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INTRODUCTION
1. The necessity of researching the topic
The Europe in general and the Eastern Europe in particular in 2016 experienced
many unstable events that directly affected the economic recovery of the whole area.
The continuous terrorism occurred in France, Germany, Belgium; the biggest
migration crisis since the World War II had made EU security the safest in the world
disordered. Brexit, referendum in Italy, Syrian war, Russian – Ukraine tensions also
negatively impact on economic growth, free trade in Europe.
For Eastern European countries, the export turnover of Vietnam to the countries
increased from 698.6 million USD in 2007 to 1488.7 million USD in 2011 and up to
5743.2 million USD in 2016. In particular, the export turnover to Slovakia increased
from 82.1 million USD in 2007 to 297.6 million USD in 2011 and up to 3197.5 million
USD in 2016; the export turnover to Poland increased from 375.4 million USD in 2007
to 779.7 million USD in 2011 and up to 1650 million USD in 2016. The Czech Republic
increased from 198.2 million USD in 2007 to 375.4 million USD in 2011 and up to 771.5
million USD in 2016. And Hungarian market reached 51.9 million USD in 2007 and
down to 36 million USD in 2011 and up to 124.3 million USD in 2016.
The import turnover of Vietnam from the Eastern European countries increased
from 168.5 million USD in 2007 to 310.9 million USD in 2011 and up to 445.7
million USD in 2016. In particular, the import turnover from Poland increased from
68.3 million USD in 2007 to 130.3 million USD in 2011 and up to 236 million USD
in 2016; the import turnover from The Czech Republic decreased from 65.9 million
USD in 2007 to 44.9 million USD in 2011 and increased to 93.3 million USD in 2016.
Slovakia increased from 2.9 million USD in 2007 to 13.9 million USD in 2011 and up
to 40.5 million USD in 2016. And Hungarian market reached 31.5 million USD in
2007 to 45.6 million USD in 2011 and up to 76.1 million USD in 2016.
The above figures show that Vietnam is exporting surplus to the Visegrad.
The countries have great demand for importing products which is the export
strength of Vietnam such as: textile and garment, footwear, wooden furniture and
agricultural products such as coffee and pepper…However, the import turnover of
Vietnam from the countries is too little, which does not take advantage of the
countries’ flourished industry.
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Vietnam has made great efforts to increase its export turnover. However, the
export of Vietnam is still fragmented, low quality, lower price than the competitive
goods of the same type, so export growth is not sustainable. There are many reasons,
including reasons caused by export improvement policies and solutions for each
region and market not really effective. Specifically: (1) Market development policies
and commodity items have not really contributed to boosting the export of goods to
the markets of Eastern European countries. (2) Tax policy has not really contributed
to promote the export of goods to enterprises in general and export to the market of
Eastern European countries in particular. (3) Trade promotion policies, although
more favorable than the tax, credit, exchange rate policies,...in supporting enterprises
promote the export of goods of enterprises, but still limited processing. (4) Export
insurance services and the capacity of insurance companies in Vietnam are still
limited. Existing export insurance activities are still dominated mainly by foreign
importers designated by importers and participating in export insurance. (5) The
policy of developing infrastructure for export and human resource development has
not really promoted effectively the export of goods. (6) In addition, trade facilitation
policies are still relatively inadequate, causing considerable difficulties for businesses
and a significant impact on export promotion in general and exports to The market in
some Eastern European countries in particular, such as: tax declaration time is still
too long; Customs clearance still many points "entangled",...
In order to have a theoretical and practical basis in implementing effectively the
export improvement measures of Vietnam in the coming time in general and export to
the market area of The Czech Republic, Slovakia, Hungary and Poland in the Group
Visegrad in particular, the author selected the thesis “Solutions to promote the export
of Vietnamese goods to the selected of Eastern European countries”.
2. Objectives and research tasks of the thesis
Objectives: study and propose solutions to boost the export of Vietnam’s goods
to the markets of some Eastern European countries by 2025 with a vision to 2030.
Specific tasks: (1) Clarify some theoretical issues on promoting the export of
goods to a country; (2) Study the experience of some countries on solutions to
promote the export goods to Visegrad Group markets and draw lessons for Vietnam in
boosting to export Vietnam’s goods to the countries; (3) Assess the situation of
measures to promote the export of Vietnam’s goods to a country to some Eastern
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European countries in the period of 2011 – 2016; draw the advantages and main
achievements; disadvantages and reasons; (4) Proposing opinions, orientation and
some key solutions to enhance the export of Vietnam’s products to some Eastern
European countries by 2025 with a vision to 2030.
3. Research objects and scope of the thesis
3.1. Research objects of the thesis: export and promote the export of
Vietnam’s goods.
3.2. Research scope of the thesis: (1) regarding space: study export and enhance
the export of Vietnam’s goods to some Eastern European countries, namely: The
Czech Republic, Slovakia, Hungary and Poland. (2) Regarding time: the current
status of exports and the promotion the export of Vietnam’s goods to selected Eastern
European countries in the period of 2011 – 2016, propose measures to boost
Vietnam’s export to the countries to 2025 with a vision to 2030. (3) Regarding
content: the thesis will study in depth the solutions to promote the export commodity
groups to some specific countries: The Czech Republic, Slovakia, Hungary and
Poland of Visegrad Group. Promoting the export of goods must be implemented in
accordance with the policies, tools and measures of the Government as well as
specific measures of enterprises. However, within the scope, the research only
approached and analyzed the policies promoting the export of goods of the
Government.
4. Research methodology
To deal with the tasks, the thesis uses the following main methods: case studies;
methods of analysis, statistics, comparison, synthesis; cross methodology; method of
direct investigation and collection; method of obtaining experts’ opinions and
methods of survey, investigation of enterprises.
