New Scenario for National Trade Promotion Programme

 

This aspect has been tabled at a conference on “Trade promotion activities to boost northern export” held by the Ministry of Industry and Trade on June 9, 2009. The meeting gathered representatives from 28 trade promotion centres in 28 Northern provinces and cities.

Economic difficulty is the major cause to restructure the existing trade promotion model. In May, Vietnam’s export turnover fell 24.9 per cent year on year to US$4.4 billion. Before such a context, the Government and competent ministries and branches have adopted many measures to solve difficulties for enterprises, especially exporters. One of major activities is the national trade promotion.

 

To complete trade promotion activities, the Ministry of Industry and Trade and relevant ministries and branches proposed the Government adjust and supplement contents and criteria of the Decision No. 279/2005/QD-TTg on the national trade promotion programme. Then, the Prime Minister issued the Decision No. 80/2009/QD-TTg dated May 21, 2009 to approve of amendments and supplements to the regulations to construct and execute the National Trade Promotion Programme for the 2006-2010 period, which is set to take effect on July 15, 2009. This is seen the most active and practical move to solve difficulties for enterprises, seek outlets for local goods and boost export in the coming time.

 

Accordingly, the Decision 80 has widened participants of the National Trade Promotion Programme. Trade promoters will be funded when they join trade promotion programmes held by other entities. This reportedly facilitates trade promotion agencies of centrally governed provinces and cities and enterprises to take part in trade promotion programmes to boost consumption of their products and enhance competitiveness.

Mr Nguyen Thang Hai, Director of Trade Promotion Agency (Vietrade), said: The regulations to construct and execute the National Trade Promotion Programme for the 2006-2010 period (issued together with the Decision 279/2005/TTg and Decision No. 80/2009/QD- TTg dated May 21, 2009 of the Prime Minister), local trade promotion agencies have more opportunities to develop personnel and working capabilities of their staffs. They are funded 100 per cent of training costs. Vietrade and MoIT are submitting the budget for trade promotion activities to the Prime Minister for approval.

 

Mr Hai said the Government assigned the Minister of Industry and Trade to review centrally funded local trade promotion programmes. This is a good chance for localities with key exported goods to boost their capacities.

 

Regarding support contents, apart from old ones in the Decision 279/2005/QD-TTg, the Decision 80 added three new support models to suit the current trend. Business associations and local authorities lauded the supports for Vietnamese enterprises to meet with foreign importers entering Vietnam to seek deals.

 

Previously, we also only supported outward activities but now we financed inward activities as well. The Government will also organise export-oriented industry conferences in Vietnam and other activities to expand export markets and encourage Vietnamese enterprises to carry out trade promotion activities, seek export markets and boost domestic sales.

 

Additionally, the Decision 80 also upgrades the funding level. Accordingly, the financing level will be higher in some contents. For instance, the Government finances 100 per cent of training costs, instead of only 30 per cent previously. Or, the State funds 100 per cent of costs to invite international guests to Vietnam’s national trade promotion events, instead of previously 70 per cent. Remarkably, the National Trade Promotion Programme will fund business associations and enterprises to organise overseas business trips to expand export markets.

 

Deputy Minister of Industry and Trade, Nguyen Thanh Bien, said: The board of examiners will keep close watch on satisfaction of programme criteria to enhance programme quality, capacity and responsibility of beneficiary enterprises. Moreover, the board will tighten control over the effectiveness of centrally-funded project.

 

As one of five units with capital sources for trade promotion, with VND4.3 billion - the largest in the nation, Hanoi has carried out trade promotion activities very effectively. However, the use of the fund has not been clarified. Thus, the centre hopes to have a circular for the implementation of the National Trade Promotion Programme at the earliest.

Hung Yen province is now home to 2,000 enterprises but the province is capable of exporting cucumbers and pineapples to Russia. The province lacks concrete policies to ensure consumption markets for other products. Supporting finance is also a top concern that trade promoters in Hung Yen are very concerned.

 

A good human resource ensures effective trade promotion. Although all local trade promoters are university graduates, their foreign language and computer knowledge and skills are very weak. Thus, trade promotion activities usually encounter difficulties. The Vietnam Trade Promotion Agency has applied a long-time programme for trade promoters to follow training courses in Vietnam and other nations. Some localities even proposed to pay a half for training costs.

 

Lang Son is a northern border-sharing province. Trade promotion in the province is not as good as other localities because of availability of cheap Chinese commodities. Personnel at the Trade Promotion Centre are not strong enough to take all necessary work. Trade promotion depends on policies of the Government. Thus, the Vietnam Trade Promotion Agency needs to unify organisational structure to let the Lang Son Trade Promotion Centre stop promoting trade and tourism at the same time, but only trade.

 

Trade promotion centres need to join hands to better their operations. Apart from promoting trade, the centres should combine with investment, trade and tourism promotion activities. On the other hands, the personnel structure needs shuffle. Many centres have 5-7 staffs but there are two managers. Thus, the quality of local trade promotion activities is low.

 

With some 7,000 enterprises, in 2009, Thanh Hoa province will be granted VND1.4 billion for promoting trade. At present, the centre has plans to use half of this funding in the most effective manner while seeking measures to capitalise on the rest.