If the Vietnamese Government and businesses take advantage of the opportunities afforded by WTO membership, and overcome the challenges this status presents, the country will likely have an export turnover of US$100 billion in the next four or five years, said a trade official.

Deputy Minister of Trade Luong Van Tu made the comments at the Forum on Export Promotion of Viet Nam held in Ha Noi on April 6.

The forum was part of the 17th Viet Nam International Trade Fair (Vietnam Expo 2007) organised to introduce and discuss regulations and market challenges Vietnamese products will face under the WTO.

The WTO membership brings opportunities for export enterprises to penetrate the global market, Tu said. However, he also noted businesses should be aware of possible trade barriers like anti-dumping disputes and technical requirements.

Tu emphasised the importance of trade promotion activities, explaining they played an important role in Viet Nam’s nearly $40 billion export industry last year.

He stated the trade ministry will intensify assistance for export enterprises to avoid possible trade barriers and disputes and ensure the industry’s sustainable growth.

Le Dang Doanh, economic advisor at the Ministry of Planning and Investment (MPI), addressed the conference and stressed Vietnamese exports face fierce competition from neighbouring countries, especially China. He said Vietnamese businesses should not consider decreasing the price of goods as the best way to compete because it could lead to anti-dumping disputes and lost profits.

"Vietnamese enterprises should not directly compete with established Chinese products and, instead, should find an untapped or niche market," said Doanh.

Tran Huu Huynh, head of the Legal Department under the Viet Nam Chamber of Commerce and Industry, said the State’s export supervision mechanism, which is "open" and "flexible", will play a positive role in helping the industry face challenges like trade barriers and disputes.

Huynh Buu Quang from HSBC made a speech at the forum and introduced the bank’s financial assisting services for export businesses including Supply Chain Solutions, Purchase Order Payment Solutions and Enhanced Trade Advances.

In addition to the forum, nine economic co-operative contracts and a memorandum of understanding were signed at the fair.

The combined value of the contracts is US$100 million, most of which involve agricultural, garment and textile products.

The first $40 million contract was signed between Viet Tien Garment Corporation and Prominent Eurpo Ltd & Itochu USA LLC.

The second contract was signed by Thang Long Garments Joint-Stock Company and Danish Kwintet worth $1.2 million.

Tu said the total value of the contracts agreed to during the fair reached $500 million. The largest by far was a deal inked by Viet Nam and China’s Yunnan Province worth more than $400 million.

Source: Asian News Network