Vietnamese exports gradually show positive signs in remaining months

According to the General Statistics Office (GSO), August saw the total import-export turnover stand at an estimated US$60.92 billion, up 6.7% over the previous month, thereby bringing total import-export turnover over the past eight months to US$435.23 billion.

Most notably, the last four consecutive months has seen the export turnover increase at a higher rate compared to the previous month. This shows that businesses' trade promotion and market search solutions have brought about positive results.

However, due to a steep fall occurring in the first months of the year, the eight-month export turnover was estimated to hit US$227.71 billion, down 10% on-year.

Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association (VITAS), said that in July, textile and garment exports reached US$3.27 billion, representing an increase of 6.8% compared to a month earlier.

This is also the month that reached the highest value over the last 11 months. Textiles and garments are showing good signs of recovery in many markets. This year, the textile industry is expected to rake in an export turnover of between US$ 40 billion and US$41 billion.

Currently, textiles and garments are the nation’s fourth largest export product group behind computers, electronic products and components; Phones and components; machinery, equipment, tools, and spare parts.

Elsewhere fruit and vegetable products made a very strong breakthrough in recent times.

Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetable Association, said that fruit and vegetable export turnover in the past eight months hit an estimated US$3.5 billion, up nearly 56% over the same period from last year.

This marks a record high for the fruit and vegetable industry. Among them, durian has risen to become the most important export product.

Among the fruit and vegetable groups, durian and dragon fruit make up the fruits which have significantly contributed to this growth.

In particular, eighth-month durian exports account for 30% of total fruit and vegetable export turnover.

This year will likely seek fruit and vegetable exports reach the historic milestone of US$5 billion. In addition, the nation has officially exported official sweet potatoes to the Chinese market, thereby creating added momentum for the growth of this industry moving forward.

Le Hang, communications director of the Vietnam Association of Seafood Exporters and Producers (VASEP), forecasts that by the end of the year seafood exports will fetch roughly over US$9 billion, down 15% to 16% compared to 2022.

Regarding Tra fish (pangasius) exports, Hang stated that amid major markets such as the United States, the EU, and China facing difficulties, finding more opportunities in small markets can be considered a hope for pangasius exporters.

According to Hang, the export of Tra fish to several small markets is growing well. This can be seen as hope for pangasius enterprises amid facing difficulties in traditional large markets.

The VASEP expects that the Chinese market will recover better in demand, thereby helping pangasius exports be higher than the first half of the year. Therefore, it is forecast that exports of these products for 2023 may reach US$1.7 billion.

Exports likely to resume growth in final quarter

Regarding export prospects ahead in the remaining months of the year, Nguyen Thao Hien, deputy head of the European - American Market Department under the Ministry of Industry and Trade, said that the rate of export turnover reduction has slowed down. In the coming time, it is anticipated that exports can recover their growth momentum in the fourth quarter.

Besides, free trade agreements (FTAs), such as the UK joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) Agreement, will open up plenty of new opportunities for Vietnamese exports.

In a bid to maintain competitiveness, Tran Minh Thang, head of the Vietnam Trade Office branch in San Francisco (USA), said that Vietnamese enterprises must continuously optimise production to maintain competitive prices, produce high quality and creative products, create differences, apply advanced technology to production, as well as responding faster and more flexibly to market needs and consumer preferences.

Practicing sustainable and socially responsible production plays a huge role in demanding markets such as the US, he noted.

Do Viet Ha, a representative of the Vietnam Trade Office in the German market, highlighted major opportunities which serve to bring Vietnamese goods into Germany, noting that German consumers are willing to use high-quality products with competitive prices from developing countries.

Vietnam has many products which Germans has high demand for, such as wooden furniture, garments, textiles, footwear, coffee, and tropical fruits and vegetables. In addition, the Central European country is gradually separating its dependence on China for goods and is in the process of looking for more suppliers from Vietnam.

To Ngoc Son, head of the Asia-Africa Market Department under the Ministry of Industry and Trade, said that to fully exploit the market, local businesses need to build brands, promote products, and position products in each segment, apply advanced technology in processing, packaging and preserving products, as well as to diversify forms of trade promotion.

This should be done alongside actively researching technical standards and barriers of markets, thereby ensuring complete records, paying attention to green consumption requirements, and researching new and potential markets, he added.