Export Sector Expected to Grow in 2007

Viet Nam’s export sector is forecast to grow steadily and rapidly this year. The total export turnover may reach US$46.8 billion, an increase of 17 percent over the previous year. Accompanying that growth, however, will be many challenges as the country becomes an official member of the World Trade Organization (WTO).

Viet Nam’s export sector is forecast to grow steadily and rapidly this year. The total export turnover may reach US$46.8 billion, an increase of 17 percent over the previous year. Accompanying that growth, however, will be many challenges as the country becomes an official member of the World Trade Organization (WTO). 

Export Sector Expected to Grow in 2007 ảnh 1
High-quality lacquer statues are among new products being exported to the U.S. this year

The Ministry of Trade predicts that the exportation of agriculture and forest products will continue to secure good profits. Export prices on coffee, pepper and rice will remain on the rise and rubber and cashews might bounce back slightly.

Rice, coffee and rubber will continue to be Viet Nam’s staple exports.

The industrial sector will also grow quickly in coming months thanks to various capital sources coming on line and an increase in foreign direct investment projects. Industrial markets will be opened to the world and new products will be developed.

Export of industrial products is forecast to reach US$22 billion, a year-on-year increase of 22 percent accounting for nearly half of the country’s total exports.

Good times, though, come with a price. On January 7, Viet Nam will become an official member of the WTO and must therefore live up to commitments made during accession negotiations. These include, among others, agreements on sanitary and phyto-sanitary measures, which will place financial and technical burdens on the country.

In addition, commercial barriers will be erected to Vietnamese products as they enter the global marketplace.
 
For example, five years after entering the WTO, China’s trade revenue has increased rapidly but this, in turn, has lead to an increase in international trade disputes.
 
In its latest report, the WTO said that China is involved in fully one-third of current international trade disputes - double the number compared to 2001 when China had just entered the WTO.
 
Similarly, thanks to the lifting of quota barriers, Viet Namese exports of garment and textile products are expected to reach US$6.5 billion this year, a 20 percent increase over the previous year but this fact alone may mean that exporters risk being drawn into anti-dumping lawsuits by the U.S.

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