At the hearing, Minister Hoang said economic development demand and world price hike, particularly the increasing prices of imported products such as steel, fertilizer, plastics, petroleum and fibre, are key reasons behind the problem.

The minister admitted that shortcomings remained in forecasting the market, the economy’s demand and both positive and negative impacts of the country’s accession to the World Trade Organisation (WTO) on business activities.

Minister Hoang said that speeding up exports is one of key measures to reduce trade deficit. Besides traditional products, local businesses also need to turn out more potential commodities such as farm produce and minerals, and to focus on exporting key staples such as garments and textiles, footwear, furniture, electronics, agricultural and aquatic products, and particularly high-tech products.

Additionally, developing supporting industries for the production of machinery, equipment and materials is also needed to cut down imports, Hoang said.

According to the minister, by 2015, Viet Nam will not have to depend too much on imports as a series of oil refineries and steel ore plants across the country will be put into operation. In addition, the fertilizer plants in southernmost Ca Mau province and northern Ninh Binh province will turn out products. The plan to produce 1 billion metres of cloth by the apparel sector will also ease the situation, he added.

Minister Hoang pointed to the need to build technical barriers and apply measures to enable local sectors and products to be in line with WTO regulations and agreements that Viet Nam has signed to protect domestic products.

According to the minister, the export picture is bright with a 20 percent growth rate of many key staples. “This is an important achievement, particularly after one year since Viet Nam joined the WTO,” he said.

Source: VNA