Hanoi spends VND50 bil on trade promotion

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To fulfill its economic targets, Hanoi is set to maintain stable export growth in the coming years.

A reporter from Radio the Voice of Vietnam interviewed Pham Duc Tien, Deputy Director of the Hanoi Industry and Trade Department on the issue.

Reporter: What is your opinion about Hanoi’s import-export activities over the past nine months?

Mr Tien: Over the years, the capital city has achieved an average economic growth rate of 14%-15%. But due to the impact of global economic downturn, this year’s figure is estimated at 1.5% lower than last year.

One reason is a decline in the export of farm produce as many countries are focused more on their domestically-made goods. Another reason is caused by market prices.

In the current situation, when businesses need more capital to maintain their export performance, the State should consider pump priming by reducing interest rates on bank loans.

Reporter: Does Hanoi have any key groups of commodities to ensure stable economic growth in general and export turnover in particular?

Mr Tien: Hanoi has more than 50 key commodities, which have great potential for export, like garment and textiles, footwear, handicrafts, and electronics. For example, garment and textiles grow by 14.3%, electric and electronics products by 4.6 %, handicrafts by 11.9 % and footwear by 23%.

Meanwhile, the export of industrial products is forecast to increase sharply in the coming years.

Reporter: What measures has the capital city taken to promote exports?

Mr Tien: From the beginning of this year, the Hanoi Department of Industry and Trade has advised on the need to expand the export market.

The first solution is to iron out snags for businesses. Hanoi will set up teams to assist them with post investment interest rates on bank loans.

In other words, the city will have a mechanism for supporting businesses in low-interest loans to promote their activities.

So far this year, Hanoi has also spent VND50 billion on trade promotion. Apart from such traditional markets as the US and EU, Hanoi will approach new markets like South Africa, Brazil, and South America. Some businesses have agreed to export goods to the Brazilian market.