Improving the effectiveness of credit risk management at the Bank for Agriculture and Rural Development - Hanoi Branch - 2 -
Improving credit quality at Joint Stock Commercial Bank for Foreign Trade of Vietnam in the integration process - 30 -
The Training and Development Program for Leadership Staff Has Not Really Contributed to Improving the Effectiveness of Strategic Thinking to Meet Requirements -
Improving the effectiveness of Can Tho Insurance Company's business strategy - 1 -
Improving State Management Capacity for Tourism Market, Tourists and Propaganda and Promotion of Hanoi Tourism
+) Deploy the construction of raw material supply centers, especially in some fields such as textile and footwear production... to reduce
import volume thereby reducing import costs for businesses, while taking advantage of domestic resources.
+) Develop and implement a program to modernize and reform customs procedures, a roadmap to shorten the time for customs procedures for import and export goods.
+) Continue to promote administrative reform along with enhancing cooperation and coordination to resolve related cases between ministries and branches.
+) Early implementation of signing bilateral agreements and mutual recognition on plant quarantine, food hygiene and safety standards, especially in key export markets such as the United States, Japan, Korea, Singapore, Australia, Newziland... This solution aims to avoid businesses encountering non-tariff barriers when exporting to a certain market.
- Perfecting the financial, credit and investment policy system to serve exports.
+) Establish an export insurance fund. After Vietnam joined the WTO, direct support forms for exports such as export bonuses were abolished. Therefore, it is necessary to use this capital source and add more to establish an investment support fund, to research, renovate, transfer technology, improve skills for workers producing export goods.
+) Regulating exchange rates and inflation. The role of macro management is to regulate reasonable exchange rate changes so as to attract foreign investment capital, encourage businesses to invest towards promoting exports, limiting imports to serve economic growth while still controlling inflation at a reasonable level.
- Develop import-export projects for each product and each locality. Pay special attention to developing new products and products with production conditions that do not depend much on market fluctuations such as mechanical products, electric cables, plastic products, wood products, etc. At the same time, review the policy mechanism to encourage export production for traditional products.
key markets such as agricultural, forestry and fishery products, textiles, footwear, handicrafts, etc. to make appropriate adjustments to support production and export. Continue to consider ASEAN, Japan, the United States, the EU, China and countries sharing borders as key markets.
- For industry associations: Enhance the role of associations in providing information, unifying the implementation of production development strategies, business linkages, negotiating and signing contracts, avoiding customers taking advantage of price pressure causing common damage. There needs to be a coordination mechanism between management ministries and industry associations to create unity in direction and operation.
3.3.1.2. Improve the effectiveness of trade promotion (XTTM)
It can be affirmed that trade promotion activities in the recent past have played an important role in promoting and maintaining the rapid and stable growth rate of Vietnam's foreign trade industry. In the coming time, we need to promote trade promotion activities to stimulate exports and domestic trade. Trade promotion helps products become competitive and businesses sell their goods domestically and internationally. Trade promotion activities in the past few years have focused on key products and markets through the development and implementation of key national trade promotion programs, consultation mechanisms, and coordination of activities between trade promotion organizations. The key national trade promotion program has contributed to gathering resources in the direction of creating a comprehensive scale and focusing on supporting businesses to closely follow key products and markets to increase the competitiveness of goods and businesses. In order to create a position for Vietnamese goods and services in the process of integration into regional and international markets, affirming businesses and products in domestic and foreign markets, programs to build and promote brands are being implemented.
Brands need to focus on building and protecting their brands systematically to limit the trend-following.
The professionalism in Vietnam's trade promotion activities needs to be further improved. We need to promote trade promotion activities in the direction of both continuing to strengthen the systematic strength and improving the level of specialization of trade promotion activities, focusing on depth so that trade promotion activities are effective. For this activity to have solid and strong development steps, the government needs to build a long-term strategy in developing trade promotion in many aspects, in order to mobilize maximum resources for this activity. The Trade Promotion Department has the role of organizing and managing trade promotion activities, building and coordinating the supervision of key national trade promotion programs. That role needs to be enhanced in terms of operational efficiency, especially in the field of export, in promotional activities, fairs and exhibitions. An equally important task is to promote training in decentralized management in trade promotion to create a qualitative change in this activity.
From the situation over the past year, in the coming time we need to pay special attention to the following issues:
- Focus the state's trade promotion activities on organizing major programs to promote the national image, especially to large import markets, import markets with great potential for Vietnamese goods through major international television channels such as: CNN, BBC, The Economist... Major programs that need attention include:
+) The program supports providing information to businesses. The goal of this program is, first of all, to ensure that businesses can quickly access directly and update economic legal documents of organizations of which Vietnam is a member. At the same time, it provides information of a forecasting and directional nature about the market and business products.
This requires state agencies and trade promotion organizations to fundamentally innovate the way they access and process information.
+) The program supports businesses in research and development (R&D) such as market analysis, new product design, building standards for evaluation... to serve the expansion of the market, product development, and finding partners of the business. This is a very necessary requirement of the business, but due to limited financial capacity and resources, businesses cannot do it themselves.
