Processed products remain the main export group of the country in the first four months of 2023 (Photo: VietnamPlus)
Hanoi (VNA) – The Ministry of Industry and Trade (MoIT) will support domestic businesses to connect with Vietnam’s trade offices abroad towards jointly seeking solutions to boost exports in a more effective and sustainable manner in the coming time.
Statistics of the MoIT show that the export-import value in the first four months of this year was estimated at 210.79 billion USD, down 13.6% year-on-year, with a trade surplus of 6.35 billion USD. The export turnover decreased by 11.8%, while the import fell by 15.4%.
Despite enjoying the 6.35-billion-USD trade surplus, the sharp decline in double digits, especially in both export and import, clearly showed difficulties in the production and export activities of businesses.
Major commodity groups see falls in export
According to the MoIT, during the first four months, Vietnam exported about 108.57 billion USD worth of goods, a year-on-year drop of 11.8%, of which the domestic economic sector contributed 25.58 billion USD, down 11%.
As many as 20 items joined the billion-USD club, making up 83.8% of the total export turnover.
In April alone, the import-export turnover stood at 27.54 billion USD, down 7.3% from the previous month, and 17.1% from the same period last year.
It can be seen that the decline came from the main commodity groups.
The export of agro-forestry aquaculture products reached an estimated 9.68 billion USD in the last four months, down 4.8% over the same period last year. Meanwhile, the fuel and mineral group recorded a decrease of 17.8% in export turnover.
Notably, with a total export value hitting 91.16 billion USD, the manufacturing group accounts for over 85% of the total export turnover of the country. However, this group is facing many difficulties due to the declining demand in countries around the world.
Many items in this group witnessed sharp falls in export value, such as phones and components decreasing by 17.3% year-on-year; computers, electronic products and components (8.9%); footwear (16.3%); wood and wood products (31.3%), and textiles (19.3%).
Photo: Workers of Ha Tay Chemical Textile Co., Ltd produce shoes for export. (Photo: VietnamPlus).
Le Tien Truong, Chairman of the Vietnam National Textile and Garment Group (Vinatex), predicted that businesses may see an improvement in the number of orders but they will continue to face difficulties in selling prices due to high costs.
Workers of Ha Tay Chemical Textile Co., Ltd produce shoes for export. (Photo: VietnamPlus)
Promoting trade promotion activities to strengthen export
The MoIT attributed the fall in production and export in the first months of the year to high inflation rates in many countries, especially in Vietnam’s main export markets such as the US and the European Union; and decreasing global demand, particularly for non-essential consumer goods.
Increased costs of raw materials, labour, and transportation have also reduced the competitiveness of Vietnamese goods, the ministry said.
Nguyen Ngoc Thanh, Deputy Director of the Department of Industry under the MoIT advised businesses to work hard to seek new export opportunities and orders, and meet"green" standards of export markets.
Businesses enhance trade promotion activities to expand export markets. (Photo: VietnamPlus)
The department will continue to monitor and coordinate with businesses and sectors to come up with solutions in the near future, including related policy recommendations to address difficulties facing businesses, Thanh said.
He suggested businesses strengthen negotiations and take advantage of signed free trade agreements (FTAs) to expand export markets and promote trade promotion activities.
The ministry will support domestic businesses to connect with Vietnam’s trade offices abroad to seek ways to solve difficulties and obstacles, thus strengthening export in a more effective and sustainable manner, Thanh said./.
