Vietnamese exports confident of acceleration in coming months

Monday, 2021-07-12 11:17:15
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Vietnam exported US$157 billion worth of goods in the first half of 2021, up 28.4% year on year.
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NDO - With the pandemic gradually coming under control at major industrial parks in the north and growing demand from foreign markets, Vietnamese enterprises have plenty of opportunities to accelerate exports to offset the shortfall from previous months.

Increasing orders

Recently, more than three tonnes of GlobalGAP-certified Bac Giang lychees were shipped by the Vo So e-commerce platform to Germany through Frankfurt Airport. The lychees met all local quality and safety standards and were delivered to Vietnamese people in Germany and the Czech Republic.

It is the first time that Vietnamese agricultural produce has been exported to the European market under the cross-border e-commerce model on a platform developed and operated by Vietnam. The event not only added to the achievements that Vietnamese lychees have recorded but also contributed to Vietnam’s overall export performance in 2021.

In the garment sector, many foreign companies have relocated their supply chains to Vietnam from India, which has been hit hard by the pandemic, said Pham Van Viet, General Director of Viet Thang Jeans, adding that increasing global demand has helped many Vietnamese enterprises to be able to secure orders until the end of 2021.

In addition to Viet Thang Jeans, other companies in the garment and footwear industries are also receiving positive signals from the US, EU, Japan and the Republic of Korea with export orders for the third quarter and even the fourth quarter, according to a report by the Ministry of Industry and Trade (MOIT). US and European consumers are increasing their spending on consumer goods such as clothes and shoes as their economies are recovering along with the gradual lifting of restrictions.

At the same time, the imposition of social distancing measures in other countries and the increased use of online technology are helping to drive up the export of computers and electronic products. Accordingly, the electronics sector is expected to continue growing, with the export of computers, computer parts and electronic devices projected to reach up to US$54 billion, up 20% from the previous year.

According to the MOIT, Vietnam exported US$157 billion worth of goods in the first half of 2021, up 28.4%, while the country’s imports were estimated at US$159.1 billion, up 36.1%. As the impacts of COVID-19 on the economy remain strong, such growth figures are quite impressive.

Facilitating exports

The MOIT has projected that exports will continue to rebound in the coming months as free trade agreements are implemented in a more comprehensive and effective manner. Trade pacts such as the CPTPP, EVFTA and UKVFTA in particular will continue to facilitate Vietnamese goods to penetrate partner markets with lower tariffs.

The rising prices of exports, especially goods of Vietnam’s strengths, will also be an important boost to country’s exports. At the same time, the US and European countries are lifting their coronavirus restrictions and global commodity demand, which are opportunities for Vietnam to boost the export of its consumer goods.

However, the rise in the prices of input materials and international shipping costs is affecting the prices and competitiveness of Vietnamese exports as production materials account for more than 90% of Vietnamese imports.

Tran Thanh Hai, Deputy Director of the MOIT’s Department of Export and Import, stated that creating a stable supply of goods for export is an especially important factor.

Therefore, the MOIT is working with other ministries and agencies to restructure exports in a way that reduces resources-intensive goods with low added value and focuses on products with a high content of advanced technology and greater added value. The ministry will also give priority to energy-efficient sectors with lower impacts on the environment.

Hai stated that the best news is that, despite the impacts of the recent COVID-19 outbreaks, factories in Bac Ninh and Bac Giang have been quick to return to normal operation and are revving up production to compensate for the shortfall in the past two months.

To support exporters, the MOIT has asked agencies under its jurisdiction and Vietnamese trade missions to constantly update the COVID-19 situations in other countries that can affect trade cooperation between Vietnam and such countries, as well as recommend measures to maintain and develop export markets.