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The Vietnam News

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US Vietnam trade accord seen to boost vietnamese exports

HANOI - Vietnam's exports to the United States in early 2000 rose by 20 per cent year-on-year with further growth expected in the wake of the recently signed Vietnam-US Trade Agreement. The value of exports to the US until early June was US$243 million. In just five years, exports to the US have increased 10-fold, reaching $504 million in 1999. Although the US is now Vietnam's seventh largest export market, the value of imports from Vietnam represents 0.5 per cent of the US' import bill. One problem is that the US still levies high tariffs on most Vietnamese goods, though the trade deal should remedy this.

Topping the list of exports to the US were aqua products, with a value of $125.5 million last year and $76.9 million in the first five months of this year. Footwear was second, with an export value of $102.6 million in 1999 and $34.1 million in the first five months of this year, though experts say this could rise if the products are improved. Although crude oil exports to the US only began last year, it is now the third largest category, with $99.6 million worth of it shipped in 1999 and $38.4 million in the first five months of 2000. Ranked fourth on the list of exports was coffee, with $59.2 million exported last year. The absence of tariffs on coffee makes it a promising export product and Vietnamese producers are growing Arabica coffee, America's favourite.

Garment and textile exports remain modest, as they face much higher US tariffs than similar exports from nations with MFN status. Other Vietnamese exports reaching the US market include cashews, pepper, rice, handicraft items, fresh and dried fruits and vegetables. According to Nguyen Dinh Luong, assistant to the Trade Minister, the new trade agreement should boost exports to the US, particularly garments, footwear, wooden items, household plastic products and processed foods.

The Trade Ministry is encouraging domestic businesses, especially in these areas, to research the US market closely, improve their management skills, increase their products' competitiveness and plan their marketing strategies.

Vietnam News Agency - August 17, 2000.