Bright spots from many industries
Rice is one of the bright spots in the export picture of 2023. According to the General Department of Customs, by the end of the first half of December, Vietnam had exported more than 7.9 million tonnes of rice, worth more than 4.5 billion USD, a year-on-year increase of 11% in volume and 29% in value.
This result was higher than the previous forecast of about 7.1 million tonnes of rice exported for the whole year and nearly equal to the prior estimate of the Ministry of Industry and Trade at about 8 million tonnes of rice, with a turnover of about 4.5 billion USD.
With this momentum, experts estimate that by 2023, rice exports could reach 8.2 million tonnes, with a turnover of nearly 4.8 billion USD, reaching the highest level since 1989, when Vietnam started exporting rice.
Previously, Vietnam's record export rice output was only about 7.1 million tonnes in 2011 and 2022.
According to the Ministry of Industry and Trade, total import-export turnover was estimated at 683 billion USD in 2023, including 354.5 billion USD from exports and 328.5 billion USD from imports.
With such results, the country's trade balance has continued to record a trade surplus for the 8th consecutive year, with an estimated surplus of nearly 30 billion USD, an increase of almost three times compared to 2022, positively contributing to the balance of payments and helping to increase foreign exchange reserves, stabilising exchange rates and other macroeconomic indicators. This has also been a record trade surplus for many years.
The record trade surplus result is considered one of the bright spots of foreign trade activities. Since the beginning of the year, the imports and exports have faced numerous difficulties. The export industry, one of three important trivet legs of economic growth (investment, export and consumption), witnessed a double-digit negative growth since the first quarter of 2023, with a decrease of up to 11.9 % compared to the same period last year. In addition, several importing countries have high requirements for sustainable development and environmentally friendly production, so Vietnamese products must compete more fiercely.
In that context, the ministries, including the Ministry of Industry and Trade, and businesses and associations, have made great efforts to push import and export activities "to the target" of 2023. Therefore, although the exports of goods in 2023 did not meet the set target, the positive achievement was that exports regained continuous growth momentum in the last seven months after a period of deep decline. In particular, from July to the end of the year, the country's export turnover reached more than 30 billion USD per month.
Tran Thanh Hai, Deputy Director of the Import-Export Department under the Ministry of Industry and Trade, affirmed: “In the import-export picture of 2023, the exports of many commodities still achieved high results, including vegetables and rice. This is also a positive result, demonstrating the enterprises’ efforts in expanding markets and recovering export activities."
With fruits and vegetables commodity, the Vietnam Fruit and Vegetable Association forecast that fruit and vegetable exports in 2023 were expected to reach a record 5.6 billion USD.
According to General Secretary of the Vietnam Fruit and Vegetable Association Dang Phuc Nguyen, over the past years, the State, Government and Ministries have made efforts for negotiations to expand the market and sign many agreements and protocols with China and other countries towards creating favourable conditions for Vietnam’s agricultural products, vegetables and fruits, to be widely consumed around the world. In addition, Vietnamese farmers and businesses have been increasingly guided on how to grow crops that meet international standards and the requirements and tastes of importing countries.
 |
Green exports will be promoted in key export industries in 2024. |
Opportunities for imports and exports in 2024
In 2024, the economy is expected to recover, and opportunities for exporting goods will be expanded. However, difficulties are still great, especially in the context of markets increasingly tightening regulations on quality standards. The trend of trade protection has appeared more. Some countries pull investment back domestically, erecting trade barriers to protect and promote their production.
Therefore, for import and export to truly bring the most positive effects to the economy, it is essential to shift from a processing and assembly industry to a highly localised industry with high technology content, said Former Deputy Director of the Industry and Trade Information Centre, under the Ministry of Industry and Trade, Le Quoc Phuong. It is necessary to promote exports in areas that create large added value. For example, in agriculture, the processing activities should be boosted to increase added value.
Besides, it is necessary to focus on promoting export commodities of strength, such as agricultural products. At the same time, special attention should be paid to quality. Particularly for seafood exports, great efforts should be made to actively remove the European Union's yellow card. If this issue cannot be resolved, the exports of seafood, one of Vietnam's strongest commodities, will be restricted.
The Ministry of Industry and Trade will promote solutions for green exports to find a more sustainable and effective direction.
Vu Ba Phu, Director of the Trade Promotion Department under the Ministry of Industry and Trade, said that green transformation is an inevitable trend, therefore, the Ministry has been focusing on three groups of work to support enterprises, industries and localities in 2024 and following years.
The Ministry also developed a set of indexes on trade promotion capacity, and in the near future, that set of indexes will be supplemented with indicators on green transformation in trade and export promotion. The Government has also issued a programme related to completing the legal framework from the 2023-2027 period. Accordingly, the ministries and agencies have also developed programmes to perfect the law related to green transformation and production activities related to circular economy and responsible business for 2023-2027.
To develop export markets, along with trade promotion, the Ministry of Industry and Trade will carry out many measures to promote negotiations and signing of new trade links, free trade agreements and trade agreements with other potential partners (such as UAE and MERCOSUR), to diversify markets, products, and supply chains.
In addition, the Ministry will continue to support businesses to take advantage of commitments in free trade agreements, especially CPTPP, EVFTA, and UKVFTA, to boost exports through the propaganda of rules of origin and issuance of Certificates of Origin, the opportunities and ways to take advantage of opportunities from agreements.
The Ministry of Industry and Trade will also work with the Ministry of Agriculture and Rural Development to negotiate with China to open more export markets for other Vietnamese fruits and vegetables, such as green-skinned grapefruit, fresh coconuts, avocados, pineapples, lemon and melon. The Ministry will improve efficiency and regulate the speed of customs clearance at the border gates between Vietnam and China, especially for seasonal agricultural products and seafood, as well as move quickly and strongly to official export.
The Ministry of Industry and Trade set a target of increasing total export turnover in 2024 by over 6% compared to 2023, and the trade balance continues to have a trade surplus. With the proposed solutions and the efforts by businesses, it is expected that the trade surplus figure for 2024 will not only be impressive but will also contribute even more to sustainable economic growth.
