Vietnam takes measures to stem export downturn

Vietnam’s exports in September fell 0.8% against the previous month but the figure for the first nine months of 2021 still rose 18.8% over the same period last year.

Manufacturing at Ching Luh Vietnam at the Thuan Dao Industrial Park in Long An Province (Photo: Viet Chung)

As strict restrictions have been in place in many localities throughout the country, such figures demonstrate the strong efforts of the business community.

According to the report of the Ministry of Industry and Trade, the group of processed industrial products continues to play an important role, contributing to the overall export growth of the country when accounting for 86.27% of the total turnover. In the past nine months, the export turnover of this group of goods was estimated at 207.5 billion USD, increasing by 20.8% over the same period. In which, many items have contributed greatly to export growth such as: iron and steel of all kinds estimated at 8.23 ​​billion USD, increasing by 125.4%; machinery, equipment, tools and spare parts was estimated at 26.25 billion USD, increasing by 44.5%; computers, electronic products and components were estimated at 36.4 billion USD, increasing by 13.1%; phones and components were estimated at 41.33 billion USD, increasing by 12.4%... over the same period. Many items, despite a decrease in export volume, still achieved high growth in turnover, showing a positive shift in the value of goods such as wood products, decreasing by 35.3% in volume, but increasing by 30.9% in turnover (estimated at 11.14 billion USD); textiles and garments decreased by 18.6% in volume, but increased by 5.8% in turnover (estimated at USD 23.46 billion) or footwear of all kinds also decreased by 44.2% in volume, but still increased by 9.8% in turnover (estimated at 13.33 billion USD).

Another bright spot was the return of trade surplus, standing at US$500 million in September after the continuous deficit since April. However, Vietnam still recorded a trade gap of US$2.03 billion during the nine-month period, compared to a surplus of US$16.66 billion last year.

“When compared to the nine-month export revenue of US$242.65 billion, the gap is equivalent to 0.8%, which is not too big, and there are still three months to improve the situation”, said Tran Thanh Hai, Deputy Head of the MOIT’s Agency for Foreign Trade.

He added that if there are no major deteriorations in the virus situation until the end of the year, enterprises, especially those in the south will regain the growth momentum and Vietnam will be able to achieve a trade balance or even a surplus.

According to Deputy Minister of Industry and Trade Do Thang Hai, Vietnam's export activities have certain advantages when we are effectively exploiting free trade agreements (FTAs) and market demand is increasing on this occasion. year-end shopping, especially with advantageous product groups. It is expected that Vietnam's exports in 2021 will grow by more than 10%, higher than the target assigned by the National Assembly and the Government. However, the epidemic is still complicated in Ho Chi Minh City and southern provinces, causing many difficulties in the production, import and export activities of enterprises.

The MOIT is working on measures to reinforce and expand export markets, firstly capitalizing on the recovery of the US and European markets to promote Vietnamese strengths, such as garments, footwear, electronics, timber products and seafood, for the year-end shopping season.

In addition, the ministry is renovating its trade promotion activities through online channels and new platforms so as to export agricultural products to South Asia while also ensuring stable exports to established markets such as China, Japan and the Republic of Korea. The MOIT is also stepping up efforts to develop further and more demanding markets such as Europe, the US and Australia as well as those with plenty of room for growth in East Europe, North Europe and Latin America.