Little promise in outlook for Q2 exports to US, EU

The COVID-19 pandemic has already made it quite difficult for Vietnamese goods to enter the US and EU markets and the outlook for the second quarter is also gloomy, according to Cong Thuong (Industry & Trade) newspaper.
Little promise in outlook for Q2 exports to US, EU ảnh 1A fish processing factory in the Mekong Delta province of Dong Thap (Photo: VNA)

Hanoi (VNA) - The COVID-19 pandemic has alreadymade it quite difficult for Vietnamese goods to enter the US and EU markets andthe outlook for the second quarter is also gloomy, according to Cong Thuong(Industry & Trade) newspaper.

In the first quarter of this year, Vietnamearned 59.08 billion USD from exports, up just 0.5 percent year-on-year, whileimports stood at 56.26 billion USD, down 1.9 percent, the General StatisticsOffice (GSO) has reported.

The country therefore posted a trade surplus of2.8 billion USD compared to 1.5 billion USD in the same period last year. Manytrade experts said this in an acceptable figure given the coronavirus outbreak.

There are signs, however, that prospects in thesecond quarter will be even bleaker, especially regarding exports to the US andEU, both of which have been hit hard by COVID-19.

Bui Trong Tu, Deputy Director of the GSO’s Tradeand Services Statistics Department, said almost all export contracts Vietnamesebusinesses have struck with partners in these two key markets have beensuspended.

Exports are certain to be greatly affected ifthe pandemic continues throughout Q2, he forecast, as in addition to China, theUS and the EU are among the largest importers of Vietnamese goods, particularlytextiles, garments, and footwear, and aquatic products.

The number of apparel and footwear orders fromthe two markets fulfilled in April and May are projected to fall sharply. Neworders to be delivered in June or later, meanwhile, haven’t even beennegotiated.

Wood processing companies said if the situationsurrounding the pandemic does not improve by the end of April then some willhave to cut production by 70 percent.

If the outbreak remains during the secondquarter, most will have to cease production for export contracts. Only a few producingwooden items for sale on the domestic market will be able to sustain operations,but only at 10-15 percent of capacity.

In the electronics industry, Samsung ElectronicsVietnam has reported that the US and EU account for more than 50 percent of itsexport value. Global revenue for Samsung Electronics this year is likely todecline, and it may have to revise its export target to about 45.5 billion USD,compared to an actual 51.38 billion USD in 2019.

Meanwhile, switching the shipment of keyproducts to other markets such as India, the Republic of Korea, and Japan cannotbe done overnight, and it will be difficult to compensate for losses incurredas exports to the US and the EU tumble, the Cong Thuong newspaper noted.

Given this, businesses are pinning their hopeson the US and EU controlling the pandemic, especially given the EU-Vietnam FreeTrade Agreement (EVFTA) is set to take effect this year.

An increase of 20 percent in exports this year wasnot unrealistic under the agreement, according to GSO General Director NguyenBich Lam, with the greatest beneficiary being aquatic products./.
VNA

See more

Executive President of the China - ASEAN Business Council (CABC) Xu Ningning. (Photo: VNA)

Broader space for Vietnam - China cooperation: Chinese expert

By working together on new challenges and business opportunities, the prospects for cooperation between China and Vietnam will be even broader, and there will certainly be more space for development, said Executive President of the China - ASEAN Business Council (CABC) Xu Ningning.

Illustrative image (Photo: VNA)

Vietnam, Algeria forge stronger economic bonds

The Vietnam Trade Office in Algeria held a meeting with representatives from several Algerian trade promotion organisations and businesses on January 15 to look back on bilateral trade and chart a course for future collaborations.

Swiss-Viet Economic Forum members (Photo: VNA)

Swiss-Viet Economic Forum helps boost bilateral collaboration

The Swiss-Viet Economic Forum (SVEF) set goals for 2025, focusing on continuing to serve as a bridge to strengthen economic and cultural relations between the two countries at an event on January 15 to celebrate the first anniversary of its establishment.

Workers at a Taiwanese company in An Duong industrial part, Hai Phong city. (Photo: VNA)

Hai Phong, Quang Ninh attract 7.82 billion USD in FDI in 2024

With 7.82 billion USD in foreign direct investment lured in 2024, the port city of Hai Phong and the northeastern province of Quang Ninh continued affirming their strong attraction as the two pillars of the northern economic triangle, that includes Hanoi.

TPBank secures 120 million USD loan from JICA. (Photo courtesy of JICA)

TPBank secures 120 million USD long-term loan from JICA

The Japan International Cooperation Agency (JICA) officially signed a loan agreement with the Tien Phong Commercial Joint Stock Bank (TPBank) under the Private Sector Investment Finance (PSIF) project on January 14.

Kim Long Motor Hue JSC and Changan Automobile Group sign a cooperation agreement on building a factory. (Photo: VNA)

New passenger car factory to be built in Hue

Kim Long Motor Hue Joint Stock Company and Changan Automobile Group (China) on January 14 signed a cooperation agreement to build a passenger car factory at an industrial park in the central city of Hue that will be capable of producing 50,000 vehicles per year.