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VN exports rely too much on FDI sector

VN exports rely too much on FDI sector

Saturday, April 13, 2013, 11:09 GMT+7

Vietnamese exports grew nearly 20 percent in the first quarter of this year, but the achievement is mostly contributed by the foreign-invested sector, the Ministry of Industry and Trade said at a conference in Ho Chi Minh City on Friday.

Exports in Q1/2013 stood at US$29.7 billion, up by 19.7 percent compared to the same period last year, according to the ministry.

Processing industry is the commodity that posted the highest growth in the first three months, accounting for 68.7 percent of the total export turnovers. The sector exported $20.4 billion worth of products in Q1, a 30 percent year-on-year increase.

The impressive growth, however, mostly came from the FDI sector, Deputy Minister Tran Tuan Anh said.

Specifically, FDI businesses accounted for 100 percent of the camera exports, 98 percent of mobile phones and parts, 96.5 percent of computer and parts, and 93 percent of transportation means.

Samsung, the world’s leading mobile phone maker, also helped making cell phone become the commodity with the largest export turnover -- $4.49 billion, up by as much as 90 percent from the same period last year.

Meanwhile, the country’s traditional export staples, including agricultural products, minerals, and fuel, posted slower growth and declined export turnovers. Agricultural exports dropped 3.2 percentage points, accounting for only 15.9 percent of the total turnovers.

Seafood exports meanwhile declined by 7 percent compared to the same period last year, according to Truong Dinh Hoe, general secretary of the Vietnam Seafood Exporters and Processors Association.

Seafood exports stood at some $1.2 billion as many commodities such as catfish and frozen shrimp have recently been challenged in their main exporting markets, Hoe said.

“Catfish was subject to higher anti-dumping taxes, while frozen shrimp faced antibiotic tests in Japan and South Korea,” he elaborated.

However, many agricultural associations said exports may recover in the coming time as export prices have been nearly bottomed.

Duong Ngoc Minh, CEO of Hung Vuong JSC, a catfish exporter, said catfish exports to the US may grow 20 percent in volume and 15 percent in value in April compared to March because “the US market has run out of stock.”

Truong Thanh Phong, chairman of the Vietnam Food Association, also said the global demand for Vietnamese rice will only grow in June.

“Vietnam will then be able to sell at higher prices,” he said, adding that Vietnam has recently won a bid to supply 187,000 tons of 25 percent broken rice to the Philippines at considerably high prices.

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