Tools of Foreign Trade Policy.

Nearly 80% of import turnover comes from Asian countries ( of which 28 - 30% comes from ASEAN countries). In ASEAN, the main import market is Singapore (in 2002, the proportion in total import turnover was 15.5%). In Asian countries outside ASEAN, the main import markets are Japan, Taiwan, Korea, China (with a proportion of 10 - 13%). The markets of European, American, and Oceanian countries have a low proportion, while countries with high turnover are only around 2% (Germany 2.44%, Russia 2.3%, America 2.5%, Australia 1.66% - 2002 data). With the above import market structure, access to advanced technological equipment from industrial countries with source industries has been limited, which has affected the acceleration of the industrialization and modernization process of the country. (Results

are given in table 7 - appendix).

2.2.3. Product policy.

+ Export commodity policy : With the policy of diversifying export commodities combined with preferential tax incentives on loans, credit... Many measures have been deployed and applied flexibly to suit each commodity of our country. All commodity policies are issued, supplemented or amended on the principle of effectively exploiting the comparative advantages of each commodity, increasing the proportion of processed goods to create products with high competitiveness in the world market. Decree 57/1998/ND-CP and Decree 46/ND-CP on the management of export and import of goods in the period 2001 - 2005, the following are some policies and measures that have been

implemented for each of Vietnam's key export items.

Policies and measures to promote some key export products of Vietnam.

Item

Policies and measures to promote exports

Rice

- Gradually increase rice export outlets

- The Government has policies and timely measures to promote rice export:

+ Government-level agreement on rice export

+ Accept barter for a specific country

- Diversify rice export forms

Thing

- Planning cashew growing areas to ensure stable source of raw materials

- Maintain good breeds (breeding) and invest in intensive farming

- Applying modern processing technology to the production and business of cashew exports, increasing the competitiveness of cashew products.

Coffee

- Take advantage of Vietnam's high-yield coffee

- Have timely policies when coffee products are strongly affected by world market prices.

- Actively invest in processing and classification equipment, gradually increasing the proportion of high-quality coffee.

- Have timely policies to overcome the situation of buying, competing for sales, and forcing prices.

coffee growers and producers by implementing the focal regime.

Rubber

- Rubber planning is given top priority by the Government.

- Improve processing equipment to increase the added value of rubber products.

Aquatic, Seafood

- Increase the proportion of processed aquatic and seafood products

- Investing in the direction of stabilizing input materials for processing export goods

Textiles

- Focus on processing to take advantage of cheap labor resources with a market

stable output

- Diversify garment products

Shoes

- Take advantage of young, skilled labor force that quickly grasps new technology.

- Attracting foreign investment capital to improve competitiveness

of the industry, inheriting potential markets

Maybe you are interested!

Row

electronics and computer components

- Transferring modern technology and continuously investing in a number of areas where Vietnam has competitive advantages:

- Take advantage of young, fast-learning labor resources and continuously invest in a number of areas where Vietnam has competitive advantages:

- Utilizing cheap, fast-learning labor is one of the goals.

target development of electronics and software industry.

Handicrafts

- Take advantage of labor in craft villages

- Low investment capital, easy to utilize production facilities

- Take advantage of domestic raw materials

- Policy mechanisms are gradually aiming to encourage the development of handicrafts (Decree 51/1999/CD-CP)

- The handicraft product policy has taken advantage of the export market.

the mouth is wide open

Source: Author compiled from documents of the Institute of Trade Research - Ministry of Trade {5}

With specific policies and measures for each item in the process of economic innovation, Vietnam's export policy has achieved the following results:

- There are fundamental changes in key export products.

The export commodity policy in recent times has partly shown a strong direction and created all conditions to promote the production of commodities in which Vietnam has advantages. On the one hand, the Government has proposed a series of policies to support production and investment in order to fully exploit the comparative advantages of the commodities that Vietnam is exporting. On the other hand, it has actively developed industries that can take advantage of foreign investment capital or joint ventures with domestic enterprises to produce new export commodities such as crude oil, electronics, etc.

