Ktetaichinh’s Blog

February 5, 2009

Economists tell exporters to play it smart

Filed under: Uncategorized — ktetaichinh @ 11:49 pm

Export firms should focus on medium-priced goods, diversify their products, find new markets, and improve quality this year, some eminent economists have advised

Dr Nguyen Quang A, director of the Institute of Development Studies , says with consumers tending to tighten their belts due to the global economic downturn, the luxury segment is likely to be hit.

So exporters should look at popular, especially essential items like foot wear, clothes and foodstuff, he adds.

Dr Le Dang Doanh, a member of the institute, says exporters have to scout for new markets like the Middle East, Africa, Latin America, and Australia which have been relatively unscathed by the economic crisis.

They need to be able to forecast

export trends, he adds.

Nguyen Minh Phong of Hanoi Institute for Socio-Economic Development, said the State Bank of Viet Nam (SBV) last year kept the Vietnamese currency strong, making Vietnamese exports more expensive than those of other countries.

But in recent months it has allowed the currency to weaken, he says.

The Viet Nam Association of Small and Medium-Sized Enterprises says the most important factor in resolving difficulties for the export sector is availability of credit.

The Ministry of Industry and Trade’s export target this year is 71 billion USD, a 13% year-on-year increase.

But its deputy minister Le Duong Quang has admitted the target will be difficult to achieve because of the impact of the global financial crisis on Vietnam ’s economy.

He says exports are expected to fall this year due to a drop in demand, and prices of goods slump.

The targets for some key export items like garment and textile, footwear, rice, and coffee have been raised and for agricultural, forestry, and fishery items, reduced.

In 2008, exports rose nearly 32% as against the initial target of 22-25%. (VNA)

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