Garment production for exports in Hoa Tho Textile and Garment Company (Photo: VNA)

Hanoi (VNA) - Vietnam targets ten percent export growth in 2016, said Deputy Minister of Industry and Trade Tran Tuan Anh during a teleconference on December 31.

This means revenue from outbound shipments will reach 178 billion USD next year, while trade deficit will be kept at under 5 percent.

It plans to boost exports of processed/manufactured products, key staples and goods with high added value or notable earnings, while restricting the import of luxuries and commodities that can be made domestically.

According to the deputy minister, in 2015, Vietnam shipped approximately 162.4 billion USD worth of products overseas, an annual increase of 8.1 percent. The processing-manufacturing sector and foreign-invested enterprises contributed significantly to the revenue growth.

Meanwhile, falling price and quantity reduction of agricultural produce and minerals have negatively affected 2015’s export turnover.

The country imported 165.6 billion USD worth of commodities, up 12 percent from 2014.

A major part of imports are production materials, reflecting the considerable proportion of outsourcing in the domestic economy and the reliance on foreign suppliers, which has resulted in increasing production costs and inferior competitiveness of locally made products.

Trade deficit was well controlled at two percent of export revenue equaling 3.17 billion USD.

The Ministry of Industry and Trade (MoIT) also aims for a growth rate of between 9-10 percent in industrial production index and a 12 percent increase in retails and services in 2016.

Reviewing the industrial production index, Deputy Minister Anh pointed to its impressive growth of 9.8 percent, representing two percentage points higher than the yearly target. The processed/manufactured unit posted the highest growth at 10.6 percent.

Integration into the global economy was a highlight of 2015. Vietnam signed free trade agreements (FTAs) with the Eurasian Economic Union and the Republic of Korea while concluding negotiations of the Trans-Pacific Partnership agreement and an FTA with the European Union. Consequently, Vietnam has entered into FTAs with 55 economies worldwide, including 17 out of 20 G20 countries and all seven G7 countries.

Chaired the function, Prime Minister Nguyen Tan Dung urged the trade-industry sector to make full use of advantages and opportunities brought about by the global economic integration in order to expand export market.

At the same time, he underscored the domestic market which has great potential with more than 90 million people.

He also requested the MoIT to continue with restructuring for improved quality and competitiveness of the sector, with special attention paid to State-owned enterprises, among other tasks.-VNA