5. The new points of the thesis
Firstly, through the study of theoretical basis, the thesis systemized and
contributed to further clarify the policies and specific measures to boost the export to
the Eastern European countries.
Secondly, objectively assessing the prospect of boosting the export Vietnam’s
goods to the Eastern European countries in the past time; Pointing out the advantages,
main achievement, especially disadvantages, causes to base, the basis for solutions to
promote the export of Vietnam’s commodities to the four Eastern European Countries
selected in the coming time.
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Thirdly, on the basis of the research, the thesis proposed the solutions,
recommendations in order to enhance the export of Vietnam to Eastern European
Countries by 2025 with a vision to 2030.
6. The structure of the thesis
Besides the heading, the conclusion, the overview of the research works, list of
references, the thesis is structured into 3 chapters as follow:
Chapter 1: Theoretical issues on promoting exports of goods and lessons
from some countries.
Chapter 2: Assessing the situation of boosting the export of Vietnam’s
goods to Eastern European Countries in the period of 2011 – 2016.
Chapter 3: Opinions, orientation and solutions to promote the export of
Vietnam’s goods to some Eastern European countries by 2025 with a vision to 2030.
OVERVIEW OF RESEARCH WORKS CONCERNING THE RESEARCH
CONTENT OF THE THESIS
Although, through the synthesis of all the abovementioned research papers and
materials (from evaluating the achievements that these studies have solved, the
limitations remain unresolved). There have been many studies both domestically and
abroad that directly or indirectly addressed the promotion of exports in general and
the promotion of Vietnamese exports to Eastern European markets in particular.
However, up to now, according to the author, there is no research study approaching
the specific tools and policies of both government and enterprises to promote exports
to the market of East European countries. At the same time, analyzing and assessing
the domestic and international contexts, both domestic and international
requirements, will have an impact on the promotion of Vietnam's export of goods to
the markets of Eastern Europe. On that basis, it is recommended to select the
viewpoints and orientations for promoting the export of Vietnamese goods to the
markets of Eastern European countries in the new context; as well as
recommendations on solutions to promote the export of goods of Vietnam to the
market in Eastern Europe in the coming time.
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CHAPTER 1
SOME THEORICAL ISSUES ON THE PROMOTION OF EXPORT GOODS
AND LESSONS LEARNED FROM A NUMBER OF COUNTRIES ON THE
PROMOTION OF THE EXPORT OF COMMODITY GOODS
1.1. DEFINITION, NATURE AND ROLE OF ACCESS TO EXPORT GOODS
1.1.1. The definition of exporting and promoting the export of goods
Export promotion is a way to improve the consumption of goods, including tools
and measures of the Government and enterprises to create opportunities and possibilities
to increase the value and quantity of goods for exporting to foreign markets.
1.1.2. The role of promotion the export of goods for national socioeconomic
development
Promoting exports contributes to increase export turnover, thereby contributing
to the increase of foreign currency revenue, creating capital for import, serving the
industrialization of the country.
Export promotion means increasing the ability to expand goods and markets
and increase the value of export goods, thus contributing positively to economic
restructuring and export structure, promote production development.
Promoting export plays the role of stimulating the renewal of equipment and
production technologies to create a source of goods for diversification of
commodities and export markets.
The export of goods in general and the ability to promote exports in order to
increase the volume and value of export goods will positively contribute to the
increase in employment and improvement of social life.
The promotion of exports contributes to strengthening and promoting the
country's external economic relations.
Export promotion is important for strengthening and promoting production and
business activities and enhancing export capability for enterprises.
1.2. CONTENTS AND FACTORS INFLUENCING ON PROMOTION OF
EXPORT GOODS
1.2.1. Content over promotion of export goods
1.2.1.1. Content over promotion of export goods
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(1) The Government’s strategies and policies for export promotion
* National Strategy: National Trade Development Strategy; National importexport
strategy; Foreign relations and international economic integration; Export promotion
policy of the Government (Policy on commodities, export credit support policy, tax
policy, exchange rate policy, market policy and trade promotion, export insurance Policies
to attract investment for export, Policy on development of infrastructure for export to
support export activities, Policy on human resource development for export promotion.
(2) Enterprises’ Measures for promotion of export (Information, research and
market forecasting activities; Trade promotion activities, export marketing of enterprises;
To diversify export products, build brand names and product quality on the basis of
research and application of modern and advanced technologies of enterprises; To invest in
renovating and raising the level of equipment and technologies of enterprises; Promote
networking and business cooperation, strengthen capacity to participate in production
networks and supply chains between the two sides, in regional and global scope...).
In general, promoting the export of goods must be combined and used based on
both policies and instruments of the Government as well as specific measures of
enterprises. However, within the scope of the research, the research only accessed
and analyzed national policices on promoting the export of goods. Therefore, the
main contents of promoting the export of goods to the Eastern European markets will
be determined as follows:
Chart 1.1. Policies on export promotion
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Source: Studies by the author.
1.2.1.2. Policies and tools in the national export promotion strategy
It can be said that the national strategy to promote exports includes the following
overall measures: (1) Integrate and coordinate export promotion programs to support and
facilitate access and delivery. Develop market for businesses. (2) Strengthening
international economic integration and cooperation to create opportunities and share
economic benefits and promote global growth. (3) Strengthen the support and active
contribution of overseas agencies and organizations for the purpose of boosting exports
and national economic growth. (4) Enhancing the role of trade associations in the
national business community. (5) Enhance international presence, focus on promoting
export markets. (6) Strengthening coherence between support policies to promote trade
and export development. (7) Facilitate access to business support resources. (8)
Speeding up international economic integration, attracting investment and financial and
credit support to boost exports to SMEs. (9) Develop and strengthen export promotion in
the direction of business strategy and strategic orientation of market development.
