Vietnam's export support measures in the period 2009-2010

181.11 million tons in 2007 (an increase of 97% in 6 years). It is forecasted that this volume of goods will increase to 218 million tons in 2010, more than double in 2015, and reach 854 million tons in 2020. Although the volume of containers passing through Vietnamese ports is increasing rapidly, in the import-export business community and logistics experts, it is believed that Vietnamese goods are loaded and unloaded twice. If they are exported, they are loaded and unloaded once at a Vietnamese port, then transported by small container ships to a regional transit port, usually Singapore, loaded and unloaded a second time onto large container ships, and then released to the world. The trend of increasingly large container ships to reduce shipping costs is said to have a negative impact on Vietnam's import and export of goods, as domestic seaport infrastructure has not yet been invested in keeping up with this development. We lack deep-water ports that allow large containers to pass through.

- 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 to strive to reduce the time for customs procedures for Vietnam's import and export goods to the average level of the ASEAN region by 2010 through the increased application of measures to conduct electronic customs, one-stop customs...

- Early implementation of signing agreements on international payment via banks with some of Vietnam's export markets that are currently facing difficulties in transactions and payment guarantees such as China, Russia and Middle Eastern and African countries; at the same time, signing bilateral agreements and mutual recognition on plant quarantine, food hygiene and safety standards, especially with key export markets such as the United States, Japan, Korea, Singapore, Australia, New Zealand. to facilitate export enterprises in payment as well as meeting standards on

Plant quarantine, food hygiene and safety, especially for agricultural and aquatic products.

- The Ministries of Science and Technology and Agriculture and Rural Development negotiate and sign new agreements on conformity and mutual recognition of export products, first of all for agricultural and food products, creating conditions for Vietnamese goods to be exported to foreign markets.

Maybe you are interested!

2.1.2. Solutions to improve the financial, credit and investment policy system serving export

- About credit policy:

Innovate credit policy towards eliminating subsidies, implementing the principle of market-based interest rates but ensuring the following functions:

+ Providing credit to small and medium enterprises, enterprises exporting high-risk products with longer repayment periods and more favorable capital access conditions.

+ Guarantee for export enterprises to borrow capital from commercial banks.

+ Credit for importers.

- Regarding tax policy:

+ Guide and organize the effective implementation of tax refund policies for raw material importers to supply domestic export manufacturers.

+ Reduce 30% of income tax payable in the fourth quarter of 2008 and corporate income tax payable in 2009 for income from production and business activities of small and medium enterprises.

+ Extend the deadline for paying corporate income tax for 9 months for the corporate income tax payable in 2009 of enterprises.

small and medium enterprises and enterprises engaged in production and processing of agricultural, forestry, aquatic products, textiles, footwear, and electronic components.

+ Temporarily refund 90% of input VAT on actually exported goods in case the enterprise does not have payment documents and refund the remaining 10% when payment documents are available.

+ Adjust and reduce import tax rates for some groups of goods that are input materials for production, which are not yet produced domestically or are produced but cannot meet demand to create conditions for businesses to reduce costs and improve competitiveness.

+ Extend the tax payment grace period for some industries in accordance with the production and consumption cycle (shipbuilding, mechanical manufacturing, etc.). Flexibly implement the policy on import tax payment grace period (from 275 days to 365 days) for imported goods and raw materials for export production.

- On monetary policy:

+ There are specific measures to facilitate increased access to credit capital for enterprises, especially small and medium enterprises; for production and export business, enterprises facing difficulties in product consumption such as: continuing to reduce lending interest rates according to market signals; reducing required reserves of credit institutions; reducing the base interest rate to below 10% by the end of December 2008.

+ Guide credit institutions to provide loans at agreed interest rates as prescribed in Resolution No. 23/2008/QH12.

+ Continue to restructure debt terms and apply solutions to handle bank loans in accordance with legal regulations for farmers and businesses facing difficulties.

+ Operate monetary policy flexibly and effectively; flexibly adjust foreign exchange rates towards encouraging exports and controlling imports.

Direct commercial banks to adjust interest rates on loan contracts down to current interest rates; do not impose overdue penalties on small and medium-sized enterprises facing difficulties.

- On investment policy:

+ Continue to promote investment incentive policies, in which the policy of encouraging investment in developing export production needs to be implemented more thoroughly and consistently.

+ Incentive policies for domestic enterprises must be equal to or higher than those for foreign invested enterprises.

+ Focused investment in export-oriented manufacturing industries

+ Reasonable development of industrial parks and export processing zones

2.1.3. Solutions to improve the effectiveness of export promotion work

+ Innovate the operation method and organization of management and use of the Economic Diplomacy Fund to promote the effectiveness of this Fund in export promotion support activities by transferring the management of this Fund from the Ministry of Foreign Affairs to the Ministry of Trade, avoiding the current situation where trade promotion workers are often passive trade counselors. On that basis, every year the Ministry of Trade will assign tasks to Vietnamese trade offices abroad to develop export promotion programs to local markets and report to the Ambassador for approval of this program before reporting to the Ministry of Trade to synthesize and allocate common funds to markets each year.

