Identifying new growth drivers, 'greening' the Industry and Trade sector
The Industry and Trade sector identifies new growth drivers, enhances resilience to external "shocks" and effectively exploits the integration process. In particular, the priority focus is on developing foundation industries and clean energy.
In 2021, despite many unprecedented difficulties and challenges, the Industry and Trade sector still achieved encouraging results with import and export reaching a new "peak". Government Electronic Newspaper had an interview with Minister of Industry and Trade Nguyen Hong Dien about the solutions the Ministry offered during the COVID-19 outbreak, accompanying businesses to restore production and business, as well as as the orientations of the Industry and Trade sector before the new year 2022.
Minister of Industry and Trade Nguyen Hong Dien discussed with the Government Electronic Newspaper about the orientations of the Industry and Trade sector before the new year 2022
Let's work together and unite to "overcome the storm" of COVID-19
Taking on the position of Minister of Industry and Trade from April 4, I would like to ask the Minister what he said after 2021 months of sitting in the "hot seat", especially in the context of the fourth outbreak of the COVID-8 pandemic, seriously affecting the economy. country's economy, how did the Minister identify those challenges?
Minister Nguyen Hong Dien: It can be said that the fourth outbreak of COVID-19 was not only a common difficulty for the whole country, but for me personally, this was a huge challenge as I had just accepted the new tasks that the Party and State had assigned. The country and the people entrusted it.
If in the first months of 2021, we started with many positive signs, then at the end of April, the country faced an "unprecedented big challenge" when the fourth COVID-4 epidemic broke out in many localities and penetrated into major economic and urban centers.
The epidemic spreads widely around the world, not excluding Vietnam. COVID-19 with the emergence of the Delta variant spreads very quickly and is much more dangerous than the previous original strain, negatively affecting all areas of economic and social life. Many businesses had to temporarily suspend production and business to implement anti-epidemic measures, of which the export and import businesses were heavily affected.
At that time, the export turnover of key economic areas decreased seriously, typically the export turnover of Ho Chi Minh City in July decreased by 7%, Binh Duong decreased by 31,2% compared to the month. 7,1. The downward trend has not stopped, in August Ho Chi Minh City's exports continued to decrease by 6%, Binh Duong decreased by 8% compared to the previous month.
Implementing the direction of the Government and the Prime Minister with the highest anti-epidemic spirit, many localities in the Southern region have implemented social distancing measures. The restriction of circulation in localities immediately affected the circulation of goods. Local regulations were applied inconsistently, causing many difficulties for businesses, disrupting supply chains, seriously affecting production and business activities.
Difficulties pile up when businesses face the problem of stopping production to fight the epidemic or maintaining production - ensuring anti-epidemic work.
Production costs have increased due to increased raw material prices, large costs for disease prevention, and international freight shipping costs have increased 7-8 times compared to the previous time. The COVID-19 pandemic has not yet "cooled down"... all of these factors have become a burden for all businesses across the country.
With production costs too high and goods unable to be transported, many southern businesses have chosen to temporarily close their factories while northern businesses have chosen the "3 on-site" option to maintain production. Despite great efforts, the "3 on-site" plan also raises many inadequacies such as: accommodation conditions for workers are not guaranteed, activities outside working hours are complicated and There may be consequences for workers' psychology and welfare when they are separated from their families for too long, testing costs increase, and the mandatory time to apply the "3 on the spot" motto may be prolonged. leading to instability within the business...
How did the Minister "steer" the boat of the Ministry of Industry and Trade to overcome difficulties to achieve very good results like today?
Minister Nguyen Hong Dien: In the context of many difficulties and challenges, following the timely and close instructions of the Government and the Prime Minister, we - the officials of the Industry and Trade sector - have proactively coordinated with the Ministries. , sectors and localities deploy synchronously, drastically, flexibly and effectively solutions with many good and creative ways to promptly remove difficulties and obstacles for businesses in production and business activities. business and import and export.
First of all, the Ministry of Industry and Trade promptly assessed the situation correctly and soon established a "Forward Steering Committee" to organize forces to supply essential goods and services and "Special Working Groups" to promptly remove difficulties, support businesses to maintain production and business, prevent production and supply chain disruptions, and promptly seize recovery opportunities as soon as the COVID-19 "storm" subsides; At the same time, closely coordinate with relevant levels and branches to promptly handle problems that businesses encounter in the circulation of goods and raw materials for export production, and promptly relieve bottlenecks. at border gates and ports to maintain import and export activities...