1.2.2. Factors influencing the export of goods
1.2.2.1.Factors of exporting countries:
(1) Awareness of leaders, policy makers and exporters; (2) National Economic
Development Strategy; (3) Natural conditions, comparative advantage and
competitive advantage; (4) Economic and market conditions; (5) Institutions and
policies on trade development; (6) Situation of the world commodity market.
1.2.2.2. Factors of import countries and international market:
(1) Trade liberalization and international economic integration; (2) Political
relations, world economy, global issues; (3) The policies of import countries; (4)
Trade policy requirements of regional and international economic organizations.
1.3. INTERNATIONAL EXPERIENCE IN PROMOTING EXPORT OF
GOODS AND LESSONS FOR VIETNAM
1.3.1. South Korea’s experience on solutions for promotion of export
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South Korea has shown rapid economic growth since the 1960s. The
government has offered various incentives to boost exports, wishing to exportled
economic growth.
South Korea's export promotion measures include: tax incentives, financial
incentives, the establishment of free trade areas and support organizations. The
government has provided a huge subsidy to promote exportrelated industries. South
Korea's export subsidies during the promotion of exports from the mid1960s to the
early 1980s, vary depending on the method of calculation.
In line with the policy of promoting exports, South Korea has implemented
import protection policies. Safeguards aimed at import substitution may tend to
counteract exports in the sense that production resources are allocated between non
trade, exports and imports.
Import barriers such as tariffs or any other nontariff barriers tend to increase
import prices, thus directing production resources from exports to imports.
1.3.2. China's experience of promoting export of goods to the Polish market
1.3.2.1. Overview of trade relations between China and Poland
Economic and trade relations between China and Poland have been growing
rapidly, in the context of a changing world economy that has shifted the flow of trade
and investment. Among the countries of Central and Eastern Europe, Poland is
China's largest trading partner, both in terms of volume of trade as well as imports of
goods and services.
China continues to improve the transparency of its trade and investment policies
and practices, develop policies to promote exports to Poland based on current efforts
to review, amend and add specific tools and measures, more clearly.
The government has implemented policies to assist exporters, such as tax refund
policy, monetary policy, interest rate subsidy, etc.
In general, both China and Poland are implementing good policies to promote
trade relations between the two sides. Moreover, the transparency of trade policies
between the two countries not only benefits the development of direct economic
relations between the two countries, but also facilitates trade facilitation in the
context of the trend. Multilateralisation is taking place throughout the world.
1.3.3. Lessons for Vietnam
1.3.3.1. Lessons
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First, in the context of Vietnam’s trade balance is relatively equal or it must say
that we usually face with trade deficit (although the balance of trade has improved
towards starting to gain trade surplus). Examination and use of exchange rate tool
should be careful because the use of the exchange rate tool can bring both positive
and negative effects on the overall economy. Experience has shown that due to the
impact of the exchange rate policy on trade balance and economy, the Korean
government does not use it as a major tool to boost exports. Instead, the Korean
government supports the development and operation of export promotion and support
organizations.
Second, bring into play the potential and comparative advantage in promoting
the export of goods with the outside. To intensify cooperation in deep processing and
diversification of export products in order to promote the export of goods to the
outside. Prioritize economic diplomacy, enhance mutual visits by the two leaders, and
strengthen trade and investment promotion at the government level. In addition,
China will strengthen the implementation of export tax rebates or reduction of export
taxes on goods and services.
1.3.3.2. Lessons
First, consider carefully in using the exchange rate tool. Experience has shown
that due to the impact of the exchange rate policy on the country's trade and
economic balance, the Korean government does not use the tool as a major tool to
boost exports. Instead, the government supports the development and operation of
export promotion support organizations.
Secondly, it is important to note the use of credit policies because credit policies
aimed at boosting exports through tight controls on commercial banks may lead to
ineffective use of resources and in some cases distort the activities of the banking
industry as well as the business.
CHAPTER 2
SITUTATION OF PROMOTION OF VIETNAMESE EXPORTS TO EASTERN
EUROPEAN MARKETS
2.1. GENERAL IN THE MARKET OF SOME EASTERN EUROPE
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2.1.1. Overview of the economic situation of the four selected Eastern European
countries
Republic of Poland: The average annual GDP growth rate of Poland in the
period of 2011 2015 is 3% per year. Poland's GDP in terms of purchasing power
parity has increased from $ 788.6 billion in 2011 to $ 1.003 billion in 2015. The share
of sectors in GDP is as follows: Agriculture: 3.3%; industry: 41.1%; service: 55.6%.
Per capita GDP will increase from US $ 20,500 / person / year in 2011 to US $ 26,400
/ person / year in 2015 and US $ 27,700 / person / year in 2016.
Czech Republic: The average annual GDP growth rate of the Czech Republic
in the period 20122015 is 1.1% per year. GDP of the Czech Republic according to
purchasing power parity has increased from $ 295.2 billion in 2012 to $ 331.4 billion
in 2015.
Republic of Slovakia: The annual average GDP growth rate in 20122015 is
2.23% / year. The GDP of Slovenia in the purchasing power parity has increased
from 145.1 billion USD in 2012 to 158.4 billion USD in 2015. The share of GDP in
the sector is as follows: Agriculture 3.4% Public Industry 30.4% Services 66.2%.
GDP per capita increased from USD 26,800 / person / year in 2012 to USD 29,500 /
person / year in 2015.
Hungary: The annual average GDP growth rate of Hungary in the period 2012
2015 is 1.4% per year. Hungary's gross domestic product (GDP) has risen from $
230.9 billion in 2012 to $ 257.0 billion in 2015.