+) Comprehensive promotion program on trade, investment, services, tourism, culture to effectively link trade promotion activities with industries and fields associated with promoting the image of the country, people, and Vietnamese products in key and potential markets.
- Further promote high-level trade promotion activities to promote cooperation, investment and trade between Vietnam and other countries, attract multinational corporations to invest in Vietnam, thereby creating waves of investment shifts to Vietnam in export production sectors with great potential.
- Innovate the organization of trade promotion programs by focusing on organizing and providing market information, reducing small-scale market survey programs, and enhancing trade promotion activities through supporting foreign investment delegations in Vietnam.
- In the measures to innovate the trade promotion system, it is necessary to focus on clearly distinguishing the functions and tasks of organizations in the system, in which government trade promotion organizations focus mainly on performing the function of state management of trade promotion, building legal frameworks, policy mechanisms to preside over national trade promotion projects and programs, and proposing to participate in the management of the National Trade Promotion - Investment Fund. Non-governmental trade promotion organizations and business associations play the role of directly organizing trade promotion activities, investing in supporting businesses.
organizations in specific sectors and industries, which they represent and participate in proposing the implementation of national trade promotion programs as “subcontractors to the government”.
3.3.1.3. Measures to prevent dumping risks for Vietnamese export goods
After joining the WTO, the risk of anti-dumping lawsuits against Vietnamese exports is increasing. Of course, as a WTO member, Vietnam can use the WTO dispute settlement mechanism to combat the abuse of anti-dumping measures by trading partners. However, this is only a short-term measure because Vietnamese participants do not have enough financial resources. Therefore, Vietnam needs to proactively rely on its own policies to proactively limit the risk of being imposed anti-dumping measures, starting with trade policy. The status of a “market economy” allows foreign anti-dumping investigators to use price estimates to estimate domestic prices and costs of Vietnamese exports to conclude whether there is dumping or not. These estimates make it much easier to prove the existence of dumping, and increase the dumping margin compared to the case of market economies. Therefore, the first countermeasure that Vietnam needs to take is to quickly reform its trade and industrial policies to be recognized as a “market economy” by partner countries as soon as possible. Because anti-dumping investigators will automatically examine the “market economy” status for Vietnamese exporters that satisfy the following 3 conditions:
Firstly , Vietnam's most-favored-nation tariff on a related product is at a moderate level (for example < 10%).
Second , Vietnamese authorities do not impose “key grey zone measures” on relevant products.
Third , state-owned monopoly distributors must not be involved in the distribution of product categories (domestic or foreign) similar to those involved.
Therefore, in the coming time, applying moderate and synchronous tax schedules to reduce price distortions in the domestic market will contribute to significantly reducing the possibility of being sued for dumping. Of course, another effective measure, but not easy to implement, is to upgrade the structure of export goods, avoiding focusing too much on goods that are easily sued such as textiles, seafood, leather and footwear, etc. As long as Vietnam still focuses on exporting the above-mentioned goods, the risk of being sued for anti-dumping will still exist. In the years immediately after joining the WTO, because the structure of production and export cannot immediately have significant changes, if trade policy does not have major improvements in the above-mentioned direction, Vietnam needs to anticipate and be ready to face new lawsuits. Vietnamese exporters also need to clearly realize that Vietnam's exports will be less at risk of being sued for dumping if we also actively open our market in accordance with our commitments to the WTO.
3.3.1.4. Propose policies to focus on developing exports of key goods and services.
As a member of the WTO, Vietnam's export goods and services will face more difficulties, mainly because direct government subsidies will have to be limited. Therefore, the structure of Vietnam's export goods and services must change based on the government's orientation and comparative advantages, the world market's demand and the trend of production shifting between regions in the world. Accordingly, by 2010, there should be policies focusing on developing key goods and services. For the group of industrial and processed goods, it is necessary to focus on increasing the export turnover of the following items:
Electronic and computer products are a group of products that can be produced on a large scale, taking advantage of abundant human resources, with low production costs but meeting the requirements of the industry to serve exports. The product structure in this group also needs to focus on sophisticated products with high added value and export value such as: Electronic chips, liquid crystal displays, plasma TVs, etc. To produce these products, projects must have large investment capital and modern machinery and equipment.
Textiles, footwear and leather products are Vietnamese products that can fulfill orders requiring high levels of sophistication. Therefore, the structure of this group of products needs to shift to the design stage, FOB unit prices, and develop domestic raw material production projects to reduce costs and improve the competitiveness of export products. In this group of products, it is necessary to develop furniture, briefcases, handbags and other household items.
For processed foods, it is necessary to focus on solving some basic limitations of the industry, such as processing technology, PR and marketing, for products, and one of the solutions is to attract more foreign investors to produce and process export products.
Software products are very diverse and rich, from designing microchips, standardized application software packages to business production software... In order to quickly increase the export turnover of this product, it is necessary to improve some limitations such as foreign languages and internationalization level of programmers.
For handicrafts, in the short and medium term, choosing to produce and export these items is one of the optimal choices for our country. Therefore, the design stage needs to catch up with market demand.