Record two-way trade among top outstanding events of industry, trade sector

Hanoi (VNA) - The Ministry of Industry and Trade has recently announced 10 outstanding events that make their mark on the sector’s success in 2021 – the year that Vietnam was hard hit by COVID-19.

1. Industrial production overcoming difficulties, helping exports to spectacularly exceed their target

In 2021, despite Vietnam being heavily and unprecedentedly affected by the COVID-19 pandemic, with many factories having to temporarily close their door and production being suspended for a long time, the country's industrial production still maintained a good growth rate, which was higher than that of the previous year; and its industrial production scale continued to be expanded.

The added value of the industrial sector increased by 4.82% compared to 2020, of which the processing and manufacturing industry rose by 6.37%, contributing 62.4% of the total added value of the whole economy.

Over the year, the manufacturing and processing sector contributed more than 85% of the total export value. It also accounted for 47.6% of the total newly-registered FDI capital, with 7.25% as of December 20, 2021.

2. Goods supply chain smooth during pandemic

In the context of the pandemic, the Ministry of Industry and Trade set up its steering committee for the arrangement of commodity and essential service suppliers, as well as special working groups to promptly support and maintain production and business, to help businesses deal with difficulties to prevent the disruption of production and supply chains.

The sector worked with other ministries, sectors and localities to provide basic commodities and services for production and people's life, stabilise commodity prices, and exploit commercial forms and markets, thus contributing to the sales of millions of tonnes of agricultural products for farmers in the context of social distancing.

In addition, it promptly handled problems in the circulation of goods and raw materials for production and addressed goods congestions at border gates and ports to maintain import and export activities.

3. E-commerce creating a breakthrough

Vietnam currently has a fast growth rate in terms of online retail market share, among the Top 3 in Southeast Asia.

In 2021, a series of events and activities were held for the first time on e-commerce platforms, contributing to developing both domestic and export markets.

Thousands of tonnes of agricultural products and fruits were sold on e-commerce platforms.

Notably, for the first time, the Vietnam National Pavillion, gathering the country’s typical products, was set up on the Chinese e-commerce platform JD.com.

4. Trade promotion on digital space stepped up

The Ministry directly carried out, guided and coordinated with localities in organising over 1,000 online conferences connecting demand and supply, sales and export of commodities nationwide.

It also held five online fairs and exhibitions with the participation of more than 1,000 enterprises and supported businesses in joining hundreds of international fairs and expos.

5. Reduction of nearly 17 trillion VND in power prices for consumers

In the context that complicated developments of the COVID-19 pandemic in major cities such as Hanoi and Ho Chi Minh City, and southern localities heavily affected the country’s economic development, the Ministry of Industry and Trade proposed and received the Government’s approval in guiding the Vietnam Electricity (EVN) to reduce the price of electricity five times, with a total amount of nearly 17 trillion VND (733 million USD).

6. Oil and gas exploration completes yearly target of 7.88 million tonnes of oil 42 days ahead of schedule

With the increased application of science and technology, oil and gas exploitation reached its maximum output, contributing 75.4 trillion VND to the State budget, 21% more than the yearly target, and 23% over the previous year.

7. Record import, export turnover of nearly 670 billion USD, Vietnam joins 20 leading economies in terms of international trade

Last year, the total import-export turnover of the country was estimated at nearly 670 billion USD, up nearly 23% year-on-year. Of this, the export value is estimated at over 336 billion USD, up 19% year-on-year, marking the sixth consecutive year Vietnam achieved a trade surplus with about 4 billion USD, in the context of global trade being heavily and unprecedentedly impacted by the COVID-19 pandemic.

8. Bringing into full play signed free trade agreements

Taking advantage of free trade agreements (FTAs) to boost exports was carried out more effectively and produced positive results.

Thanks to the EU-Vietnam FTA (EVFTA), two-way trade hit 63.6 billion USD last year, up 14.8% year-on-year, of which Vietnam’s export to the EU was 45.8 billion USD and its import from the union 17.9 billion USD, up 14.2% and 16.5% year-on-year, respectively.

Besides, the UK-Vietnam FTA (UKVFTA) also pushed two-way trade to a two-digit growth rate last year, with nearly 6.6 billion USD. Specifically, Vietnam’s exports to the UK rose by 15.4% year-on-year, and imports by 24.1%.

9. Strategy on Domestic Trade Development to 2030 with a vision to 2045 issued

On July 13, 2021, the Prime Minister issued Decision No.1163/QD-TTg, approving the Strategy on Domestic Trade Development to 2030 with a vision to 2045, marking the first time Vietnam has an overall strategy for domestic market development.

The strategy aims at concretising policies of the Party and State and following the Socio-Economic Development Strategy for 2021-2030.

10. Trade protection seeing outstanding results, contributing to protecting domestic production and market

In the context of extensive international economic integration and Vietnam’s participation in new-generation FTAs, the Ministry of Industry and Trade actively carried out trade protection measures to form a fair competitive environment and safeguard the legitimate interests of domestic industries.

These measures had positive effects on several sectors such as sugar and sorbitol products, helping ensure employment for farmers and labourers. It is estimated that trade protection measures helped protect the employment of nearly 150,000 labourers./.