2.1.2. Overview of trade situation of the four selected Eastern European
countries
Republic of Poland: Poland's importexport turnover has increased erratically
during the period 2011 2016. Of which, export turnover reached $ 191 billion in
2012 increased to $ 210.7 billion in 2014 then again reduced to $ 190.2 billion by
2015; The main export items included: Machinery, transport equipment 37.8%,
intermediate goods 23.7%, other manufactured goods 17.1%, food and live animals
7.6 %. The main import countries of Poland are: Germany 27.1%, UK 6.6%, Czech
Republic 6.6%, France 5.8%, Italy 4.7%, Holland 4.3%, Russia 4.2% (2014).
Similarly, import turnover reached $ 208.1 billion in 2012, up to $ 215.0 billion in
2014, then fall to $ 187.5 billion by 2015; Major import items include: 38%
machinery, transportation equipment, 21% intermediary goods, 15% chemicals,
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minerals, fuels, lubricants, and related products 9%; The main import markets of
Poland are: Germany 28.0%, Russia 9.1%, China 6.5%, Netherlands 5.9%, Italy
5.5%, France 4.2%, Plus Czech Republic 4.2% (2014).
Czech Republic: Czech imports and exports increase rapidly in the period 2011
2016. The main export items of the Czech Republic include: Machinery and
equipment for transportation, raw materials, fuels, chemicals matter. The main
importing countries are: Germany 32.4%, Slovenia 8.4%, Poland 6%, UK 5.1%,
France 5.1%, Austria 4.4% (2014). Import turnover is also growing rapidly in the
period 20112016, in 2015 import turnover reached 124.0 billion USD; The main
import items of the Czech Republic include: Machinery and equipment for
transportation, raw materials and fuels, chemicals; The major import markets are
Germany: 30.2%, Poland 8.5%, Slovenia 6.8%, China 6.2%, Netherlands 5.7%,
Austria 4.2%.
The Republic of Slovakia: Exports and imports of Sloanea increase
irregularities during 20122015. Of which, export turnover reached $ 77.82 billion in
2012, down to USD 56.39 billion in 2015; The main export items are 27% transport
and spare parts, 20% machinery and electrical equipment, 4% iron and steel, mineral
oil and 5% fuel (2015). The major import countries are Germany, 23.3%, the
Republic of Slovenia 13.6%, Poland 8.8%, Hungary 6.6%, Austria 6.5% 5.4%,
France 5.2% and Italy 4.8% (2014). Import turnover will decrease from $ 74.29
billion in 2012 to $ 53.5 billion in 2015; Major import items include machinery and
electrical equipment 20%, transportation and spare parts 14%, fuels and mineral oil
9% (2015); Major import markets included Germany 19%, Czech Republic 16.9%,
Austria 9.3%, Russia 7.9%, Poland 6.2%, Hungary 6.2%, Korea China 4.2%, China
4.0% (2014).
Hungary: Importexport turnover of Hungary has grown at a relatively low
level in the period 2011 2016. The main export items include: machinery and
equipment 53, 5%, manufacturers 31.2%, food products 8.7%, raw materials 3.4%,
fuel and electricity 3.9% (2012). The major import countries included Germany
26.7%, Romania 5.8%, Austria 5.7%, Slovenia 5.4%, Italy 4.9%, France 4.6%.
Britain 4.1%, Poland 4.0% (2013). Import turnover increased from $ 87.57 billion in
2012 to $ 92.92 billion in 2015; Major import items include machinery and equipment
53.5%, manufacturers 31.2%, food products 8.7%, raw materials 3.4%, fuel and
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electricity 3, 9% (2012); The main import markets are: 25.5%, Russia 8.6%, Austria
6.8%, China 6.7%, Slovenia 5.8%, Poland 4.9% Italy 4.4%, Czech Republic 4.2%
(2013).
2.2. SITUTATION OF PROMOTION OF VIETNAMESE EXPORTS TO
EASTERN EUROPEAN MARKETS
2.2.1. Overview of promotion of Vietnamese exports to some Eastern European
countries
In terms of export: Vietnam's export turnover to some Eastern European
countries increased from USD 698.6 million in 2007 to USD 1488.7 million in 2011
and increased to USD 5743.2 million in 2016. Exports to the Sloan market increased
from $ 82.1 million in 2007 to $ 297.6 million in 2011 and increased to $ 3,197.5
million in 2016; Polish market increased from $ 375.4 million in 2007 to $ 779.7
million in 2011 and increased to $ 1,650.0 million in 2016; The Czech Republic
increased from $ 198.2 million in 2007 to $ 375.4 million in 2011 and increased to $
771.5 million in 2016 and the Hungarian market increased from $ 51.9 million. in
2007, down to $ 36.0 million in 2011 and up to $ 124.3 million in 2016.
In terms of import: Vietnam's imports from Eastern European countries also
increased from US $ 168.5 million in 2007 to US $ 310.9 million in 2011 and US $
445.7 million in 2016. Imports from Poland increased from $ 68.3 million in 2007 to
$ 130.3 million in 2011 and increased to $ 236.0 million in 2016; The Czech market
from $ 65.9 million in 2007 dropped to $ 44.9 million in 2011 and increased to $ 93.3
million in 2016; The Republic of Slovakia increased from USD 2.9 million in 2007 to
USD 13.9 million in 2011 and increased to USD 40.5 million in 2016 and the
Hungarian market increased from 31 $ 5 million in 2007, up to $ 45.6 million in 2011
and $ 76.1 million in 2016.
2.2.2. Current situation of some solutions for promoting export of Vietnamese
goods some Eastern European markets
2.2.2.1. Regional integration and participation in the Free Trade Agreement
Vietnam EU (EVFTA)
In order to participate in the general development trend of the era, welcome new
development opportunities, from the VIIth Congress (1991), the Party has proposed
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consistent policies on international economic integration towards Multilateralisation,
diversification, emphasis on strategic partners and countries sharing borders.
