Customs clearance in a northern port (Photo: VietnamPlus) Hanoi (VNA) – Amid the falling number of orders, the Vietnamese Ministry of Industry and Trade (MoIT) is focusing on measures in support of enterprises to fuel production, improve competitiveness and reduce costs.
Vietnam's import and export activities have declined at double-digit rates over the past six months, reported the MIT.
Processing industry down nearly 12%
In July, Vietnam earned around 29.68 billion USD from exports, down 3.5% annually. On a seven-month calculation, the figure hit 194.73 billion USD, down 10.6% year-on-year.
Notably, processing industry exports went down 11.9%, fuel and minerals 16.4% and agro-forestry-fisheries 0.2%.
According to the Vietnam Leather, Footwear and Handbag Association, many firms in the industry are still facing significant difficulties and challenges. For traditional clients, the decline ranged from about around 30-40%. Meanwhile, small and medium-sized enterprises are experiencing even more discouraging signs with small orders.
Firms adopt technological advances to enhance productivity and reduce costs (Photo: VietnamPlus) Statistics from the MoIT showed that Vietnam's exports to key markets have decreased over the past seven months. For instance, shipments to the US dropped by 21.8% year-on-year while those to the EU, ASEAN, the Republic of Korea and Japan fell by 9.9%, 9.6%, 8.8% and 3.5%, respectively.
Pushing ahead with solutions to support enterprises
During the period, Vietnam’s import value was estimated at 179.5 billion USD, down 17.1% year-on-year. The domestic and foreign-invested sector experienced respective declines of 16.1% and 17.7%,. Some commodities with sharp falls in exports include machinery, equipment and spare parts 14.6%; fabrics 18.6%, steel 30.6%, rubber 39.3%, cotton 21%; chemicals 25.4% and fertilisers 24.5%.
In July, the trade surplus reached roughly 2.15 billion USD, bringing the seven-month figure to 15.23 billion USD, over 11 times higher than that recorded during the same period last year, 1.34 billion USD.
Deputy Minister of Industry and Trade Do Thang Hai said the complicated and uncertain developments in the world together with the prolonged impacts of COVID-19 pandemic have resulted in the disruption of supply chains.
The weakening purchasing power in several key markets has significantly impacted domestic manufacturing in general and industrial production in particular as these markets are major importers of key industrial products such as apparel, footwear and wooden furniture.
Prices of farm produce such as cashew nuts, tea, pepper and rubber trended down while export prices of industrial processed goods saw double-digit decreases such as crude oil 25.2%, petroleum 16.9% and fertilisers 36.2%.
Tapping opportunities to boost exports (Photo: VietnamPlus) In face of the situation, the MoIT is making efforts to step up negotiations, sign new agreements and commitments, including finalising the implementation of the Free Trade Agreement (FTA) with Israel, signing FTAs and trade deals with other potential partners like the United Arab Emirates (UAE) and the Southern Common Market (MERCOSUR) to diversify markets, products, and supply chains.
It is also working to enhance the efficiency and regulate the speed of customs clearance at border gates between Vietnam and China. This is particularly crucial for seasonal agricultural and aquatic products, facilitating a swift transition to exports via official channels.
Additionally, efforts are underway to connect domestic firms with the supply chains of large global foreign enterprises investing in Vietnam. Support is provided, especially for small and medium-sized enterprises, to recover and enhance production through streamlining administrative procedures, facilitating credit access, and more./.
