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.
Trang 11. 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
Trang 2 2 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
Trang 34. 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.
Trang 4Thirdly, 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
Trang 6PROMOTION OF THE EXPORT OF COMMODITY GOODS
1.1. DEFINITION, NATURE AND ROLE OF ACCESS TO EXPORT GOODS1.1.1. 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
Trang 7(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
Trang 8Source: 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
Trang 9South 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 nontrade, 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
Trang 10 10 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 2SITUTATION OF PROMOTION OF VIETNAMESE EXPORTS TO EASTERN
EUROPEAN MARKETS2.1. GENERAL IN THE MARKET OF SOME EASTERN EUROPE
Trang 11 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,
Trang 12 12 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
Trang 132.2 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