Hanoi (VNA) - Vietnam can achieve a whopping 56 percent annual rise inexport turnover this year to reach 275 billion USD, a senior official has said.

Minister-Chairmanof the Government’s Office Mai Tien Dung said at a press conference on October3 that this achievement is possible with concerted efforts by all stakeholdersincluding businesses, ministries and agencies.

Ifthe target is achieved, it would far exceed the target of 188 billion USD setfor the year. The target was later revised to 202 billion USD.

Dung,who based his statement on a new report by the Ministry of Industry and Trade(MOIT), said exports had already posted an impressive 19.8 percent year-on-yearincrease in the first nine months of the year.

Accordingto the General Statistics Office (GSO), exports by the domestic sector in thefirst nine months touched 43.2 billion USD, a 16.8 percent increase, whilethose of the foreign-invested sector was 110.8 billion USD, an increase of 21 percent.

TheUS remained the largest consumer of Vietnamese goods with 31.2 billion USD, followedby the EU and China with 28.4 billion USD and 21.9 billion USD, respectively.

Importturnover during the first nine months jumped 23.1 percent year-on-year to 154.5billion USD, with imports by the domestic sector touching 61.3 billion USD, an18.7 percent increase, and that of the foreign-invested sector rising 26.1 percentto 93.2 billion USD.

Chinacontinued to be the largest importer of Vietnamese goods with 41.6 billion USD,a year-on-year surge of 15.6 percent. The Republic of Korea (RoK) and ASEANcame second and third with 33.9 billion USD and 20.6 billion USD, respectively.

Vietnam’strade deficit for the periods is estimated at 500 million USD.

Thetrade deficit incurred by the domestic sector totaled18.08 billion USD, andthat of the foreign-invested sector was 17.64 billion USD.

Potentials,challenges

Expertshave said that the growth potential for exports is very high, with Vietnamesegoods and commodities present in nearly 200 countries and territories.

Alongwith the focus on exports to key markets with high purchasing power like theUS, the EU, Japan, RoK, China and ASEAN, Vietnamese goods have also expanded toAfrica and Latin America.

However,the country is expected to face many obstacles and challenges ahead, includingcompetition from other countries dealing in similar commodities and goods,pressure from anti-dumping lawsuits, and other trade barriers arising out ofincreasing protectionism in importing countries.

Moreover,Vietnamese exports are still focused on scale and quantity rather than qualityand value, the experts said.

TranThanh Hai, Deputy Director of the MOIT’s Export Department, said that although Vietnamhad joined the global supply chain, its role remains modest.

Thecountry’s export turnover was still heavily dependent on exports of FDIenterprises, with their contribution much higher than that of domestic firms.

Besides,Hai said, FDI firms have not supported local businesses in strengthening theirpresence in the global supply chain.

Theunder-developed supporting industry is also hindering domestic firms by forcingthem to import a large quantity of components, he said.

Haialso stressed that most Vietnamese enterprises have not fully grasped andupdated their knowledge of FTA provisions, and this restricts their ability tomake proper business plans before exporting.

Hesaid domestic firms need to increase their competitiveness by improvingcorporate governance and applying technological innovations.

Inthe processing and manufacturing sectors, enterprises will find it difficult tosustain their exports if they ignore development of the supporting industry, Haisaid, adding this task must be accorded top priority.

Hesaid it was very important that the localisation rate in key industries likemechanical products, electronic components and devices, textiles and footwearincreases significantly in the near future. -VNA