Aug 24, 2021 / 17:50

Vietnam tightens trade activities of strategic products

Given the current Covid-19 impacts on the economy, closer supervision on products having significant impacts on the economy is required.

Local producers and business associations of strategic products, including steel, fertilizer, coal, or petrol and gas are instructed to prioritize meeting domestic demand before turning to exports.

 Production at Siam Steel Vietnam. Photo: Hai Linh

The move is part of directive No.10 that was recently signed off by the Minister of Industry and Trade (MoIT) Nguyen Hong Dien on tightening import-export activities of strategic products to meet local demand and production.

The minister added the move is necessary given the current impacts of Covid-19 on the economy, for which the MoIT suggested closer supervision is required for key products having significant impacts on the economy, including petroleum products, coal, steel, or fertilizers.

For instance, imports of petroleum products, coal, or rice have been surging recently despite the high level of local production capabilities to meet domestic demand.

On the contrary, there are products with high local consumption demand such as steel or fertilizer that are currently being prioritized for exports, in turn affecting the supply-demand balance and subsequently market prices.

Dien called for local manufacturers to step up productions of those items that are in high demand, especially coal, fertilizer producers, and petroleum distributors are requested to prioritize domestic markets.

In the coming time, the MoIT would review the management of rice, sugar, and fertilizer exports noted Dien.

For petrol and gas products, Dien expected better utilization of domestic supplies for local consumption, along with heightened supervision on product quality.

According to Dien, there should be appropriate trade protection measures in place to support domestic production, which stay in line with efforts to combat counterfeit products, trade frauds, or violations of intellectual property rights.