Decision No. 2471/QD-TTg dated December 28, 2011 of the Prime Minster approving the goods import and export strategy for the 2011-2020 period, with orientations toward 2030

THE PRIME MINISTER

Decision No. 2471/QD-TTg of December 28, 2011, approving the goods import and export strategy for the 2011-2020 period, with orientations toward 2030

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the 2011-2020 socio-economic development strategy;

At the proposal of the Minister of Industry and Trade in Report No. 11031/TTr-BCT of November 28, 2011,

DECIDES:

Article 1. To approve the goods import and export strategy for the 2011-2020 period, with orientations toward 2030 (below referred to as the strategy), with the following principal contents:

1. Strategic viewpoints

a/ To develop production for quickly increasing exports while meeting domestic demand; to tap comparative advantages of the economy, raising the effectiveness and competitiveness of imports and exports and restructuring the economy toward industrialization and modernization, employment generation and trade balance;

b/ To build and consolidate strategic partners for developing sustainable markets; to harmoniously combine short-term and long-term national interests, economic and political-external relation interests, to engage in international economic integration in a proactive, independent and self-reliant manner;

c/ To diversify import and export markets. To actively and proactively participate in the global production network and value chain; to attach importance to producing and developing high added-value goods with brand names on domestic and overseas markets.

2. Development objectives

a/ General objectives

Total goods export value by 2020 will increase more than 3 times over 2010, bringing the average level per capita to over USD 2,000, and achieving trade balance;

b/ Specific objectives

- The average goods export growth rate will be 11-12%/year during 2011-2020, 12%/year during 2011-2015 and 11%/year during 2016-2020. To maintain the growth rate at 10% during 2021-2030;

- The import growth rate will be lower than the export growth rate; the average goods import growth rate will be 10-11%/year during 2011-2020, below 11%/year during 2011-2015 and below 10%/year during 2016-2020;

- To gradually reduce trade deficit and keep it at under 10% of the export value by 2015 and achieve trade balance by 2020; to achieve trade surplus during 2021-2030.

3. Export orientations

a/ General orientations

- To develop export both extensively and intensively toward sustainable and reasonable growth, expanding export scale while attaching importance to increasing export value;

- To restructure exports in a rational manner toward industrialization and modernization, focusing on quickly increasing the proportions of high added-value export products, deeply processed products, hi-tech products and environment-friendly products in the export structure.

b/ Development orientations for different commodity groups

- Group of fuels and minerals (abundant in natural resources but limited in supply sources): To adopt a roadmap for incrementally reducing the export of crude ores, investing in technologies to increase the export of processed products and make use of favorable market and price opportunities to increase export value. The directed share of this group in the export structure will be 4.4% by 2020, down from 11.2% in 2010;

- Group of agricultural, forest and fishery products (with long-term advantages and competitiveness but still low added value): To increase productivity, quality and added value; to restructure exports strongly toward deep processing and developing exports with advanced scientific and technological applications. The directed share of this group in the export structure will be 13.5% by 2020, down from 21.2% in 2010;

- Group of processed and manufactured industrial products (with development potential and global market demand): To develop hi-tech and high gray-matter products; to develop support industries, increase the ratio of domestic value, reduce dependence on imported materials and accessories. The directed share of this group in the export structure will be 62.9% by 2020, up from 40.1% in 2010;

- New group (included in the group of other goods): To scrutinize new goods items with still low value but high growth potential in the coming time in order to adopt their development incentives and make a breakthrough in their export. The directed share of this group in the export structure will be 19.2% by 2020, down from 12% in 2010;

c/ Market development orientations

- To diversify export markets; to strengthen and expand the shares of Vietnamese goods in traditional markets; to make a breakthrough in expanding new potential export markets;

- To bring into play Vietnam’s role and position in international and regional organizations, and intensify economic diplomacy in order to expand export markets; to develop the system of trade promotion agencies in major and potential markets; to better protect Vietnamese goods and enterprises in regional and global markets;

- To make full use of foreign market openings and tariff reduction roadmaps in order to boost export and increase the effectiveness of the export of Vietnamese goods into the markets with which Vietnam has signed FTAs;

- To build and incrementally develop the system of distribution of Vietnamese goods in overseas markets;

- Directed market structure by 2020: Asia will account for about 46%; Europe, about 20%; America, about 25%; Oceania, about 4%; and Africa, about 5%.