In addition, we strongly promote trade promotion activities in the digital environment, promote e-commerce activities to effectively support businesses to save costs, increase trade speed, and shorten communication distances. method and time, increasing the scope and number of market access and potential customers, making an important contribution to the country's import-export miracle in 2021.
Today, the last day of 2021, I am very happy to announce that the country's total import-export turnover reached nearly 670 billion USD, an increase of nearly 23% compared to the previous year. In particular, export turnover reached a high increase of 19%, trade surplus was maintained for the 6th consecutive year with a surplus of 4 billion USD.
The scale of exported products continues to expand. In 2021, we continue to have 35 items achieving export turnover of "billion dollars", an increase of 1 item compared to 2020, of which 8 items achieve export turnover of over 10 billion USD, an increase of 2 items. compared to 2020.
The structure of exported goods continues to improve in a positive direction, the structure of processed and manufactured industrial goods continues to increase from 85,5% in 2020 to 86,7% in 2021, Vietnamese goods participate in deeper into the global production and supply chain.
It is very encouraging that Vietnamese goods continuously make their mark on the world map as we trade surplus mainly in markets of developed countries with strict quality requirements for imported goods such as the United States. (trade surplus is about 80,2 billion USD); EU (trade surplus is about 23,1 billion USD).
Free trade agreements have been well utilized by businesses as we have maintained traditional export markets (United States, China, European Union - EU, ASEAN, Korea, Japan... ) has just expanded into more potential markets.
Regarding the EVFTA Agreement, 2021 contributed to export achievements when Vietnam exported goods to the EU reaching about 45,8 billion USD, an increase of 14,2% compared to the time when there was no agreement. Vietnam's export turnover using C/O form EUR.1 reached about 7,8 billion USD, showing that many Vietnamese businesses have paid attention to taking advantage of opportunities from the European Union's tariff reduction under EVFTA.
The UKVFTA Agreement implemented from the beginning of 2021 has helped Vietnam - UK bilateral trade relations not be disrupted in the context of the UK leaving the EU with two-way trade reaching nearly 2 billion USD and the value Import and export both increased by double digits (export increased by 6,6%, import increased by 2%). CPTTP Agreement, exports to Canada increased by 15,4%, to Mexico increased by 24,1%, to Peru increased by 19,5%...
The above numbers are the clearest evidence that the Government's efforts to open the market through bilateral and multilateral trade negotiations have succeeded in removing barriers and making standards and regulations transparent. determination in partner markets has helped exports have more balanced growth, not only in terms of scale but also in depth.
Vietnam's export goods have been able to access the most "difficult" markets in the world, especially agricultural and aquatic products, which are relatively heavily affected by the epidemic. This continues to be an advantage that Vietnamese businesses need to take better advantage of in the coming time...
Minister Nguyen Hong Dien on a field trip and survey at the power plant
Green energy is balanced in Power Plan VIII
If import and export create miracles in 2021, perhaps "renewable energy" is an area of great interest to businesses, people and public opinion. Recently, the Minister made a breakthrough in amending the Electricity Law, proposing that all economic sectors can participate in electricity transmission investment. Please ask the Minister, what is the legal basis for you to give a different opinion from the previous regulations (the State monopoly on electricity transmission) and your assessment when this proposal is realized in protecting ensure national energy security?
Minister Nguyen Hong Dien: One of the tasks and solutions to implement the orientation of the National Energy Development Strategy to 2030, vision to 2045 according to Resolution No. 55-NQ/TW dated February 11, 02 of the Politburo is : “Research and develop incentive mechanisms to attract non-state capital to invest in construction of the national power transmission system; operate an independent national power system under state control" and "mechanisms and policies for investment in building a power transmission system, separate from the state monopoly on power transmission. Implement maximum socialization in investment, exploitation and use of facilities and services in the energy sector, including the national power transmission system on the basis of ensuring national defense and security.
However, the State monopoly policy in electricity transmission activities stipulated in Clause 2, Article 4 of the Electricity Law is not consistent with the Party's guidelines and policies in Resolution No. 55-NQ/TW, and has not yet been implemented. meet practical and urgent needs in recent times. Therefore, when making this proposal, the Ministry of Industry and Trade has legislated the Party's guidelines and policies in Resolution No. 55-NQ/TW on socialization of electricity transmission.