+ 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 media channels such as CNN, BBC, The Economist...

+ Further promote high-level trade promotion activities to boost 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 promotion activities through supporting the organization of delegations...

+ Proactively inviting foreign importers to trade at trade promotion events in Vietnam is one of the new forms that the Trade Promotion Agency, Ministry of Industry and Trade is proposing to boost exports.

2.1.4. Solutions to support human resource training and development for some export manufacturing industries

"People are the decisive factor for the success of a business", therefore, training human resources to serve the export production activities of each industry is very necessary and needs to be built strategically:

- Organize vocational training programs to solve the problem of shortage and improve the quality of labor resources in some export production industries that are facing difficulties in labor resources such as textile and garment production, leather and footwear, wood products, and plastic products. In addition, the government can coordinate with banks to lend money to workers to learn a trade, to move towards socializing vocational training every year.

- Perfecting the State's mechanisms, policies and laws in the field of labor and employment to enhance care and protect the interests of workers, improve income and living conditions for workers.

2.1.5. Solutions to forecast and promote exports by industry

The lessons of poor forecasting are the driving force for the Government to continuously strengthen and closely monitor the work of forecasting and early warning of export situations by each industry. Although there are many agencies for forecasting and analyzing the economy, this work has not been really given due importance, has not been organized tightly and effectively, and lacks an appropriate mechanism to seek the opinions of independent experts.

In addition, the Ministry of Industry and Trade or agencies performing forecasting work need to be more responsible when making assessments and predictions for exports. In particular, it is necessary to enhance the responsibility of the head of the ministry for the information provided by that ministry.

2.2. On the business side

Exporting enterprises are those who directly stand on the international trade front, so enterprises need to promptly take advantage of favorable conditions from the State to boost production, innovate organizational activities to improve the quality and efficiency of production and business activities. Some recommendations given to exporting enterprises in the coming time are:

2.2.1. Solutions to build and strengthen relationships with raw material suppliers for production

- Ministries perform their state ownership functions to direct large-scale state-owned enterprises with a position in the market such as the Fruit and Vegetable Corporation, the Coffee Corporation, etc. to develop plans to link with raw material producers to produce export goods, ensuring stable quality and supply of raw materials for production. On that basis, it will promote enterprises of other economic sectors to build links with farmers.

- Export manufacturing enterprises in the fields of textiles, footwear, and wooden furniture, including foreign-invested enterprises, proactively develop projects to build raw material centers to receive loans from the Development Bank to build these centers.

2.2.2. Solutions to improve the quality of business operations

- Enterprises need to actively implement the application of corporate governance models and quality management models in production and business organization to improve production and business efficiency and export product quality.

- Innovate human resource management in enterprises, especially small and medium enterprises, to standardize recruitment, evaluation and employment activities in these enterprises to improve the ability to meet labor standards and conditions set by importers.

- Effectively exploit the benefits of information technology and promote the application of e-commerce to expand market access opportunities, quickly grasp customer needs, save transaction and advertising costs, thereby improving production and business efficiency.

- Improve understanding of international trade law to be ready to deal with trade disputes in foreign markets as well as proactively request the Government to take measures when foreign partners engage in unfair competition in the Vietnamese market (dumping, subsidies).

- Increase the use of production and business support services such as consulting services, market research and exploration services, legal services... to improve the quality, efficiency and professionalism in production and business activities of enterprises, especially small and medium enterprises.

2.3. Solutions for each industry

2.3.1 Some solutions for the aquaculture industry

Some difficulties for the seafood export industry:

- The main difficulty today is that countries are applying trade protectionism, technical barriers, strict quarantine and regularly issuing new, more stringent standards on antibiotic residues and food safety and hygiene.

- Lack of domestic raw materials for export production while import tax is high at 10-20%, most seafood processing factories can only operate at about 70% capacity due to lack of raw materials for processing.

- Access to loans from banks and preferential loans is difficult.

- There is a shortage of raw materials for production while import taxes on raw materials are high, and there is no close connection between production and processing areas.

- Besides, seafood exporting enterprises also have to face weaknesses in marketing, using the internet for marketing as well as management team, labor force meeting the qualifications...

Some solutions:

- Maintain the current growth rate of the fisheries industry on the basis of strengthening factors to ensure sustainable development such as: resource regeneration, safety for fishermen, gradually adjusting the fishing structure, reducing coastal exploitation, and developing offshore fishing.

- Offshore fishing is a correct direction, however, implementation needs to be more cautious. Recently, the Offshore Fishing Investment Project (ODF) using preferential credit capital is a correct policy of the Party and State, invested in for a long time (from 1997-2003). However, initial inspection results show that:

Vietnam's export support measures in the period 2009-2010 - 12

Comment