Trade promotion activities create opportunities for businesses to expand markets (Photo: VietnamPlus) Hanoi (VNA) - Amidst general difficulties in the economy, export turnover in recent months has kept momentum and in the first half of this year recovered about 88% compared to the same period last year.
Many agricultural products such as rice and vegetables saw high growth in the period. However, the export of some key industrial products was down, requiring more effort to meet the increasing conditions of the market.
Tran Thanh Hai, Deputy Director of the Import-Export Department under the Ministry of Industry and Trade did an interview with reporters on solutions that the industry and trade sector took up to achieve the goals set out for 2023.
Difficulties “round up” businesses
Reporter: Export turnover in recent months has shown positive signs. This month is higher than that of the previous month. So can you analyse export activities more closely in the first half of this year for us?
Tran Thanh Hai: It can be said that Vietnam's exports in the first 6 months of this year were in a very difficult period. However, looking at the last two months, there have also been bright signals.
In general, the export revenue decreased compared to 2022, but in the last two months (May and June), month-on-month growth was recorded. The H1 turnover was equivalent to about 88% of that of the same period last year.
In that picture, many products still saw high export results, of which the export turnover of vegetables and fruits increased by 64% and rice by 34% over the same period last year. These are positive numbers, showing strong recovery as well as market expansion. However, most of the other commodities, especially our industrial products, currently face a lot of difficulties.
Reporter: A report of the Ministry of Industry and Trade shows that in the first six months of 2023, the export turnover of goods was estimated at 164.45 billion USD, down more than 12% compared to the same period last year. In your opinion, what are reasons for the low export value in the first half?
Tran Thanh Hai: We see that there are both long-term as well as immediate causes. The most direct cause is the decrease in aggregate demand due to high inflation and economic slowdown in the main export markets, as well as increasing competition among export countries after their post-pandemic door reopening.
Tran Thanh Hai, Deputy Director of Import-Export Department under Ministry of Industry and Trade (Photo: VietnamPlus) On the other hand, the supply chain is not fully restored due to the Russia-Ukraine conflict as well as strategic competition between major powers. Or the fact that countries also had to maintain quite large inventories during the pandemic period also reduced aggregate demand.
The above factors are considered the main influence on the economy from now until the end of the year. Therefore, we see difficulties in the export picture from now to the end of this year.
Reporter: So in your opinion, which industries and sectors most affected in the first six months and what is the forecast for the last six months?
Tran Thanh Hai: The most affected industries are still industrial products, especially consumer goods. For example, the export turnover of phones and components decreased by about 17%; electronics and computers about 9%; garment and textiles 15%; footwear 15% and aquatic products about 27%. These are the sectors that suffered the most declines in the first six months of the year.
Meeting high standards to increase exports
Reporter: In your opinion, what are opportunities for exports in the last six months and what policies are needed to remove difficulties and create motivation for export growth to reach the highest possible level?
Tran Thanh Hai: Although the export market still faces many difficulties, the general assessment shows that there is a positive point, that is, our production force is still well maintained and continues to be a factor that attracts investment. On the other hand, businesses are also making good use of free trade agreements (FTAs) to maintain exports to key markets.
Here we see the 2023 export growth target of 6% as extremely challenging. The solutions that need to be implemented include continuing to support businesses to take advantage of free trade agreements through training and increasing awareness. They need to make effective use of rules of origin, step up trade promotion activities, and diversify forms of promotion to gain access to new markets.
Import and export activities at inland port (Photo: VietnamPlus) In addition, it is necessary to support enterprises to join the distribution network of foreign retail chains, promote exports through e-commerce platforms, and grasp difficulties facing the business community, thereby helping them remove difficulties and continue promoting exports.
Reporter: In a context that our businesses are facing many difficulties in terms of orders, requirements of export markets are getting higher. So what do you think about these challenges as well as efforts of enterprises in the coming time to be able to meet these conditions?
Tran Thanh Hai: Currently, enterprises must exert great effort to maintain production, export and goods circulation. They should also continue to evaluate and restructure their operation and business strategies.
We also see big market fluctuations in the past three years. Problems related to the pandemic, supply chain disruptions and the impact of demand reduction in the consumer market are all great challenges for businesses.
In fact, Vietnam has experience in dealing with situations like this, so this is the stage where businesses need to continue to apply their experiences and lessons to be able to come up with strategies suitable for their business activities.
Special attention should be paid to newly arising trade barriers. For example, trade remedies, measures related to labour and the environment, and especially green trade policies will have great impact on trade activities in the coming context.
This is the time for our businesses to consider to have a structure in terms of materials as well as technology to be able to meet requirements of green trade, especially in the upcoming period.
Reporter: Thank you very much./.
