Last updated: Friday, April 26, 2019


Optimistic for Stronger Export Growth

Posted: Tuesday, July 25, 2017

Export value totalled US$97.7 billion in the first six months of 2017, up as high as 18.8 per cent over the same period of 2016 (up 5.9 per cent) on higher prices (mainly agricultural products and fuels) and shipments (manufactured products). Exports also increased month by month.

Notably, fuel and mineral exports recorded very high growth of 40.2 per cent to reach US$2.29 billion in the six-month period. All commodities in these groups advanced, particularly coal (up 326 per cent), crude oil (36.2 per cent) and petroleum (31.2 per cent), on higher prices.

The export of processed goods rose sharply by 19.1 per cent to US$78.56 billion. High and stable growth was seen in key exports, particularly electronic devices, electric devices and footwear. Woodwork export regained its high growth momentum to reach US$3.66 billion in the review period, up 13.9 per cent over the same period of 2016 (up only 1.1 per cent) because Chinese shipments to the United States were imposed anti-dumping duties, resulting in a redirection of export orders to ASEAN markets, particularly Vietnam. Therefore, there are many opportunities for the Vietnamese wood industry to enter the interior furniture market in the US.

The third reason to the export jump was the six-month growth of agricultural, forestry and fishery products, rising 16.7 per cent to US$12.1 billion, led by the high growth of vegetables and fruits (43.5 per cent) and seafood (16.7). After a long period of slowdown, rice also drove up the overall export performance thanks to strong shipments to Malaysia, Bangladesh and China.

The agro-forestry-fishery product growth was attributed to export market development and opening, especially at the back of our high-level diplomatic missions. For example, Vietnamese fruits successfully penetrated many demanding markets such as the United States (allowing import of dragon fruit, rambutan, longan and litchi), Japan (dragon fruit, mango), Korea (dragon fruit, mango), New Zealand (dragon fruit, mango) and Australia (litchi, mango).

Regarding export markets, exports to all markets grew significantly, especially those with FTAs with Vietnam. For example, exports to ASEAN climbed 27.7 per cent to US$10.47 billion (down 12.6 per cent in the same period of 2016); shipments to South Korea jumped 28.6 per cent to US$6.6 billion (down 1.3 per cent a year ago); shipments to China surged US$42.9 per cent to US$13 billion (up 14.3 per cent a year ago); exports to Russia looked up 34.4 per cent to US$1 billion. This showed that the export market diversification policy has brought in certain outcomes and importantly contributed export market maintenance and development.

However, the foreign invested sector still accounted for 72.1 per cent of total exports and enjoyed a higher growth than the domestic sector, up 20.4 per cent (including crude oil exports).

Key exports are forecast to have stronger growth in the last six months of 2017 as they have started to enter the annual growth cycle, for example, garment and textile, footwear and wooden furniture. Equipment and machinery import leaped in the first months of the year on strong fund disbursement for many projects. Hence, it may slide in the last months of the year. Exports are forecast to reach US$200 billion in 2017, up 13 per cent over 2016, higher than the target.

In the coming time, the Government will continue to focus on removing difficulties for domestic production and for export-driven projects; intensify market information and troubleshooting measures to market barriers; boost communications on FTA preferences; support businesses to respond to trade remedies; support companies to meet quality and qualification standards from importing countries while enhancing the value of exports, particularly agro-forestry-fishery products, and facilitating the penetration of agricultural products into new markets.

Huong Ly

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