Exports Likely to Finish Target Ahead of Time

 

According to the Ministry of Industry and Trade, Vietnam’s exports valued at US$62.05 billion in the first six months of 2013, representing a year on year rise of 16.1 percent. Of the sum, the domestic sector earned US$20.9 billion, up 2.2 percent and the foreign-invested sector raked in US$41.14 billion (exclusive of crude oil), up 24.7 percent.

 

Export growth was driven by manufactured and processed goods, mainly made by foreign direct investment (FDI) companies, like telephones and components, computers, electronic devices and components. If exports added US$8.6 billion in the first half of this year, these items contributed US$6.3 billion.

 

The domestic sector’s growth of 2.2 percent was higher than that in the same period (1 percent). Although the rise was modest, it reflected the effort of the domestic sector to restore production and boost export.

 

Due to global demand contraction caused by economic downturn, export prices slumped from last year, especially farm products. Volume of six out of eight agricultural products declined from a year ago while only cashew nut and black pepper had their shipments increase by 15 percent and 23 percent, respectively. Average prices of cashew nuts, black pepper, rice and rubber dropped from a year earlier.

 

Fuel and mineral exports brought home more than US$5 billion in the first six months, down 10.5 percent year on year and equal to 8 percent of export turnover. Only petroleum export slid in the reporting period because of re-exported volume declined while others increased in volume. Exported minerals augmented because the Government allowed mining companies to export some kinds of stockpiled items to reduce hardships. Except for ores and other mineral items, prices of other products in this group tumbled from a year earlier.

 

Reduced prices of agricultural products led to a loss of US$252 million in export value. Lower prices also caused fuel and mineral export value to fall US$530 million. In sum, these two groups of products saw a value drop of US$783 million.

 

Market obstacles and weather conditions also caused agricultural shipments to shrink in volume. The volume decline resulted to the value drop of US$610 million in the period. Volume decline of fuel and mineral items also entailed the value drop of US$674 million.

 

In sum, these groups lost US$1.45 billion of export turnover on the decline in volume and value. Many solutions like purchasing rice for temporary stockpiling, financing companies and seeking markets continued to be applied.

 

In general, manufactured and processed industrial products continued to be the bright spots on the picture portraying Vietnam’s exportation in the first six months of 2013. This group had highest export growth of 27.2 percent and contributed most (more than US$9.1 billion) to overall export increase.

 

Exports to Africa expanded 41.7 percent, the highest among Vietnam’s export destinations. Gold export to South Africa was an important factor to this growth. The export growth to African markets followed with 19.9 percent. Asian market continued to be key export market for Vietnam because they accounted for 82 percent of Vietnam’s total exports, 2 percent higher than that in the first six months of 2012).

 

Despite existing difficulties in Europe, Vietnam’s shipments to this key market still advanced 15.8 percent. Particularly, exports to the 27-country eurozone increased 20.8 percent. Vietnam’s exports to Americas climbed only 7.2 percent, led by the US with a 13 percent growth. However, exports to Oceania decreased 22.9 percent, of which shipments to Australia fell 28.6 percent.