Essentially, FTAs have contributed positively to the process of promoting
exports, improving import efficiency, shifting economic structure and enhancing the
competitiveness of domestic goods and services.
2.2.2.2. Developing a strategy for trade development and export and import of goods
(1). Exportimport strategy for the period 2011 2020
Decision No. 2471 / QDTTg dated December 28, 2011 of the Prime Minister
promulgating the strategy on import and export of goods in the 20112020 period
with orientation to 2030.
Implementing the Action Plan, the Ministry of Industry and Trade has
developed, submitted to the Prime Minister for approval and is implementing the
scheme:
+ The scheme on development of regional markets in the period 20152020
with a vision to 2030 (the Prime Minister for approval in Decision No. 1467 / QD
TTg of August 24, 2015).
+ The scheme on promoting Vietnam enterprises to directly participate in
foreign distribution networks up to 2020 (the Prime Minister for approval in Decision
No. 1513 / QDTTg of September 3, 2015).
+ The scheme on development of exportrelated clusters of mechanical, textile
and garment, leather and footwear industries (Minister of Industry and Trade
approved in Decision No. 4842 / QDBCT of December 9, 2016).
(2). A system of legal documents on import and export of goods
In recent years, the legal system related to import and export has changed and
improved with the promulgation and effective of a series of legal documents such as
Customs Law 2014, Amending and supplementing a number of articles of the Tax
Laws of 2014, the Law amending and supplementing a number of articles of the
Special Consumption Tax Law of 2014, the Law on Export Tax and Import Tax of
2016, the Amending Law Some articles of the Law on Value Added Tax, the Law on
Special Consumption Tax and the Law on Tax Administration in 2016, the Law on
Investment in 2014, the Law on Foreign Trade ... Decree No. 77/2016 / ND 7/2016 of
the Government amending and supplementing a number of provisions on conditions
for business investment in the field of international trading of goods, chemicals and
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explosive materials gas, fertilizer, gas trading, food business within the scope of state
management of the Ministry of Industry and Commerce.
Regarding administrative procedures and specialized inspection work, the
Ministry of Industry and Trade issued Circular No. 05/2016 / TTBCT dated
06/6/2016 regulating the provision of online public services by the Ministry of
Industry and Trade. Merchants; Circular No. 23/2016 / TTBCT dated October 12,
2004 repealing Circular No. 37/2015 / TTBCT dated 30/10/2015 of the Minister of
Industry and Trade stipulating limits and inspection the content of formaldehyde and
aromatic amines converted from azo dyes in textile products; Decision No. 3648 /
QDBCT dated 08/9/2016 announcing the list of imported products subject to
inspection of quality assurance, technical regulations and food safety before customs
clearance The Ministry of Industry and Trade replaces Decision No. 11039 / QD
BCT; Circular No. 27/2016 / TTBCT dated 05/12/2016 amending, supplementing
and abolishing a number of legal documents on conditions of business investment in
some areas under management State management of the Ministry of Industry and
Trade, ...
For border trade activities, in order to overcome a number of shortcomings and
difficulties in Circular No. 52/2015 / TTBCT, the Ministry of Industry and Trade
issued Circular No. 34/2016 / TTBCT. Details of crossborder trading activities of
traders under the Prime Minister's Decision No. 52/2015 / QDTTg of October 20,
2015 on the management of border trading activities with countries having Border
crossing, effective from 15/02/2017, replacing Circular 52/2015 / TTBCT.
Regarding standards and quality of goods and products, in order to contribute
to enhancing the quality control of imported goods, to build a system of standards and
standards, contributing to the protection of domestic consumers. , The Ministry of
Industry and Trade has issued Circular No. 33/2016 / TTBCT dated 23/12/2016
amending and supplementing a number of articles of Circular No. 36/2015 / TTBCT
dated October 28, 2015 promulgates the National technical specifications for tissues
and toilet paper; Circular No. 36/2016 / TTBCT dated 28/12/2016 regulates the
labeling of energy for energyconsuming equipment and devices under the
management of the Ministry of Industry and Trade.
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Apart from the specialized legal management system, the management
mechanism with specific fields and commodities, the customs legislation system has
changed a lot with the promulgation and effective.
2.2.2.3. Some programs of export promotion:
(1). To remove difficulties and problems for export; (2). National trade
promotion program; (3). National branding program; (4). Reliable export business
program.
2.2.2.5. Financial policies and Credit policies for export promotion:
(1). Exchange Rate Policy, (2). Export Credit Policy.
2.2.2.6. Policies on trade facilitation for enterprises:
(1). Development of logistics services, (2). National onestop shop, (3).
Administrative reform.
2.3. GENERAL ASSESSMENT ON SITUATION OF IMPLEMENTING
SOLUTIONS FOR PROMOTION OF VIETNAMESE EXPORTS TO SOME
EASTERN EUROPEAN MARKETS
2.3.1. Achievements
2.3.1.1. Regarding policies on export promotion
Regarding trade promotion policy: Trade promotion activities have been
implemented more and more synchronously and efficiently.
The National Branding Program: The propaganda for the program and
enterprises with brand name products has been increasingly strengthened.
The prestigious Exporter Program: Since its inception, the prestigious Exporter
Program of the Ministry of Industry and Trade has received positive responses from
the export business community across the country as well. The agencies concerned,
contributing effectively to the work of introducing, propagating and promoting the
image of Vietnam's national export enterprises.