4. Import orientations

- To proactively adjust the growth of import while developing production of materials, raw materials and accessories to serve export-oriented industries, meeting domestic demand and developing support industries, closely controlling the import of goods items discouraged from import, helping reduce the trade deficit in the long term.

- To meet the demand for imported machines, equipment and high technologies suitable to domestic resources and production level and save energies and supplies; to stabilize imports for industries using materials, raw materials and supplies which are still exploited or produced inefficiently or with adverse environmental impacts in the country.

- To diversify import markets and narrow the trade deficits with relevant markets.

5. Strategy implementation solutions

a/ Production development and economic restructuring

- Industrial manufacture development:

+ To further renew technologies and increase the productivity of industries with large export earnings, such as mechanical engineering, wood furniture, textiles and garments and footwear; to develop the production of exports with potential, high growth rate and added value like building materials and petrochemical, rubber and hi-tech products.

+ To provide incentives for the development of and investment in support industries with a view to meeting domestic demand and participating in global supply chains in such industries as mechanical engineering, electronics-informatics, auto parts, textiles and garments, footwear and high technologies.

+ To promote development of centers supplying raw materials and accessories as key suppliers for textile and garment, footwear, wood furniture, plastic, electronic and mechanical enterprises.

+ To adopt policies to assist enterprises in tackling environmental problems arising in their production according to international commitments.

- Agricultural production development

+ To further finalize the master plan on development of agricultural commodity lines with competitive edge, for directing enterprises to increase investment in these commodity lines.

+ To adopt policies and measures to reorganize agriculture, forestry and fisheries along the line of combining workforce and production tools to facilitate the application of science, technique and new technologies and varieties to production. To reduce intermediaries in the supply of materials and equipment for production and in the distribution of products.

+ To elaborate standards and regulations on agricultural, forest and fishery products for export in order to raise their quality and effectiveness and protect the reputation and brands of Vietnamese goods.

+ To adopt mechanisms and policies to encourage combination of the development of raw-material zones with the production, processing and export of agricultural, forest and fishery products. To deploy programs on cooperation and alignment among localities across the country to develop raw-material zones; and to align production and processing within each locality to serve export.

+ To proactively work out appropriate measures to address trade protectionism in all forms in general and against Vietnamese agricultural, forest and fishery products in particular.

b/ Market development

- To step up bilateral and multilateral negotiations to expand outlet markets for Vietnamese goods; to review domestic mechanisms and policies as well as international commitments to ensure consistency in the process of realizing the country’s commitments.

- To review, negotiate and sign new agreements and supplement signed agreements on compatibility and mutual recognition of product quality, facilitating favorable and stable circulation of exports.

- To effectively and synchronously organize activities of information and forecasting about domestic and overseas goods markets and laws, policies and commercial practices of overseas markets in order to assist enterprises in raising their competitiveness and effectively entering into these markets.

- To renew the organization and increase the operation of overseas trade bureaus and trade promotion agencies, while raising the effectiveness of trade promotion activities toward focusing on developing new exports with competitive edge and without market restrictions or with potential markets; to boost the building and protection of the brands of export goods and products in key export markets.

- To encourage the overseas Vietnamese communities to engage in placing Vietnamese goods into the distribution systems of importing countries.

