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.
