Vietnam is working to bolster its key products to China. (Photo: VNA) Hanoi (VNA) – Reform of administrative procedures to facilitate origincertification granting, customs procedures and related process is recommendedby experts in order to increase export to China, a potential market withconsiderable risks.
Statistics from the Ministry of Industry and Trade showed that for the past 14years, China has been the largest trade partner and second largest exportmarket of Vietnam. Vietnam is also the 8th biggest trade partner andthe biggest one in the ASEAN bloc of China.
Two-way trade in 2017 reached 93.7 billion USD, up 30.2 percent from theprevious year. The figure is expected to hit 100 billion USD in 2018.
Itis noteworthy that Vietnam’s trade deficit with China declined at an average16.1 percent a year in 2016-2017, and 15.5 percent in the first quarter of thisyear.
However, experts said that there are many unpredictable risks in the Chinesemarket, citing an example that Chinese traders do not use payment throughletters of credit (L/C) like in other foreign countries. Vietnamese exportersalso face risks when many Chinese firms just make a deposit of 30 percent ofthe contract value.
As Vietnam’s import-export activities rely heavily on the Chinese market,domestic businesses will face challenges when there is a change in tradepolicies or protectionism in the neighbouring country.
Thus, regular technical guidance should be given to export companies so thatthey can fully benefit from the ASEAN-China Free Trade Agreement (ACFTA), andthe ASEAN-Hong Kong Free Trade Agreement (AHKFTA).
A set of measures to support the exporters in market information, capital andexchange rates should be mapped out. Meanwhile, relevant authorities mustcomplete import-export management mechanisms, and work to prevent cross-border smugglingand boost sustainable exports.
Local firms must make their own efforts as well. It is necessary for them toupdate market information, new regulations on product quality and consumers’taste in different Chinese localities.
They should give priority to improve capacity and enhance trade promotionactivities in China. Copyrights and trade brands must receive due attention.
The Ministry of Industry and Trade said it will join hand with relevantministries and branches to increase popularisation on the contents of theACFTA, World Trade Organisation (WTO) commitments and agreements between thetwo countries.-VNA
VNA