2.3.1.2. Regarding financial and credit support policies as measures
contributing to export promotion
Basically, the regulations on investment credit policies of the Government have
overcome the limitations and shortcomings in the policy as well as difficulties and
obstacles in the implementation of policies in the previous period. Specifically:
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Firstly, the Government has issued many policies on finance and credit to
support the export of goods in general and export to some Eastern European countries
in particular.
Secondly, the interest rate mechanism is based on the principle that lending
interest rates are not lower than the average interest rate of the capital plus the
operating fee of the bank.
Thirdly, the list of statefunded projects has been adjusted to focus on the field
of socioeconomic infrastructure and industrialization and modernization.
Fourthly, the exchange rate policy has been directed by the Government to adjust the
state of the market, facilitate export promotion, curb inflation, stabilize macro
economy.
2.3.1.3. Regarding trade facilitation for export promotion
Ministries and sectors have actively implemented administrative procedure
reform, reviewing, simplifying administrative procedures, publicizing procedures on
the websites of the units, implementing well the reception and Onedoor, onestop
shop. Some Ministries/Agencies have implemented administrative procedures in
accordance with ISO procedures, creating favorable conditions for enterprises in
production and importexport activities.
The reform of administrative procedures of the Ministries and branches has
created favorable conditions for export enterprises, saving costs and shortening
procedures, thereby enhancing export competitiveness for enterprises.
2.3.2. Shortcoming
2.3.2.1. Limitations in policies to push exports to Eastern European countries:
(1) For market and commodity development policies: Market and commodity
development policies have not really contributed to boosting the export of goods to
the markets of Eastern European countries. (2) With regard to tax policy: tax policy
has not really contributed to promote the export of goods to enterprises in general and
export to the market of Eastern European countries in particular. (3) Export credit
policy and exchange rate policy: Tax policy has not really contributed to promote the
export of goods to enterprises in general and export to the market of Eastern
European countries in particular. (4) Trade Promotion Policy: Trade promotion
activities nationwide are still underdeveloped and there is a lack of a common trade
promotion strategy at the national level to link trade promotion activities to a more
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comprehensive one for meeting demands of bussiesses. (5) Export insurance policy:
the development of export insurance services and the capacity of insurance
companies in Vietnam are still limited. (6) Policy on infrastructure development for
export and human resource development: In fact, these policies have not yet
effectively promoted export of goods.
2.3.2.2. Restrictions on trade facilitation:
First, the time to declare taxes is still too great. Secondly, the customs sector has
seen a lot of reforms, however customs procedures still have many "problems". In
addition, the synchronization of ministries and agencies in supporting businesses to
deploy customs clearance is also inadequate. The infrastructure of
telecommunication, infrastructure investment in many places does not meet the
requirements, thus limiting the implementation of administrative reform on customs.
2.3.3. Reasons for shortcomings
2.3.3.1. Subjective reasons (by the Government):
First of all, the form of capital mobilization in depth for enterprises has not been
effective. The Government’s solutions and guidance of the State Bank of Vietnam on
supporting development of enterprises have not comprehensively implemented.
Second, the policy encourages foreign currency loans to improve the competitiveness
of enterprises. Third, although the exchange rate policy has not played a positive role
in properly protecting domestic enterprises, it has not strongly supported the export of
products that Vietnam has a comparative advantage. Fourth, export credit insurance
activities of banks and credit institutions in Vietnam are still limited, the proportion
of export credit insurance is very low. Fifth, the national trade promotion programs
are monotonous, with no major changes in organization and practices; There are no
new forms of trade promotion. Sixth, the Government has many positive directions,
but the process of amending legal documents is still slow (less than 30% in 2016)
while new issues arise. Seventh, the policies promoting exports to the markets of
some Eastern European countries have not really focused. Eighth, the leading role of
sociopolitical and socioprofessional organizations, professional associations have
not been effective, slow to innovate according to practical requirements; It has not
done well to promote the export of enterprises. Ninth, the role of trade representatives
and the Vietnamese community in Eastern European countries in facilitating the
export of goods to these markets is limited.
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2.4.2.2. Reasons by enterprises:
First of all, most businesses are not actively developing longterm business
strategy to Eastern European countries. Secondly, the potential for investment in
research and identification of potential export items to develop a strategy to promote
exports to these markets remains weak. Thirdly, trade promotion activities have been
paid due attention by businesses, but due to limited resources, they have not been
actively involved in the implementation of this activity. Fourthly, due to the
diversified market of Eastern European countries, Vietnamese exporters and
importers have not actively negotiated and overcome difficulties in payment. Fifth,
the application of new business methods, new forms of trade promotion of
Vietnamese enterprises in expanding and developing export markets for goods to
Eastern European countries is still limited. Sixthly, distribution directly to the
distribution network in the market of Eastern Europe is very limited. Seventh,
logistics and logistics are still a major obstacle to increasing trade links between
Vietnam and Eastern Europe. Eighthly, Vietnam's exports are increasingly focused on
large markets. Ninthly, export products of Vietnamese enterprises face stiff
competition in price, design, packaging, quality...Tenthly, the imbalance between
domestic and FDI in the issue of export. Eleventhly, the issue of linking with
enterprises of Eastern European countries in production, export, access to markets,
taking advantage of incentives and overcome the current challenges is limited.
2.3.3.3. Objective reason (by import countries):
Firstly, the exploitation of export potential in each of the Eastern European
countries (The Czech Republic, Republic of Slovakia, Hungary and Poland) of
Vietnamese enterprises is still limited. Secondly, the standards of the EU in general
and Eastern European countries in particular are very high. In addition, Eastern
European countries are adopting more and more technical barriers to trade in order to
limit export market of these countries. Third, cultural differences, political issues of
EU member states in general and Eastern European countries in particular (Turkish
crisis, Brexit problem, etc.) also affected export development of Vietnam. Fourthly,
some EU measures in general and East European countries in particular set higher
standards than WTO agreements. In addition to SPS regulations, enterprises should
meet the specific requirements of retailers and wholesalers.