- To speed up the building of commercial infrastructure facilities in border-gate areas; to provide and update information on markets and border trade mechanisms and policies of neighboring countries; to direct enterprises to import and export goods through international and major border gates in order to ensure stability and avoid risks in border trade.

c/ Policies on finance, credit and investment in the development of export production

- To prioritize credit loans for the development of production, agriculture, export and support industries;

- To revise investment attraction policies to strongly attract domestic and foreign investment in export production;

- To step up export credit insurance activities to insure risks for export enterprises; to facilitate the borrowing of loans from credit institutions in order to increase quantities of exports and accessibility to international markets;

- To flexibly administer monetary and foreign exchange management policies in order to stabilize the macro economy and harmoniously balancing export requirement and import demand.

d/ Investment in the development of forwarding and warehousing infrastructure facilities and quick socialization of logistics services

- To review, invest in and upgrade transport infrastructure works, fairways and channels, warehouses and storage yards at seaports and customs clearance sites for imports and exports;

- To develop policies to develop logistics services; to attract investment in developing technical infrastructure for logistics services and their provision capacity.

e/ Human resource training and development

- To renovate the human resource training system along the line of associating training with development requirements and objectives of each commodity line and turning out quality and skilled human resources, first of all for textile and garment, footwear, wood furniture and plastic, electronic and mechanical industries;

- To diversify forms of cooperation in human resource training toward aligning training institutions with enterprises, step by step providing training in response to requirements of the business community;

- To add mechanisms and policies to support enterprises and commodity line associations to invest and participate in training human resources for manufacturing and export-oriented industries.

f/ Import control

- To increase investment effectiveness and competitiveness of Vietnamese products; to introduce more incentives for investment in the production of goods to meet domestic demand and limit investment in non-production sectors; to intensify investment in the production of goods in which Vietnam has competitive edge;

- To negotiate and agree on governmental-level trade exchange with a view to reasonably improve trade balance with trade partners suitable to domestic demand and production level and international commitments;

- To intensify domestic trade promotion in order to link enterprises manufacturing machines, equipment, supplies, raw materials and accessories with users of these machines, equipment and goods; to adopt a mechanism  requiring the use of locally made supplies and goods in bids for state budget-funded projects;

- To promulgate technical regulations on goods in compliance with international commitments to control import of goods of inferior quality affecting the environment and people’s health;

- To increase import control measures in compliance with international commitments and principles of the World Trade Organization.

g/ Raising of competitiveness of enterprises and the role of commodity line associations

- To concentrate resources on renewing technologies, improving product designs and diversifying products, increasing the quality of products and creating products of international quality for export, while attaching importance to producing new products to meet domestic demand;

- To apply corporate governance models and food quality, hygiene and safety control models to production and business activities with a view to increasing production and business effectiveness and product quality;

- To realize alignment and cooperation to increase product quality and competitiveness in the market;

- To diversify export markets to avoid business risks and tap new potential markets. To diversify payment currencies and prevent exchange rate risks in import and export activities;

- To reorganize information and trade promotion activities of commodity line associations. To promote their role of connecting members and representing and protecting their interests in international trade. These associations shall effectively perform their assigned tasks according to law.

6. Organization of implementation

a/ Pursuant to the objectives, orientations and solution groups of the strategy approved under this Decision, the commodity line development strategy and related national programs, the Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with other ministries, sectors, localities and commodity line associations in, elaborating action programs in implementation of the strategy, and specifying the contents of their respective tasks, completion time and implementation resources; then submit them to the Prime Minister for approval in the first quarter of 2012;

b/ Pursuant to the objectives and orientations of the strategy and the action program in implementation of this strategy, the Ministry of Industry and Trade shall guide other ministries, sectors and provincial-level People’s Committees in elaborating action programs in implementation of the strategy according to their respective functions and powers; and annually send reports to the Ministry of Industry and Trade;

c/ The Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with related ministries and sectors and provincial-level People’s Committees in, examining and evaluating the implementation of the strategy, and shall report to the Prime Minister at the year-end regular government meeting.

Article 2. This Decision takes effect on the date of its signing.

Article 3. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees and commodity line associations shall implement this Decision.-

Prime Minister
NGUYEN TAN DUNG