Diversify export products: With the motto of consolidating and developing traditional industries: from agricultural products with strengths such as rice, cashew, rubber, tea, etc., to developing some products that we

have advantages in the world market such as pepper, coffee, seafood, at the same time take advantage of and exploit abundant, relatively cheap, skillful labor resources to develop the garment, footwear, electronics industries, restore some traditional craft villages with the principle of inheritance combined with modernity to bring the handicraft industry to be present and initially gain a position in the world market.

Thus, in the process of "diversifying export products", Vietnam has a policy of developing key export products. Implementing this policy, first of all, expand the range of products and then on that basis, select and develop better key export products. In 1991, there were 10 key products in

Of which, there are 4 items with export turnover of over 100 million USD, including crude oil, seafood, rice, textiles; the item with the highest export turnover is crude oil, reaching 581 million USD/year. Up to now, the number of main export categories is 17 items, an increase of 7 new items: peanuts, coal, electronics - computers and imported components, handicrafts, vegetables, wood products, seafood. Of which, the main export items have 4 items with export turnover of over 1.5 billion USD/year: seafood, footwear, textiles, crude oil and 3 other items reaching approximately 400 million to 700 million USD/year such as rice, coffee, computers and electrical - electronic components. The remaining items besides peanuts and tea

all achieved turnover of over 100 million USD. (Specific results are shown in table 4)

– photo.)

According to the experience of foreign trade development of some Asian countries , the main export items of each country often focus on high priority for developing from 7 to 10 main export items. From this practice, Vietnam has determined the number of main export items ranging from 10 to 15 items. With this number of main export items, Vietnam can overcome disadvantages when the world market fluctuates and also open up possibilities to increase production scale when the world market is favorable. At

It is possible to choose one or several key export products to focus on large-scale production, taking advantage of opportunities and favorable conditions of the world market.

The structure of export goods has shifted in a positive direction: Vietnam has gone from simply exporting some unprocessed raw materials such as coal, tin, round wood... and some simple handicraft products, the types of exported goods have now become more diverse, including items with high export value, ranking second or third in the world, such as rice and coffee. Raw materials in 1991 accounted for over 92% of total export turnover, now it is about 60%; Processed and deeply processed goods (including manufactured goods) in 1991 accounted for only about 8%, in 1999 it was about 40% of total export turnover.

The structure of agricultural, forestry and fishery products in 1991 accounted for 53% of total turnover, by 1999 it was down to about 32.0%, and by 2002 it was about 31.0%, in 2003 this proportion was 36%. The group of small-scale industrial and handicraft products in 1991 accounted for 47%, in 1999 it increased to 68.0%, in 2002 it was 69% and in 2003 it decreased to 64%. (Specific results are shown in Table 8 of the Appendix).

- The quality of exported goods has increased significantly, initially gaining a position in the world market.

The quality of exported goods has been improved, initially creating competitiveness for Vietnamese goods in the world market, while also having a positive impact on the quality of domestic products. Currently, rice, crude oil, seafood, garments, footwear, coffee, cashew nuts, pepper, etc. are exported and Vietnam has been recognized as meeting international quality standards. Domestic manufacturers have focused on

Investing in technological innovation, thanks to which product quality has been improved quite quickly, many domestic products have quality not inferior to foreign products such as cement, sugar, steel, bicycles, electric fans, thermos, light bulbs... However, product prices are still high so competitiveness with imported goods is still limited.

Vietnamese exports have initially established a position in the world market. In recent years, some export items with high annual growth rates are footwear, electronics, cashew nuts, pepper, tea, rice, etc. Some items

The main exports that have a certain influence on the regional and world markets are rice, the second largest export in the world after Thailand, cashew nuts, the second largest export in the world after India , coffee, the third largest export in the world after Brazil and Colombia (if only counting robusta coffee, Vietnam is number 1 in the world), and pepper (2002).

world leader (surpassing India )

+ Import goods policy

The import commodity policy is based on the management of import commodities mainly related to the major balances of the national economy, including commodities such as gasoline, fertilizers and consumer goods, in addition to the list of goods prohibited from import and export, the list of goods managed by quotas, the list of consumer goods requiring import restrictions, etc. It not only meets the needs of equipment, machinery, supplies, raw materials and essential consumer goods for production, business and life, protects rare resources, but also ensures the development of the country's economy. The import commodity policy has achieved the following results:

- Import structure is improved in a positive direction.