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CHAPTER 3
VIEWPOINTS, DIRECTIONS AND RECOMMENDATIONS OF SOME
SOLUTIONS FOR PROMOTION OF VIETNAMESE EXPORTS TO SOME
EASTERN EUROPEN MARKETS
3.1. NEW CONTEXT AFFECTING VIETNAM'S POSSIBILITY TO
PROMOTE VIETNAMESE EXPORTS TO SOME EASTERN EUROPEAN
MARKETS
3.1.1. International context
3.1.1.1. The world’s economic prospects:
Overall, the world economy is continuing its cyclical rally since mid2016 and
has continued to grow in 2017 and maintain its momentum in the first quarter of 2018.
Global and regionalization have strongly promoted trade liberalization by reducing
tariff and nontariff barriers, facilitating the flow of goods, services, information, In
terms of capital, labor, etc., it opens up large market access, increasing labor
productivity and reducing production costs, thereby increasing the competitiveness of
goods and services.
3.1.1.2. Prospects of trade and price of the world:
The World Bank forecasts that world trade in goods and services will grow by
4.9% in 2017 and continue to improve to 5.1% in 2018 and 4.7% in the year of 2017.
At the same time, the value of world exports, both commodities and services in
dollars, will increase from $ 22,654 billion in 2017 to $ 25,273 billion by 2018 and $
26,701 billion by 2019, of which merchandise exports from $ 17.422 billion in 2017 to
$ 19.474 billion in 2018 and $ 20.515 billion in 2019.
3.1.1.3. International economic integration and Vietnam’s participation in
FTAs:
The Comprehensive Partnership and Cooperation Agreement between Vietnam
and the EU (PCA) has officially come into force on 1 October 2016 as a legal basis
for the cooperation agreements between Vietnam and the EU.
3.1.2. Internal context
3.1.2.1. Forecast of socioeconomic development:
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The World Bank (WB) has forecasted a reduction in Vietnam's economic
growth prospects over the medium term, which is seen as positive but still subject to
adverse impacts and risks.
Inside the country, the pace of structural reforms aimed at improving the
productivity of the private and public sectors is sluggish, significantly affecting
mediumterm growth prospects for Vietnam. In addition, extending the process
of dealing with bad debt in the banking sector and delaying fiscal consolidation
will pose additional risks to macroeconomic stability and longterm growth
potential of Vietnam.
3.1.2.2. Opportunities and challenges when Vietnam joins and implements
commitments in the FTA, especially the Free Trade Agreement between Vietnam
and the EU (EVFTA)
3.2. VIEWPOINTS AND ORIENTATIONS TO PROMOTION OF
VIETNAMESE EXPORTS TO SOME EASTERN EUROPEAN COUNTRIES
BY 2025 WITH A VISION TO 2030
3.2.1. Viewpoints
Firstly, promoting exports of goods to the markets of some Eastern European
countries is one of the best measures to expand trade relations with other countries in
the EU and the world.
Secondly, promoting the export of goods to the markets of some Eastern
European countries must be based on features and characteristics of each market so as
to be able to establish export market segments suitable to Vietnam's conditions.
Thirdly, taking the initiative and prioritize the development of strategies to
promote the export of goods of Vietnam to the market of some Eastern European
countries in the future to build and improve the competitiveness of goods and
enterprises in Vietnam. This is the basic and longterm path to boosting the export of
Vietnamese goods to these markets.
Fourthly, promoting the export of goods to Eastern European countries must be
based on creating favorable conditions and maximizing the dynamism of enterprises,
including exporters.
3.2.2. Directions
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Firstly, applying in a coordinated and effective manner the State's tools and
policies; At the same time, to harmonize the policies of the State with the measures to
promote enterprises to ensure the promotion of the export of goods from Vietnam to
markets in some Eastern European countries effectively.
Secondly, combining trade promotion and effective investment promotion in
Eastern European countries, appropriate strategies and effective investment in
Eastern European countries, strengthening joint ventures, cooperation and business
cooperation. Other appropriate investment to promote exports to Eastern Europe in
the coming time commensurate with the potential and advantages of Vietnam.
Thirdly, active and longterm strategy to penetrate the production network,
distribution in the market of Eastern European countries, rapid development
distribution system of products with competitive advantages, connected to the system
of distribution. The distribution of overseas Vietnamese in Eastern European
countries, building the trademark of Vietnam, ...
Fourthly, with its position in the European Community, the region with the
highest economic development and dynamic in the world, orienting to promote the
export of goods to Eastern European countries with the goal of creating Conditions
for Vietnamese goods have the opportunity to access and expand export markets to
other European markets.
Fifthly, strengthening the diplomatic work and making good use of the
opportunities arising from the implementation of the commitments in the FTAs that
Vietnam has been negotiating and signing such as the VietnamEU Bilateral Trade
Agreement The EU and the European Union (EVFTA), the free trade agreement
between Vietnam and the Eurasian Economic Union to promote the export of
Vietnamese goods to markets in some Eastern European countries.
3.3. SOME SOLUTIONS FOR PROMOTION OF VIETNAMESE EXPORTS TO
SOME EASTERN EUROPEAN COUNTRIES BY 2025 WITH VISION TO 2030
3.3.1. Solutions from the Government
3.3.1.1. Financial and credit supports for enterprises:
Capital solution to improve the competitiveness of enterprises in the context of
international economic integration; Firstly, mobilizing capital from the internal forces
of enterprises through the promotion of technical innovations, improving the quality,
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efficiency of work, increase labor productivity to reduce costs, increase the
competitiveness of products. This is considered a form of capital mobilization in
depth for businesses; Secondly, capital market development through research and
development of solutions to encourage and accelerate the equitization of SOEs,
issuance of nonvoting shares to increase the ability to raise capital for enterprises.
