Vietnam to see export growth as global demand recovers
Global demand for goods is recovering and this is an opportunity for Vietnam to boost its exports of consumer and industrial products, according to the Ministry of Industry and Trade (MoIT).
The ministry forecasts that Vietnam’s import and export activities will continue to increase in the coming months as free trade agreements (FTAs) are gradually being implemented in a more comprehensive and effective manner.
Those agreements will continue to create conditions for Vietnamese goods to enter to partner markets with preferential tariffs, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), EU-Vietnam Free Trade Agreement (EVFTA) and UK-Vietnam Free Trade Agreement (UKVFTA).
Besides that, export prices for many kinds of goods are also tending to increase, especially Vietnam's key export commodities, according to the ministry.
However, Deputy Minister of Industry and Trade Do Thang Hai said import and export activities may be negatively affected by the COVID-19 outbreak in many localities, especially localities in the northern region with the largest trade value such as Bac Giang, Bac Ninh and Hanoi.
Meanwhile, Asia continues to be a hotspot with a rapidly increasing number of new COVID-19 cases, causing a series of countries and territories such as India, Japan, Taiwan, Indonesia and Thailand to promote measures to control the pandemic.
"In this situation, domestic enterprises must improve competitiveness and adaptability to overcome difficulties and seize opportunities," Hai told chinhphu.vn.
The ministry has requested its agencies and departments, and Vietnam’s Trade Offices abroad, to provide updates on the COVID-19 pandemic which may affect trade and economic cooperation between Vietnam and other countries.
It has also proposed measures on maintaining and developing export markets and supporting local businesses to find and import raw materials and components for stable production of export products in the future.
For the exports of farming, forestry and seafood products, the industry and trade departments of Hanoi, Hai Duong, Lang Son, Quang Ninh and Lao Cai should consider arranging more working hours, including working on Saturdays, Sundays and holidays, based on the issuing of the certification of origin (C/O) for those export products, especially agricultural products in localities affected by the pandemic such as lychees in Bac Giang and Hai Duong provinces.
Meanwhile, the import-export departments in the northern border areas are asked to closely monitor the customs clearance of goods at the border gates and report signs of goods stuck at the border gates to the ministry.
According to the ministry, the total trade value of goods in the first five months of 2021 increased by 33.5% year on year to US$262.25 billion, although trade activities and production of export goods in May were affected by the fourth outbreak of the COVID-19 pandemic.
Specifically, in the first five months of 2021, the export value of goods was at US$130.94 billion, up 30.7% over the same period last year.
Especially, the group of 22 items with export value of over US$1 billion continued to hold stable exports, accounting for 87.3% of total export value. Of which, six items achieved export turnover of over US$5 billion.
The group of phones and components had the largest export value of US$21.9 billion, up 19.6% over the same period last year, accounting for 16.7% of total export value.
Following were electronics, computers and components (US$19.5 billion, up 26%); machinery, equipment, tools and spare parts (US$4.9 billion, up 74.8%); textiles and garments (US$12.2 billion, up 15%); footwear (US$8.5 billion, up 26.4%); and timber and wood products (US$6.6 billion, up 61.3%).
The United States continued to be Vietnam's largest export market with a turnover of US$37.6 billion, up 49.8% over the same period last year; followed by China with US$20.1 billion, up 26%.
Other large export markets of Vietnam included the EU (US$16.1 billion, up 20.8%); ASEAN (US$11.5 billion, up 23.6%); the Republic of Korea (US$8.9 billion, up 17.1%); and Japan (US$8.4 billion, up 7.7%).
The ministry also reported that import activities increased strongly in the first five months thanks to the production expansion of the manufacturing sector. That was a good sign showing the recovery of domestic consumer demand.
In the first five months of 2021, Vietnam’s import turnover of products was estimated at US$131.31 billion, up 36.4% over the same period last year.
