Kien Giang Province Actively Promotes Trade during Int'l Integration

In recent years, Kien Giang Province has focused on making trade an important economic sector of the province. This can be seen in the expansion of export markets, the diversification of products, and the improvement of enterprise competitiveness as Vietnam integrates into the world economy. In 2006, the commercial sector’s GDP rose 12.75 per cent and contributed 26.7 per cent to the overall GDP of the province.

 

Ms Mai Ngoc Thanh, Director of Kien Giang Department of Trade, said domestic trade developed in all three areas; urban, rural and island. The infrastructure system for the trade sector has been invested in, and gradually upgraded and modernized. To date, the province has 166 markets, including three specialised wholesale markets for aquatics, farm products and food. Several big distributors and retailers from Ho Chi Minh City and regional provinces, such as Citimart, Co.op Mart, and G7 Mart, have expanded their sales networks to Kien Giang. Besides, department stores and specialised shops have been opened, from urban areas to the countryside, with various types of goods.

Export activities are being expanded in both market size and turnover. So far, commodities from Kien Giang have reached 34 nations and territories worldwide. Each year, companies in the province extend their business to three or four markets. Notably, Kien Giang exported 586,000 tonnes of rice in 2006, becoming the largest rice exporter in Mekong Delta region. Aquatic products are also a strategic export of the province. However, with new technical barriers from importing nations, the export earnings increased only 8.83 per cent year on year to US$240.33 million.

 

The development of the Kien Giang trade sector was mainly based on the increasing business community. As of late 2006, Kien Giang had 823 enterprises and 4,000 business households. The rapid development of the non-state-run economic sector quickened the circulation of goods in the province. The shrinking state-run economic sector still holds the backbone role in purchasing, processing and exporting farm and aquatic products. The state-run trading sector is holding 35.64 per cent of rice market share and 25 per cent of aquatic output. State-run enterprises contributed 76 per cent of local export revenues.

 

To increase integration capacity, the commercial sector of Kien Giang Province has built and developed trademarks for various unique local products. Additionally, Kien Giang also takes full advantage of 40 types of commodities from Cambodia, free of tariffs, to boost trade with this country, especially via Ha Tien Border Gate Economic Zone. The province also concentrates on expanding export aquatic processing factories in Tac Cau industrial zone, encourages investment further developing strong local products like rice and fruits, and is studying the development of export-oriented commodities like handicraft items.

 

To edge up enterprise competitiveness, the trade authorities periodically provide information on relevant legal issues, market movements, technical barriers, trade disputes and tax cut roadmaps.

 

Retail: VND14,400 billion, up 16.3 per cent against 2006

Export revenues: US$300 million, up 24.6 per cent

Including US$130 million from seafood and US$156 million from agricultural commodities; and 600,000 tonnes of rice 

Import revenues: US$37.5 million, up 25 per cent. Main imports are materials, machinery, equipment for fishing and aquaculture.