Thirdly, encourage credit institutions to diversify their credit products to enterprises
through retail banking development, apply technology in lending management to
optimize costs and standardize lending, improving the quality of products and
services provided to enterprises, developing payment cards, extending the funding of
secured real estate, intellectual property, factoring, ... Fourthly, comprehensive
implementation of government solutions and guidance of the State Bank of Vietnam
on supporting development of enterprises.
3.3.1.2. Payment support for enterprises
3.3.1.3. The exchange rate policy must be continuously improved and adjusted
to the domestic and international environment.
Firstly, regularly analyzing the global, regional and national economic situation
in order to work out a suitable exchange rate policy for each stage; Secondly, to
improve the management of foreign exchange in Vietnam; Thirdly, perfecting the
foreign exchange market of Vietnam to facilitate the effective implementation of
foreign exchange policy; Fourthly, completing the interbank foreign currency market,
the necessary conditions through which the state can grasp the supply and demand
relationship of foreign currencies and at the same time carry out the government’s
intervention measures if neccessary; Fifthly, finalizing the mechanism for adjusting
the Vietnamese Youth Federation. In order to ensure that the exchange rate correctly
reflects the demand and supply of foreign currencies in the market, it gradually
eliminates the regulation of the SBV's excessive band of exchange rates for
commercial banks' transactions and international trade; Sixthly, implementing multi
currency policy. We should choose strong currencies for payment and stockpiling,
including some of the currencies of the countries in which we have trade and trade
relations, and which have the strongest external relations as the basis for exchange
rate adjustment of VND; Sevenventhly, raising the position of the Vietnamese
currency.
3.3.1.4. Strengthening export credit insurance (Export Credit Insurance)
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(1) The Export Credit Insurance (ECI) needs to be developed in a manner
consistent with economic development strategies, international business practices and
the WTO principles, ensuring fair competition and be subject to the laws of insurance
and commercial. (2) ECI is highly specialized, requires large investment in capital,
information technology, risk assessment, debt recovery, transparent and fair
settlement; risk diversification through reinsurance and / or coinsurance. (3) It is
necessary to have a legal framework to regulate and create favorable conditions for
ECI enterprises to develop and to issue specific policies for granting credit to banks
for exporting enterprises which have ECI contracts.
3.3.1.5. Strengthening trade promotion activities:
(1) Supporting Vietnamese enterprises to improve their competitiveness such as
developing programs to develop export goods with advantages for exporting to
markets in some Eastern European countries. (2) Strengthening market research and
trade promotion activities. (3) Strengthening the exchange of information and
coordination in fully implementing commitments under the VietnamEU Free Trade
Agreement (EVFTA) and other cooperation contents for development and
cooperation purposes. The ability to promote export of Vietnamese goods to some
Eastern European markets by making good use of opportunities from this Agreement.
3.3.1.6. Improvement of Business Environment:
(1) Continuously making efforts in administrative cooperation between
Vietnam and Eastern European countries. (2) Upgrading the national IT infrastructure
for effective implementation of the Prime Minister's Decision No. 33/2016/QDTTg
dated 19 August 2016 on the Regulation on the provision and use of electronic
customs declaration information. (3) Improving measures to protect investors, as well
as to improve the accession and withdrawal mechanisms of economic operators on
the basis of research and implementation of agreements on barriers. This is because
Vietnam's exports to this market are facing difficulties in transactions and payment
guarantee.
Strengthening the capacity of Vietnamese enterprises and products to
participate in the global production and distribution network, build and develop
transnational companies in Vietnam, and build brands for Vietnamese products for
consolidating export markets.
3.3.1.7. Strengthening international relations and economic integration:
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(1) Strengthening the organization or establishment of intergovernmental
committees for bilateral trade and economic cooperation; (2) There should be
mechanisms to promote exchanges among enterprises, actively promote delegations
at the leadership level; (3) Strengthening the Government’s support to the
Vietnamese Association in Eastern Europe, especially the Vietnamese Community in
Eastern European Countries, ... (4) Supporting the establishment of cooperation
mechanisms between organizations science and technology and farms in the
implementation of clean production processes to effectively exploit the cooperation
agreements between some ministries and economic groups of the two countries in the
fields of oil and gas, training staff ... (5) Improving the performance of Vietnamese
trade representative offices in Eastern European countries.
3.3.2. Solutions for enterprises:
(1) Actively building longterm business strategy to Eastern European countries;
(2) Researching and identifying potential export items to develop a strategy to
promote exports to Eastern European countries; (3) Enterprises should actively
promote trade promotion and marketing activities; (4) Proactively negotiating and
overcoming difficulties in payment; (5) Promoting the flexible application of modern
and appropriate business practices to develop trade with Eastern European countries;
(6) Strengthening investment and innovation to improve the competitiveness of
products and enterprises and (7) Actively and actively participating in direct
distribution of foreign distribution networks to boost exports, increase the turnover,
diversified types of Vietnamese goods in foreign distribution systems.
3.3.3. Other solutions
3.3.3.1. Promote the export of Vietnamese goods to markets in some Eastern
European countries (The Czech Republic, Republic of Slovakia and Hungary and
Republic of Poland).
3.3.3.2. Solutions for Associations:
Strengthening supply of information and creating links among enterprises in the
same industry; Researching and organizing trade promotion programs to support
enterprises in commodity markets in Eastern Europe; Associations in the country
should coordinate with functional agencies to propagate and promote Vietnamese
goods in Eastern Europen markets.