High trade surplus stabilises macro economy to year-end

Businesses speed up production, capitalising on chances to bolster exports (Photo: VietnamPlus)

Hanoi (VNA) - A representative of the Ministry of Industry and Trade (MoIT) said that export turnover in 2022 could burgeon to 800 billion USD, maintaining the trade surplus proportion of 7-8 percent set by the National Assembly and the Government.
   
Import-export turnover hit nearly 500 billion USD in the first eight months of this year, of which exports neared 251 billion USD, up 17.3% over the same period last year, bringing trade surplus to about 3.96 billion USD.
 
Processing industrial products accounts for the lion’s share, some 89 percent of exports and production materials 94 percent of imports in the past eight months. This serves as ‘leverage’ to keep export turnover on the rise.

Speaking of reasons for double-digit growth of 17.3 percent in export and 13.6 percent in import turnover, respectively, Tran Thanh Hai, Deputy Director of the Agency of Foreign Trade under the MoIT, explained that Vietnam had promptly resumed economic activities in the fourth quarter of 2021.

He added that the manufacturing and service sectors fulfilled global market demand in the first half of this year, thereby speeding up exports.
 
In addition, opportunities brought by free trade agreements helped Vietnamese commodities, particularly agro-forestry-fishery products, enter export markets, Hai underlined. 
 
Vietnam recorded a trade deficit of more than 3 billion USD in the same period last year but a trade surplus of nearly 4 billion USD at present. This a good sign amid the negative impacts of economic crises and inflation in some major markets. Exchange rate fluctuations may affect export-import activities and consumer demand declines in such markets.
 
The fact that Vietnam enjoyed a trade surplus of nearly 4 billion USD in the first eight months of this year contributed to stabilising the macro-economy and this is projected to be a driving force for trade activities in the remaining months of 2022. 
 
He went on the stress that challenges and risks remain in the country’s quest to achieve export-import turnover of 800 billion US and maintain a trade surplus rate of 7-8 percent. This is especially so with the ongoing Russia-Ukraine conflict that may disrupt the supply chain. Crises in some markets may deliver a blow to demand and hinder shipments of Vietnamese products. 
 
At the moment, some sectors are recording positive growth, including garment-textiles. This sector is hoped to make breakthroughs and obtain export-import turnover of about 45 billion USD this year.

However, crisis and inflation in some markets may pose risks to both garment-textile and consumer goods as they belong to the groups of inessential products.

Regarding human resources, Hai said that many firms face difficulties in recruitment and asking labourers to resume work. Therefore, workforce maintenance amid increasing exports truly is a major challenge to businesses.
 
Furthermore, firms are advised to devise plans in response to uncertainties in markets triggered by pandemic and disruptions, among others, especially to year’s end.
 
In particular, bottlenecks have been removed for farm produce exports to China, and many markets have opened their doors to Vietnamese products, as well as meeting quality and food safety requirements.
 
Of note, the northern neighbour has allowed the import of durian and passion fruits grown in Vietnam. At the same time, exports of rice, aquatic products, coffee and pepper also recorded growth.

At present, State management agencies have worked to assist businesses in respective sectors. 
 
The MoIT has asked trade offices to actively support firms to recover and promote traditional trade promotions, increase the presence of Vietnamese products at global fairs and arrange trade exchange delegations, and more. 
 
Besides, it has strived to seek new partners to help Vietnamese businesses capitalise on free trade agreements that Vietnam is a signatory of, the official emphasised./.