Nghe An needs to strengthen links to promote exports

The challenges

In the context of the global pandemic, in 2020,export turnoverNghe An's export turnover reached 1,123 million USD, of which goods exports reached 813 million USD. In general, the number of items with growth in 2020 was still greater than the number of items with decreased turnover. This is truly an encouraging effort, contributing significantly to the province's GDP growth.
Goods from Nghe An are exported to more than 128 countries and territories around the world, in addition to traditional markets such as China, India, Japan, Hong Kong, etc.; businesses have added 15 more markets. Taking advantage of FTAs, some businesses have seen rapid growth in export turnover to EU and CPTPP countries.

Processing wood chips for export in Hoang Mai Industrial Park. Photo: Thanh Yen

Enterprises in the province have exported over 57 groups/items of all kinds. The structure of the groups of items has also changed significantly: the turnover of processed industrial goods accounts for 77.5%; the group of agricultural, forestry and fishery products in 2020 accounts for 11.44%. Export activities in 2020 took place with the participation of 200 enterprises in the province. Of which, 5 enterprises achieved a turnover of over 30 million USD, 12 enterprises achieved over 20 million USD; 24 enterprises achieved a turnover of 10 million USD or more.

Besides the positive results achieved,Nghe AnThe potential and comparative advantages of the locality have not been effectively exploited; the province's import and export still have some limitations. The scale of exported goods is still small, the export turnover only accounts for about 0.3% of the total export turnover of the whole country, not commensurate with the potential of the province. Many export items of the province have not taken advantage of the potential raw materials of the province such as cassava and cassava starch, wood products, etc. Nghe An's export products do not have a brand, the price and quality are not competitive, the added value is low. The quality of Nghe An's export goods in general is considered lower than that of other provinces in the country; the types and designs of products are still monotonous, not attracting consumers.

Chart of enterprises in the province that have exported goods to markets of 122 countries around the world. Graphics: Lam Tung

Up to now, our country has almost completed the opening of access to new markets, with 12 free trade agreements (FTAs) signed and under negotiation, as well as the conclusion of negotiations on a number of FTAs. The opportunity to boost exports when our country participates in new generation FTAs ​​is huge because according to the roadmap, import tax commitments of partners will gradually be reduced and eliminated, creating competitive advantages for Vietnamese goods in many major markets. In particular, the integration opportunities brought by FTAs ​​are huge, especially in the ASEAN Economic Community (AEC), FTA with the EU (EVFTA) and the CPTPP agreement. However, to make good use of the opportunities, we also need to clearly identify the challenges to proactively overcome them.

Mr. Cao Minh Tu - Deputy Director of Department of Industry and Trade

Link to develop

In order for Nghe An to be a growth pole with the potential to spread modern industry and smart agriculture, playing a leading role in the development trend, with sustainable inclusiveness in the North Central region and the whole country, it requires breakthrough and synchronous solutions. And one of the solutions that needs to be considered is to increase regional linkages to improve competitiveness and maximize the efficiency of investment capital sources.

Producing superfine stone powder for export in Quy Hop district. Photo: Thanh Le

According to Mr. Phan Van Chinh - Director of the Import-Export Department - Ministry of Industry and Trade, in the coming time, the Party Committee, government and enterprises of Nghe An province must research, develop plans and resolutely implement solutions to improve professional capacity and competitiveness to promptly adapt to the import-export situation in the context of international economic integration.

Exporting 50,000 tons of rolled steel to Europe and America. Photo: Manh Hung

Nghe An, Thanh Hoa, Ha Tinh are provinces located in the North Central region, with many socio-economic and other difficulties. Coordination between provinces to form and develop economic zones is very important.

Immediately after the EVFTA takes effect, the EU commits to eliminating import tariffs on about 85.6% of tariff lines, equivalent to 70.3% of Vietnam's export turnover to the EU. Photo: Thu Huyen

With a plan of nearly 200,000 hectares of planted forests, Nghe An has the capacity to grow 15,000 hectares each year, harvesting about 500,000 m³potential source of raw materials for developing wood and wood products. In addition, Nghe An forests (about 685,000 hectares, of which economic forests are over 176,000 hectares) also have abundant forest products, rattan, and natural medicinal herbs to develop export items. This is a very favorable condition for developing the export of wood and wood products, handicraft products when major export markets of the wood and handicraft industry continue to maintain growth momentum such as the United States, EU, Japan and China, while penetrating and expanding to exploit potential markets and new markets.

Bamboo and rattan for export. Photo: Thanh Hai

With natural resources, Nghe An has an abundant supply of construction materials such as cement, roofing sheets, precast concrete, etc. Construction materials are one of the export items that bring high turnover, promote industrial production development that Nghe An can research, attract investment, develop production and export.
In addition, review and adjust approved plans related to production and processing of export goods, especially for agricultural and aquatic products.

In the context of increasing awareness of people as well as governments of countries about protecting consumer health and protecting the environment, leading to the application of increasingly strict standards on food safety and environmental protection, many countries issue regulations on traceability,... Nghe An also needs to focus on restructuring the agricultural sector towards developing multifunctional agriculture, high-tech ecological agriculture, strengthening control of supply sources, ensuring product quality and orienting production in line with market signals./.