EU Ambassador Sean Doyle has recently introduced Green Book 2010 in Hanoi and said that he was glad to witness the vigorous recovery of Vietnam economy after the economic recession and proud to announce that EU continues to be important strategic partner of Vietnam in all areas: trade, economic, political and cultural. The Report of EU Commercial Counselors or Green Book 2010 confirmed EU as first ranking partner of Vietnam in trade and investment in 2009, the second biggest export market of Vietnam, the second biggest investor (in implemented FDI) in spite of adverse economic impacts from outside.
Green Book 2010 described how Vietnam could successfully overcome the economic crisis though whose adverse impact had been reduced due to government’s measures will continue in 2010. “Vietnamese government deserves the praise for the successful economic picture in 2009 and early 2010. In the conditions of world economic crisis and trade reduction, Vietnam maintains the GDP growth rate and though reduced, export maintains above the average of the region due to bold measures taken by the government”, Mr. Sean Doyle said.
However, the report also pointed out weaknesses of the economy revealed in the crisis and the need for fast restructuring, especially regarding State-owned enterprises, so as to ensure stable growth and increased competitiveness. Increasing State budget deficit, return of inflation and trade deficit are the challenges that Vietnam confronted in 2009 and will continue to face in 2010.
The Report also shares the views of other analysis that Vietnam has missed the opportunity to restructure the public sector where exist the decrease of production, reduction export and less jobs compared to private sector and FDI enterprises in 2009. While stimulus measures were necessary to maintain growth, they went too far to offer privileges to less competitive State-owned enterprises, creating inflation pressure in 2010 and coming years.
According to Green Book 2010, one of direct challenges to trade is trade deficit of US$12.2 billion caused by decreased export (-9.7 % according to Vietnam General Department of Statistics). Meanwhile, Green Book 2010 considers that the lower world prices also contributed to the export deficit in 2009. One of the recommendations of the Green Book is that instead of importing consumers’ goods, Vietnamese government should support the establishment of local supply chains for export-oriented industries.
Compared to other partners, trade relations with EU is affected only at an average rate (caused by crisis) with Vietnamese export (to EU) decreased by 14.4 % and import (from EU) increased 2.2 14.4 % and import (from EU) increased 2.2cent. The US remains the second biggest market of Vietnamese products consuming some 20.4 % of Vietnamese products in 2009. It confirms the strong trade relations between EU and Vietnam.
EU continues to be the most important market of Vietnamese footwear and aquatic products with footwear import value of US$1.9 billion and aquatic products of US$1.1 billion. EU remains the second biggest importer of Vietnamese garment (US$1.7 billion, or 3.1 % less than previous year).
Vietnam continues to gain trade surplus of Euro3.77 billion in two-way trade with EU. In fact, trade relations with EU have contributed to the reduction of Vietnam trade deficit. In reality, Vietnam trade deficit is mostly due to trade deficit with China: among US$12.2 billion of Vietnam trade deficit in 2009, US$11.3 was from trade deficit with China.
Green Book pointed out the absence of local supply chain (as a result, Vietnam had to import big amount of machinery and materials worth 90 % of import value) continues to be the main challenge in trade deficit and related issues (such as shortage of foreign currencies, budget deficit and fluctuation of exchange rates)
The Book also includes detailed analysis on legal environment as well as development of main industries such as garment, footwear, aquatic products, pharmaceuticals, banking, etc.
2010 Report of EU Counselors or Green Book 2010 is an annual publication of EU Delegation and Embassies of EU members in Vietnam. It presented in-depth analysis on Vietnam economy and trade in 2009 and Quarter I of 2010 as well as views on main industries of Vietnam economy.
Mai Ngoc
Vietnamese
