Directive 22/2000/CT-TTg on the strategy of developing the export and import of commodities and services in the 2001-2010 period

DIRECTIVE

ON THE STRATEGY OF DEVELOPING THE EXPORT AND IMPORT OF COMMODITIES ANDSERVICES IN THE 2001-2010 PERIOD

Over the past ten years, export and import activities have recordedmany big achievements and reached the targets laid down in the Strategy of Socio-EconomicDevelopment in the 1991-2000 period.

Export value in the year 2000 may increase by more than 5.6 times thatin 1990 averaging 18.4% per year, contributing to the annual growth of GDP, helping theeconomy to overcome the period of crisis in the early 90 s. Export is being an importantoutlet for many economic branches, making an important contribution to theindustrialization and modernization of the country.

In preparation for the coming period, at its recent session in August2000, the Government discussed and made suggestions to the Draft Strategy of Developingthe Export and Import of Commodities and Services in the 2001-2010 period presented by theMinistry of Trade. Later, the Prime Minister held a meeting with enterprises in the wholecountry to discuss measures to promote export. In the appraisal of the Government, for allits many achievements, the import and export service, especially export, still show not afew weaknesses, chiefly because: economic development of our country remains low, thecompetitiveness of our goods is weak, the cost price of our products is high while theirquality is low, production has not kept close to market demands and has not relied on themarket to clear the way for production while market is the vital question of export; thepolicies and mechanisms of export and import have been reformed in a positive way inrecent years but are not yet stable; the ministries and branches have not taken theinitiative in removing difficulties and obstacles for the enterprises.

In order to finalize and carry out the Strategy of Developing theExport and Import of Commodities and Services in the 2001-2010 period and promote exportin the Coming period, the Prime Minister urges all ministries, branches, the People sCommittees of the provinces and centrally-run cities and enterprises engaged inexport-import production and business to firmly grasp the basic contents and promote thefollowing works:

1. The Strategy of Developing the Export and Import of Commodities andServices in the 2001- 2010 period, especially export, must be a strategy of all-roundacceleration in many fields, and must involve breakthroughs with firm steps. The objectiveof our actions in this period is to carry on the policy of giving the highest priority toexport; to create sources of quality goods with value added and high competitiveness forexport; to help solve the job problem for society, to create the source of foreignexchange reserve in order to meet the demands of industrialization and modernization ofthe country; to shorten rapidly the gap in economic development between our country andother countries in the region.

2. Export of commodities and services in the 2001-2010 period shallhave to grow by an average of 15% and more yearly and must meet the followingrequirements:

a/ The export structure must be changed vigorously in the direction ofincreasing processed and manufactured products with emphasis on the products with a hightechnology and grey matter content; at the same time, attention must be paid to theexploitation of those goods using chiefly raw materials and materials on the spot, andusing intensive labor required by the domestic as well as foreign markets. At the sametime, we have to exploit all sources of exportable goods; strive to achieve trade balanceby the years 2009-2010 and export surplus after the year 2001.

b/ To pay attention to raising the value of manufacture and quality ofeach export product; to reduce the export of roughly processed goods, increase the rate ofdeeply processed goods through new technologies; to reduce contractual manufacture,promote the production of export using high-quality raw materials and materials in thecountry requiring new technologies; to improve the infrastructures of breeding andplanting, to make use of plant varieties and animal breeds of high output and quality andappropriate processing technologies alone with measures of environmental protection; toadopt the planning of material areas for each group of products; the process of managingproduction must be reorganized scientifically and most economically; to step by step workout the national quality norms for export commodities under the trademark "Made inVietnam".

c/ Export products must meet the diversified requirements of the worldmarket, especially requirements in quality and designs. Each kind of goods must secure itsmain and prime markets and concentrate capabilities to broaden these markets, at the sametime take the initiative in expanding them to other markets in the direction ofmultilateralising and diversifying our trade relations. We must adopt concrete policytowards each market and step by step reduce export through intermediate markets. Thecommon orientation is to use all possibilities to maintain a rational export ratio intothe existing markets in Asia, especially the Japanese market, further step up our directexport to the markets with high purchasing power like the United States and WesternEurope; to penetrate and gradually increase our export ratio into the markets in EasternEurope, Russia, SNG, America and Africa.

