Exports Forecast Strong Economy in 2014

 

The nine-month export earnings fulfilled 75.4 per cent of the target of US$145.4 billion set for the whole year. The foreign direct investment (FDI) sector continued to lead other economic sectors in export revenue and its percentage is getting higher and higher. The sector accounted for 61.3 per cent of Vietnam’s export earnings in the first nine months of 2014, higher than 60.5 per cent in the same period of 2013.

 

Export growth outpaced import growth in the January-September period. If the export growth is 10 per cent as expected for this year, the import spending will reach US$145.4 billion. The country already fetched US$109.6 billion in the first nine months. In recent years, Vietnam’s exportation tends to accelerate in the last months of the year and, given no sudden changes, the country is likely to take US$148 billion in the year, up 12 per cent over 2013. Exports are projected to reach US$146.5 billion, up 11 per cent year on year. As a result, Vietnam will run a trade surplus of US$1.5 billion.

 

After many years of robust growth, foreign-led companies-exported computers, electronic products and components, mobile phones and components, cameras, camcorders and accessories had lower growth rates than last year.

 

The growth rates of the country’s key exports such as apparels and textiles, leather and footwear, and woodworks were higher than the overall export growth. Among processed industrial products, chemicals, handbags, suitcases, hats, umbrellas, toys and sports equipment saw over 30 per cent growths. As the demand for these commodities has incrementally increased in new markets, Vietnam needs to have support, export promotion and market expansion policies for Vietnamese companies to boost their exports to those markets.

 

The growth rates of agricultural, forest and aquatic products were also higher than the average overall export growth, particularly seafood, vegetables, pepper, cashew nuts and coffee. Vegetable and fruit export expanded 42.7 per cent over a year earlier.

 

In the nine-month period, price drops took away nearly US$280 million from export of agricultural products meanwhile fuel and mineral products increased export earnings by US$59 million. In combination, Vietnam saw a drop of US$221 million in exporting these two groups of products. Due to bigger export volumes, the country still enjoyed an increase of US$843 million from export of these two groups of products.

 

Exports to new markets and niche markets soared in the first nine months of 2014. Free trade agreements (FTAs) also helped boost export growth.

 

Shipments to Americas rose more than 25 per cent, of which the United States posted a 22.7 per cent growth and Canada boasted a 39.7 per cent growth. Key exports to these markets were seafood, cashew nuts, coffee, pepper, apparels, machines, equipment, tools and spare parts. Latin America, the Caribbean and Africa did not contribute much to Vietnam’s overall exports. However, the trade with these markets climbed substantially. Latin America and Caribbean nations posted a 41.5 per cent growth in imports from Vietnam. Especially, Chile saw a 132.9 per cent growth in imports from Vietnam after the bilateral FTA took effect. Vietnam’s exports to African countries soared over 50 per cent. Developing African countries are currently in high need of agricultural products, textiles, computers, electronic products, mobile phones and vehicles. So, enterprises in Vietnam should consider researching these potential markets for export expansion.

 

Exports to European markets grew more than 10 per cent. Remarkably, the EU, Ireland, Belgium and Finland saw a more than 30 per cent growth. However, exports to Western European, Eastern European and Nordic nations continued to decrease 10 per cent, mainly because of tensions in Russia and Ukraine.

 

Oceania, which contributed 3 per cent to Vietnam’s total export turnover, saw a growth of 23.5 per cent in imports from Vietnam. Australia, the biggest market, mainly imports seafood, vegetables, cashew nuts, crude oil, apparels and footwear from Vietnam.

 

Vietnam saw a 10 per cent growth in exports to Asian markets, which contributed 49 per cent to Vietnam’s export earnings. East Asian nations took 29.4 per cent of the share, led by Japan and China with more than 10 per cent each.

 

In the coming time, the Ministry of Industry and Trade will seek solutions to remove difficulties and boost production and export. The ministry will also seek to expand and diversify export markets by grasping opportunities generated by international commitments, particularly FTAs. Vietnam will focus on increasing exports to traditional markets while making deeper inroads into potential markets in Eastern Europe, West Asia, South Asia, Africa and America Latin.