(VEN) - Despite the negative influences of the global economic downturn and high domestic inflation, Gia Lai continues to obtain significant growth. Economic growth hit 13.14 percent in 2011. Many targets were exceeded. Export revenue reached US$350 million, equal to 194 percent of the plan, marking an increase of 68 percent from the previous year. Vietnam Economic News' Ngoc Tuan spoke with Huynh Ngoc Tuc, the director of the Gia Lai Province Department of Industry and Trade.
In recent years, Gia Lai has obtained significant results in its export revenue. How do you access these results?
For many years, Gia Lai has paid special attention to exports. Export revenue is considered as an important task in the province's socioeconomic development. Businesses have actively taken part in implementing annual export targets. In 2006-2010, export revenue totaled US$657.08 million, (equal to US$131.41 million annually on average). Export revenue reached US$208 million in 2010 and US$350 in 2011, an increase of 68 percent compared to 2010 and 94 percent compared to the target. This marks a breakthrough in export revenue. This breakthrough is the result of a favorable export market and an increase in the prices of some export products. Businesses have actively grasped all opportunities to enhance exports.
In addition, in recent years, Gia Lai has made enormous efforts to issue sound policies to effectively promote local export products. However, there are still many difficulties in exporting their products. Gia Lai will have to overcome these difficulties to brighten its economic performance and improve the living standards of local people.
Can you tell us more about those difficulties? What methods will be adopted to overcome difficulties?
With diverse and abundant agricultural products, Gia Lai has great potential for exports. However, along with its advantages are some difficulties. Businesses have low export skills and inefficient financial capabilities. Therefore, they lack stable operations. They often export raw products or semi-finished products which have weak competitiveness and produce low economic value. To promote exports, Gia Lai will continue to help businesses renew technology to promote processing, producing and exporting agricultural and forestry products. The province will have more preferential policies to attract investments and create favorable conditions for businesses to improve their capability in processing and exporting their products.
What targets have been set for Gia Lai to enhance exports toward sustainability?
Gia Lai has drafted a development plan until 2015 to expand the area growing export cash crops such as rubber, coffee, cashew, pepper and tea. In addition, a plan on developing wood processing facilities is under construction. Gia Lai is planning to build a cross border urban zone in the Le Thanh Border Crossing which will become a gateway to Laos and Cambodia. The province will have more policies to enhance attracting domestic and foreign investment to built infrastructure and promote socioeconomic development, creating favorable conditions for the exchange of goods through the border crossing.
In 2012, to promote exports, businesses should improve their product quality to strengthen competitiveness and diversify export markets to avoid depending on traditional export markets. They should follow domestic and international markets in order to build suitable business strategies in different periods and intensify exploiting local products and improving product quality and design to increase their export value and enter larger markets. In addition, businesses should cooperate with each other to expand export markets, look for new markets to reduce dependence on traditional markets and intensify exporting their products to the markets which are not under influences of the economic crisis. Cambodia is a potential market. So in the coming time, the province will boost trade promotion programs to help businesses export their products to this market./.
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