Edging up Export Competitiveness

Dong Thap province made record export turnover in 2011 and this result boosted its GDP growth to 13.55 percent. But, not contented with what it has achieved, Dong Thap is applying more measures to support enterprises, expand export capacity, and enhance competitiveness of exports to lay the groundwork for future breakthrough growth.

 

In 2011, rice and aquatic products (particularly tra catfish) were key exports. Seafood was the biggest export with total shipment of 160,000 tonnes worth more than US$471.6 million, accounting for nearly 74 percent of the province’s exports. Rice export volume was 280,000 tonnes, earning more than US$133.1 million, contributing nearly 21 percent to the province’s export turnover. The sharp rise in the value of goods temporarily imported for re-export pushed up the export revenues to US$877.3 million in 2011, up 46.9 percent year on year and 74 percent higher than the target.

 

As global demand for rice is on the rise and export prices keep going up, Vietnamese rice is favourably shipped worldwide. Besides, local rice exporters actively seek export contracts to ensure stable markets. In 2011, the volume of exported rice reached 277,516 tonnes, worth US$133.1 million, up 8.3 percent in volume and 18.9 percent in value over 2010. The rice export earnings contribute 20.8 percent to the province’s total exports

The province also exported 6,428 tonnes of shrimp cakes, earning US$10.1 million, up 46.2 percent in volume and 72.1 percent in value compared with 2010. Garment export generated US$12.4 million, up 32.1 percent year on year.

 

The province now has more than 40 exporters shipping their products to 80 markets. Cross-border trade was boosted after the international border gates of Dinh Ba and Thuong Phuoc were connected with the Trans-Asia Road and roads crossing the Mekong River to reach Cambodia and beyond. Backbone enterprises, especially aquatic and agricultural product processors, have changed their business strategies and restructured business fields to be more focused. Particularly, aquatic product processors invested in material zones, processing facilities, by-product processing factories and other facilities; thus, they maintained annual growth of over 30 percent in 2011.

 

In 2012, exportation is forecast to confront numerous difficulties, especially agricultural and aquatic products - the local strengths. Meanwhile, most exports are still now simply processed; thus, the value and competitiveness remain quite low in comparison with full processing. Pham Thien Nghia, Director of Department of Industry and Trade, said: The most important issues are to diversify product categories, lower prices, produce in large volume and ensure quality as committed to importers. Accordingly, to improve export capacity and edge up the competitiveness of exports, the industry and trade sector of Dong Thap will adopt many important solutions. In the near term, the sector will encourage and facilitate enterprises to diversify products, manufacture more fully processed products and higher valued products like prepared foods. At the same time, the province will actively support enterprises to renovate equipment and machinery to modernise production, improve quality, reduce costs and enhance competitiveness.

 

Apart from giving priority to new product development, Dong Thap will also gradually complete its traffic systems, especially container terminals, to help businesses save time and reduce transportation costs.