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After
more than 10 years of non-stop development of average
9% per year, Vietnam became as one of the most potential
markets in industrial machinery and equipment. Apart
from this remarkable figure, Vietnamese industrial
sectors and exports have gradually reached better
figures of 15% and 25% per year respectively. Vietnamese
economy situation has changed; it faces new stage
of joining to the world globalization.
The Vietnam-US bilateral trade
agreement (BTA) will pave the way for greater two-way
trade between the two countries and help boost US
investment in Vietnam, the greatest beneficiary
will be Vietnam, as access to the US market will
be much easier given the reduction of most import
duties from an average of 40 per cent to 2 per cent,
it comes into effect will certainly trigger a boom
in exports from Vietnam to the US. Trade Ministry
figures show that Vietnam's exports to the US a
year-on-year increase of 40 per cent. According
to an estimate by the World Bank, Vietnam's exports
to this huge market will rise from US$820 million
last year to US$3 billion in 2005, and US$8 billion
in 2010.
Besides, Vietnam is going to join AFTA (Asian Free Trade Agreement) in 2006 and by that time,
trade tariff and non-tariff
between ASEAN countries will be cancelled or reduced
so that goods can be moved easily through ASEAN nations
to nations. Export of Vietnamese goods will increase
remarkably but Vietnam products will also be faced with
strong challenges from foreign competitors.
Obviously,
attending this most specialized and the largest International
Industry Exhibition is opportunities and also challenges
to Vietnam manufacturers. Government of Vietnam knows
that, Vietnamese private businessmen do, too. So, to
be sure the competition will be better for Vietnam companies,
the Government has approved new development policy so
called as " Industrialization and Modernization
of the economy" with billions of USD investment
yearly. Private Vietnam businessmen have also been trying
to modernize their production equipment by investing
more and more capital. That is why one realized that
USD 3,000,000,000 of machines and equipment purchase
has been spent annually. Certainly it's the best time
and channel for global machinery and equipment manufacturers
and suppliers to penetrate into Vietnam market. |
