TRADE FACILITATION, VALUE CREATION, Public Disclosure Authorized AND COMPETITIVENESS: POLICY IMPLICATIONS FOR VIETNAM'S ECONOMIC GROWTH VOLUME 2 Duc Minh Pham Public Disclosure Authorized Deepak Mishra Kee-Cheok Cheong John Arnold Anh Minh Trinh Huyen Thi Ngoc Ngo Hien Thi Phuong Nguyen July 15, 2013 Public Disclosure Authorized Public Disclosure Authorized TTEE FOR MI IN M T O E C R N L A NATIONAL COMMITTEE A T N I O O N I T A A L FOR INTERNATIONAL N E C N ECONOMIC COOPRATION O O N TI OM A IC COOPER TRADE FACILITATION, VALUE CREATION, AND COMPETITIVENESS: POLICY IMPLICATIONS FOR VIETNAM'S ECONOMIC GROWTH VOLUME 2 Duc Minh Pham Deepak Mishra Kee-Cheok Cheong John Arnold Anh Minh Trinh Huyen Thi Ngoc Ngo Hien Thi Phuong Nguyen EE FOR ITT INT M ER M N O A T C IO L NATIONAL COMMITTEE N A A N L O I T A FOR INTERNATIONAL THE WORLD BANK N E ECONOMIC COOPRATION C N ON IO O AT MIC COOPER Standard Disclaimer: This volume is a product of the staff of the International Bank for Reconstruction and Development/ The World Bank. 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Cover photo: Supply Chain Vietnam ii POLICY IMPLICATIONS FOR VIETNAM’S ECONOMIC GROWTH TABLE OF CONTENTS List of figures .....................................................................................................................................................................................v List of tables......................................................................................................................................................................................vi List of boxes......................................................................................................................................................................................vi Foreword...........................................................................................................................................................................................vii Acknowledgements.......................................................................................................................................................................ix Guide to the Report .......................................................................................................................................................................xi Abbreviations and Acronyms...................................................................................................................................................xiii Chapter 1: Textiles and Garments .............................................................................................................1 1.1 Introduction................................................................................................................................................................................1 1.2 Production and Trade..............................................................................................................................................................1 1.3 Structure of the Garment Industry.....................................................................................................................................4 1.3.1 Transportation................................................................................................................................................................6 1.3.2 Forecast for Garment and Textile Export ..............................................................................................................8 1.3.3 Forecast for Import of Raw Materials/Inputs for the Garment and Textile Industry .............................9 1.3.4 Forecast for Export Markets.......................................................................................................................................9 1.3.5 Forecast for Transport System ..................................................................................................................................9 1.4 Development Strategies......................................................................................................................................................11 1.5 Strategy Implementation ....................................................................................................................................................12 Chapter 2: Footwear.................................................................................................................................15 2.1 Introduction .............................................................................................................................................................................15 2.2 Production and Trade ...........................................................................................................................................................15 2.3 Structure of the Footwear Industry .................................................................................................................................18 2.3.1 Transportation..............................................................................................................................................................20 2.3.2 Forecast of Footwear Export...................................................................................................................................23 2.4 Development Strategies......................................................................................................................................................26 2.5 Strategy Implementation ....................................................................................................................................................26 Chapter 3: Electronics and Electrical Equipment ..................................................................................29 3.1 Introduction .............................................................................................................................................................................29 3.2 Production and Trade ...........................................................................................................................................................29 3.3 Structure of the Electronics Industry ..............................................................................................................................31 3.3.1 Transportation..............................................................................................................................................................33 3.3.2 Forecast for Export of Electronics and Electrical Equipment ......................................................................35 3.3.3 Future Export Markets...............................................................................................................................................35 3.3.4 Future Imports .............................................................................................................................................................35 3.3.5 Future Transport Routes...........................................................................................................................................36 3.4 Development Strategies......................................................................................................................................................37 3.5 Strategy Implementation ....................................................................................................................................................38 Chapter 4: Rice..........................................................................................................................................39 4.1 Introduction .............................................................................................................................................................................39 4.2 Vietnam in the Global Rice Market...................................................................................................................................39 4.2.1 Key Exporters................................................................................................................................................................41