Hanoi (VNA) -The capital city plans a 4-5 percent export growth compared with last year. The ambitious target wasset despite difficulties faced by key export products, such as electronics,agricultural products, textiles and garments, due to the negative impact ofreduced global consumption and the shock waves of Brexit on the Europeaneconomy, which is a large export market for Vietnam. According to the HanoiStatistics Department, although the city made efforts to increase exports lastyear, they only reached 10.6 billion USD in 2016, a year-on-year increase of1.5 percent, far from the target growth rate of 7-8 percent. The export ofcomputer components and peripheral devices earned 1.29 billion USD, 2.7 percentless compared with 2015. The department’sdirector, Le Hong Thang, attributed the drop in export turnover to theadjustment of the VNĐ/US dollar exchange rate and the euro,yen and yuan were devalued by 18 percent, 17 percent and 8 percent,respectively, to stimulate export and minimise import.  Thang said this hadraised the price of raw materials and reduced consumption in the city’s exportmarkets. Although banks lowered loan interest rates to 8 percent, they werestill 2-4 times higher than loan rates in competing export countries. Under fierce competitionpressure in the context of globalisation and with the participation in freetrade agreements (FTA), only capable businesses will be able to maintainoperations. This is also an opportunity to wipe out weak companies, Thang said. According to experts,exports from Vietnam and its capital city will continue experiencingdifficulties this year, but companies that take advantages of the FTAs withSouth Korea, the EU and the Eurasian Economic Union, will have an opportunityto increase trade growth. Tran Thanh Hai, Deputy Headof the Ministry of Industry and Trade’s Export-Import Department, said that inorder to maximise FTA advantages, businesses must seek out bigger market sharesof their goods. Under the export planfor the 2016-20 period, with a vision to 2025, the city’s industry and tradesector will strengthen promotion activities, provide businesses with moreinformation on markets and export products, Hai said. The city will opentraining courses for businesses to inform them of policies and regulations inVietnam and other countries in the world. The information is designed to meetinternational commitments and overcome trade barriers. The decisive factor inincreasing competition capacity is applying advanced technologies, which willhelp business improve goods and service quality and reduce costs, said Hai.-VNA