Production of key commodities slows down, May exports decline

Hanoi (VNA) – The production and export of some processing industrial products slowed down in May, affecting the overall exports of the industry.

Many key staples report decreases

According to a report by the Ministry of Industry and Trade, the country's export turnover in May was estimated at 30.48 billion USD, down 8.5% from the previous month, but up 16.4% over the same period last year.

However, in the first five months of 2022, the export value was estimated at 152.96 billion USD, up 16.4% over the same period last year.

In the period, the export turnover of industrial processing products maintained an important contribution to the total export growth rate with an estimated value of 131.39 billion USD, up 16% compared to that of the same period last year, and accounting for 85.9% of the total export turnover.

However, in May alone, the export of this group of commodities fell by 9.1% month-on-month, mainly due to decreases in export turnover of some key commodities, such as phones and components (27.5%); computers, electronic products and components (6%).

At the same time, the export turnover of several other strategic items reported only slight increases, such as footwear (1.5%), and electric wire and cable (2.1%), leading to a reduction in the overall export turnover of processing and manufacturing industries.

On the contrary, the export of agricultural, forestry and aquatic products recorded positive results. The export value of this group was estimated at 13.08 billion USD, up 20.3% over the same period last year, and accounting for 8.55% of total export turnover, making it a bright spot in the country's export picture.

During January-May, 26 groups of commodities posted an export value of over 1 billion USD each, with six bringing back over 5 billion USD, in the first five months of 2022. Together they accounted for 89.6% of the country’s total exports, of which the manufacturing industry accounted for 88.6% (down 0.5% year-on-year), seafood 3.1% (up 0.6%) and agricultural and forestry products 6.9% (down 0.5%).

The US remains Vietnam's largest export market with an estimated turnover of 46.7 billion USD, up 21.8% year-on-year. It was followed by China with 22.17 billion USD, up 9.2%; the European Union with 19.7 billion USD, up 21.7%; and ASEAN with 13.9 billion USD, up 20.1%.

Creating momentum from FTAs

Due to high prices of strategic and essential commodities such as petrol, gas, and production materials like coal, wood, fertiliser, titanium, and aluminum, the total import turnover of the country surged.

According to the Ministry of Industry and Trade, Vietnam’s import turnover in May was estimated at 32.2 billion USD, up 12.9% year-on-year, bringing the total value in the first five months of this year to 152.16 billion USD, up 14.8% against that of the same period last year.

Up to 89% of the country’s total import turnover in the period came from materials serving the domestic production, with 135.3 billion USD, up 16.1% year-on-year.

The country also posted a trade surplus of 516 billion USD in the period. This largest surplus was with the European Union with 13.4 billion USD, a 43.6% increase year-on-year, but a trade deficit of 27.1 billion USD with China, 17.9 billion USD with the Republic of Korea and 6.5 billion USD with ASEAN.

Deputy Minister Tran Quoc Khanh said that Vietnam has signed a lot of free trade agreements (FTAs) and businesses are effectively taking advantage of these deals for export activities. Between January and May, the country’s exports to the EU jumped by 22% and to ASEAN by 20%.

Khanh said that his ministry will continue to support businesses with market information and export promotion, and help them take advantage of commitments in signed FTAs and through global value chains to find new markets.

He also requested relevant departments and agencies to closely monitor the fluctuations of the international situation, proactively assess the impacts of those events on Vietnam's production, import and export in order to keep up with the current situation, and have appropriate adjustment and response, and assistance for associations and businesses./.