Marketing and trade promotion are of great importance and must bedeveloped strongly with a view to creating a favorable international environment forexport. The programs of trade promotion and market expansion must be concretized andlinked with external relations activities, taking advantage of diplomatic activities tosupport the signing of framework treaties, agreements and long-term contracts of greatvalue with other countries, international organizations and big markets in order to securea stable outlet, from which to build a basis for investments to renovate technologies,raise the value of localization and the value added of exports.

Depending on their functions, the ministries, branches and overseasrepresentative offices of Vietnam must step up their external relations activities,increase their international cooperation in order to broaden the export market. Theassociations of business lines must play an active role in coordinating the efforts of theenterprises and assist them in intensifying the search for markets and customers; to buildand agree on programs of action aimed at protecting and raising the reputation as well asthe common interests of the associations, of each member and of the nation in thecompetition on the international market.

3. Import must be closely oriented; average growth of import in the2001-2010 period shall be maintained at 14%/year. Attention should be paid to the importof high-tech to meet the demands of the industries processing farm, forestry, aquatic andmarine products and producing light industry goods. At the same time, this must beassociated with the development and use of the technologies, plant seeds and animal breedsand materials newly adopted or produced in the country.

To restrict the import of quality products which have been produced inthe country and which have achieved national or international standards; to enhance theapproach to the markets supplying source technologies with great possibilities ofefficacious investment such as Western Europe, the United States and Japan.

The policies and mechanisms of controlling import in this period mustbe considered carefully so as to make them conform with the process of carrying out ourGovernment s commitments on international integration with international and regionalorganizations and other multilateral and bilateral commitments.

4. At present, the role and potential of the export service and foreignexchange service have not been adequately appraised. We must regard this as an exportpotential that needs to be promoted in the 2001-2010 period. Among these services, we mustpay attention to tourism, labor export, post and telecommunications, financial, bankingand insurance services, service of goods transportation by air, sea and railway... Theorientation for development of these domains should be reflected in concrete programs, inwhich attention should be paid to investing in the development of tourism in order to turntourism quickly into a spearhead economic branch.

5. To achieve the above-said objectives and requirements, the relatedministries and branches, the People s Committees of the provinces and centrally-run citiesshould adopt plans to coordinate with the Ministry of Trade and the Ministry of Planningand Investment in determining the structure of export goods and services of each branchand each locality as required by the market; on this basis, to build target exportprograms and projects together with the concrete capacity of production, policies andbusiness lines with concrete growth rates and the export markets, so that within a shortperiod we can create competitive export products.

The target programs and projects of export, after approval by thecompetent authorities and becoming operational, shall be given priority in the granting ofState credits and loans from the banks, shall enjoy preference in investment policies iftheir production and business prove effective.

The Ministry of Planning and Investment, the Ministry of Finance andthe State Bank of Vietnam should take the initiative in adopting plans to supply creditfunds to the programs and projects of production and export in the 2001-2010 period andnot let the lack of investments for the production of export goods occur.

6. Besides drawing up the above export programs, the Ministry of Tradeis assigned with the task of assuming the main responsibility and coordinating with theMinistry of Planning and Investment, the Ministry of Finance, the Ministry of Justice, theMinistry of Science, Technology and Environment, and the State Bank of Vietnam to reviseand finalize the concrete policies, mechanisms and measures to meet the demand of creatingsources of export goods and stepping up export. These policies and mechanisms must coverall aspects, land, investment, finance, credit... aimed at effectively assisting the abovetarget export programs, on the principle of ensuring preference to the domesticenterprises which produce and supply raw materials for the production of exports on thesame footing with the export producing enterprises. Priority in capital shall be given tothe establishment of the Export Support Credit Fund and deployment of its activities in2001 in order to eventually establish the Import-Export Bank before 2005.

In the immediate future, in the year 2000 and early 2001, attentionmust be focused on handling difficulties and obstacles mentioned by the enterprises in thedomains of customs, service, taxation and especially value added tax.

With a view to holding the initiative in international economicintegration, it is necessary to study and issue legal documents based on the principlesabout customs, environment, health safety and epidemiological hygiene, as well as theprinciples on bilateral trade agreement, assistance to the major goods production branchesin the country, especially agricultural production, with mechanisms against monopoly,against trade fraud and control of trade in border areas.

The Ministry of Trade and the relevant ministries and branches shallhave to report at the end of the first quarter of 2001 to the Prime Minister on concreteprograms of export and finalize the above said policies.