Imports of machinery and equipment accounted for 21.8% of total import turnover in 1991, increased to 25.7% in 1995, 30.6% in 2000, 35% in 2002 and 36.1% in 2003.

Raw materials for production always account for the highest proportion, annually at over 60% of total import turnover.

Consumer goods decreased relatively in 1991, the proportion was 11.1% of total import turnover, in 1995 it increased to 15.2%, in 2000 it was 6.2%, in 2002 the turnover reached 180 million USD, accounting for about 2.5% of total import turnover, in 2003 the proportion was only 1.4%. (Specific results are shown in Table 9 - Appendix).

The change in the structure of imported goods has shown that the management and direction of import work has been and is going in the right direction, increasing the import of machinery, equipment and technology to carry out the industrialization and modernization process. Maintain a high proportion of imported raw materials to develop production and gradually reduce the proportion of imported goods.

The gradual reduction of the trade deficit in consumer goods exports has contributed to improving the trade balance. On the other hand, it also shows that the ability to self-supply domestically produced industrial consumer goods has improved.

2.2.4. Tools of foreign trade policy.

2.2.4.1. Customs duties.

The main reasons for the construction of Vietnam's import and export taxes are:

1). Protect scarce resources, limit the export of strategic goods;

2). Protect some domestic production industries; 3). Ensure revenue for the State budget;

4). Regulate consumption of luxury or influential goods

to social, cultural and national security aspects.

Law on export tax and import tax of our country issued on December 1987 and

almost entirely replaced by the Law on Export Tax and Import Tax,

passed by the National Assembly on December 26, 1991, marking the fundamental completion of the State's trade management mechanism by tariffs. The new tax law was

adjusted in accordance with international practices on tariff regimes, and at the same time more clearly demonstrated the State's protectionist policy. However, in the context of increasingly developing trade relations between Vietnam and other countries in the world, on January 1, 1999. The new Law on Import and Export Tax was issued, the structure of the tariff schedule and detailed commodity codes are 8 numbers according to the Harmonized Commodity Classification List of the International Customs Organization. The content of the new tariff schedule clearly demonstrates the principle of "restricting the import of domestically produced goods that are capable of meeting demand, reasonably protecting domestic production"...

Up to now, Vietnam has repeatedly revised the tax rate framework, revised and supplemented the export tax schedule, import tax schedule and revised the tax rate, export, import tax rate. All of these revisions have not been really stable and reliable for production and business activities. In addition, the lack of

Synchronization in tax structure, ineffective management system makes the system

Our country's taxes lack transparency. Only calculated within 4 years from April 1999

By April 2002, there had been 41 decisions by the Minister of Finance and a number of circulars related to amending the preferential tariff schedule (MFN) for many goods.

The diagram below shows that the distribution of tax lines between tax brackets in Vietnam's tariff schedule is that there are too many tax brackets and few items in each tax bracket.

Allocation of import and export taxes

Tax framework

Free shipping

1-5%

10-15%

20-25%

30%

40%

50%

>50%

0 5 10 15 20 25 30 35

Number of tax lines (% of total)

Source: Compiled from documents: Montague Lord (2002). Vietnam's export competitiveness: Linking trade policy and macroeconomic policy - Hanoi. {28}

With the innovation of Vietnam's import and export tax policy in recent years, the average tax rate has been reduced several times but is still high and the tax groups still reflect the high level of protection of the Government for domestic manufacturing industries. In the coming years, Vietnam will reduce high protection tariffs, replace and increase the use of taxes that the

Comment