With "worries" about energy security, we have taken this factor into account.
The current Electricity Law has regulations on State control over electricity transmission activities: Investors participating as an electricity transmission unit will have to comply with the provisions of the Electricity Law. and sub-law documents, such as: compliance with operating methods, command and control orders of the national power system dispatching unit; ensuring standards and technical regulations, ensuring the safe, stable and reliable operation of the power grid and power transmission equipment; Licensed for transmission operations according to regulations; has the right to recover investment costs for construction, operation and maintenance of invested assets through electricity transmission prices.
In addition, when investing in power transmission grid construction, investors must also comply with investment and construction laws and be managed by state management agencies according to their investment authority. , build. At the same time, the state requires transmission grid investors to allow other entities the right to connect to the transmission grid by the assigned investor.
Therefore, when this proposal is legislated, it will ensure national energy safety and security.
There are opinions that we are talking a lot about green energy. However, the cost of selling electricity when "going green" has not been mentioned. It is even possible that the price of electricity will exceed the economy's tolerance if coal-fired power is completely replaced with renewable energy. Please ask the Minister, how does Electricity Planning VIII calculate the roadmap to both "green" energy and ensure endurance for the economy?
Minister Nguyen Hong Dien: Power planning VIII is optimally calculated for both power sources and transmission grids according to the criteria of minimizing the cost of the entire power system.
The power source development program ensures optimization, enhances the autonomy of each region, and creates a balance between supply and demand within the region. Thoroughly grasping the viewpoint set out in Resolution No. 55 of the Politburo "...prioritize the development of gas power, have a roadmap to reduce the proportion of coal power in a reasonable manner", Power Plan VIII has closely followed the above goals in process of construction and completion, comprehensively assessing the impacts on ensuring electricity supply security when considering the gradually decreasing rate of coal-fired power sources.
Renewable energy in general and wind power projects in particular continue to be encouraged to develop in Power Plan VIII from the perspective of being consistent with the scale of the power system in each period, avoiding the rate of energy deficit. Too high input into the electricity system causes operational difficulties, increases total social investment costs and increases retail electricity prices.
Minister Nguyen Hong Dien worked with the General Director of the United Nations Industrial Development Organization (UNIDO)
Identify new growth drivers
2022 is considered a pivotal year for the 2021-2025 period. Please share with the Minister more specific and necessary steps of the Ministry of Industry and Trade to innovate the growth model towards strengthening the application of science and technology. technology, innovation?
Minister Nguyen Hong Dien: The Draft Project to restructure the Industry and Trade sector for the period 2021-2030, in addition to overcoming the shortcomings of the previous period, has added tasks to meet the development requirements of the period. new, especially the tasks to overcome the industry's internal weaknesses are revealed more clearly in the context of the COVID-19 pandemic with 5 strategic contents:
Firstly, identify new growth drivers of the Industry and Trade sector, increase resistance to external "shocks" and effectively exploit the integration process.
The priority focus is on developing foundation industries to master the production sector, especially materials for export industries and improving production autonomy; Developing the smart manufacturing industry is a breakthrough to form new production capacity associated with science and technology, innovation and digital transformation.
Developing clean energy and renewable energy; Form large energy centers according to the competitive advantages of localities; Developing a synchronous, competitive, transparent energy market system, diversifying ownership forms and business methods to mobilize the economy's resources, especially socialized resources for development branch.
Promoting the strengths of the domestic market to strengthen internal resources is a decisive factor associated with expanding external markets, in which e-commerce is identified as an important growth driver of the digital economy.
Second, we focus on improving productivity, quality, added value in production, export and industry competitiveness. Focusing on developing the digital economy and digital transformation, applying science and technology, innovation and high-quality human resources is the basic foundation to improve productivity, quality, added value and productivity. industry competitiveness.
Third, focus on upgrading and developing supply chains and value chains of industries based on comparative advantages at the national, regional and local levels to increase added value and strengthen capacity. autonomy of the Industry and Trade sector.
Fourth, form a system of large corporations and enterprises with brands and global competitiveness associated with strengthening competition management and anti-monopoly.
Fifth, the policy of "greening" the Industry and Trade sector will be implemented towards sustainable development. Focus on developing green industry and promoting industrial greening; Focus on developing renewable energy, clean energy and ensuring economical and efficient production, distribution and use of energy; promote green consumption and circular economy development.
Thank you Minister!
According to Industry and Trade Magazine