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Vietnam calls for trade promos to boost economy
The Government has called on key export sectors to strengthen promotional activities to penetrate new markets and expand exports.
Exports play a major role in the country’s economic growth but are also an early casualty in case of recession. In this scenario, the Government has implemented several measures over the last few months, including slashing export tariffs and interest rate cuts and providing interest rate subsidies to help exporters cut costs.
With demand in traditional markets like the US, the EU and Japan falling because of the recession, exporters are seeking new markets like the Middle East, Africa, Latin America and Australia that are relatively unscathed by the economic crisis.
But to get a foothold there, they need to organise exhibitions, trade fairs and market surveys.
According to Le Quoc An, chairman of the Vietnam Garment and Textile Association, exporters and business associations fully understand the importance of trade promotion but lack the funds for it.
The Government earmarked VND63 billion (US$3.6 million) for trade promotion in the first quarter, An said, while the garment and textile sector alone required at least VND50 billion.
The Vietnam Fruit and Vegetable and Footwear associations have asked the Trade Promotion Department for funding to support promotional programmes.
The Ministry of Industry and Trade (MoIT) has set an export target of US$71 billion this year, a 13 percent year-on-year increase. However, MoIT Deputy Minister Le Duong Quang said the target would be difficult to achieve because of the fallout of the economic crisis.
Exports fetched US$3.8 billion in January, 18.6 percent less than the previous month and 24.2 percent down from the same period last year, according to the General Statistics Office (GSO).
The fall was caused by a drop in global prices of goods.
In January, the price of 23 out of 25 exported items fell sharply. Crude oil was down 57.7 percent from a year ago, rubber 43 percent, and pepper 20 percent, according to the GSO.
VietNamNet, VNS
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