Gia Lai Province's Trade Sector Focuses on Developing both Domestic Market and Exports

10:51:19 AM | 25/1/2006

In the 15 years of renovation process (1985-2000), the Gia Lai Trade Sector shifted from the centralization mechanism into the market economy. Companies in the sector step by step adapted to the new mechanism. However, the consumption power of people in the period was still limited and production in remote areas was developed slowly. The trade sector, therefore, had to provide goods such as salt, oil and fertilizer to people in remote areas.
In 2000-2005, the trading and service market in Gia Lai has become more hustling and busily developed. Commodities in circulation have increased from years to years with plentiful products. Total retail sales in 2004 increased by 1.5 times more than in 2001. The average retail sale growth was 12 per cent in the 2001-2005 period. The proportion of trade and service in 2004 accounted for 27.31 per cent of the province's GDP. The trading network was expanded with bigger volume of goods. Besides, the sector still paid attention to provide goods to people in remote areas, contributing actively to the socio-economic development in the province.
Gia Lai's imports and exports have been expanded to the international market, such as Europe and the America. However, the province still gained small import-export turnover. Total trade turnover in 2001-2003 fell by 20-30 per cent over the previous years. In 2004, export activities became more active with export turnover rising by 62.4 per cent on-year, but also reaching $39,234, equivalent to 78.47 per cent of the annual plan. In 2005, export turnover is expected to reach $42 million, or 82 per cent of the annual plan.
The main reason for the fall in exports is the decline in the prices of coffee, which is the main export of the province. Meanwhile, other export products have low productivity. Some enterprises became bankruptcy, while some others were unfamiliar to new markets. Furthermore, most of the enterprises in the province are small and medium-scale ones, lack of competitiveness in the international market.
To integrate fully into the international market, the Gai Lai Trade and Tourism Department has mapped out the development plan for the future. Accordingly, the sector will have to fully tap advantages of potential, human resources and the creativeness of enterprises. In 2006-1010 period, the sector will focus on developing the domestic market, ensuring smooth goods circulation and balance of supply and demand, changing production structures to generate commodities for export.
The sector targets to earn total retail sales of VND6.15 trillion by 2010, with average growth of 15 per cent. Total export turnover in next five year is expected to see annual growth of 21 per cent to reach $465 million, with $60 million in 2006 and increasing to $130 million in 2010. The sector will strengthen market management to instruct economic components to do business in accordance with law, which will restrain trade fraud and tax evasion.
Gia Lai plans to take such synchronous measures as expanding consumption markets for farmers, planning specialized areas for production, maintaining products after harvest, and building close relations between farmers and businesses. It will foster advertising, building trademarks and trade promotion. The province will maintain its current export markets while producing key products for export such as coffee, latex, processed wood, pepper, and cassava. Some potential products will be supported for export, including manioc, corn and granite tiles.
The province will concentrate on developing the economic complex at Duc Co border gate into an international border gate. This will be a key point for the provinces in the central highlands and the central coastal regions to boost the exchange of goods between Gia Lai and Cambodia.