Vietnam targets export value to rise 10 percent to US$165 billion in 2015. In the first 10 months, the country fetched nearly US$134.62 billion, or 81.6 percent of the full-year plan. To fulfil the plan, it must get nearly US$15.2 billion a month till the end of the year. This is a very difficult task. Therefore, authorities must have more drastic solutions to support and promote exports in order to achieve the target.
Price slumps
Some exports saw average prices rise in the review period like cashew nuts (up 11.1 percent), pepper (25.2 percent) and coal (41.8 percent) while some others took the plunge, including crude oil (down 49 percent), plastic materials (23.2 percent), and gasoline (42.6 percent).
Price slumps lowered the export value of agricultural products by US$1.82 billion. Fuel and mineral exports dropped US$3.65 billion on falling prices.
Shipment volumes increased in some commodities, such as cassava (up 23.5 percent), petroleum (27.4 percent), and plastic (23.2 percent) while some items witnessed sharp drops in volume, including coffee (down 28.9 percent), coal (75.8 percent), and fertilisers (26.2 percent).
In combination, Vietnam saw a drop of US$5.47 billion from exporting agricultural products and minerals in the first 10 months, compared with the same period last year 2014.
October exports were estimated to be higher than in September as values in some key commodities gained, including production materials, suitcases, hats, umbrellas, textiles, garments, footwear, furniture, cameras, camcorders, toys, and sports equipment.
Processed industrial commodities still play an important role in overall export growth. This group of commodities saw export turnover growth of 17.6 percent year on year in the reporting period while agricultural products, aquatic products and forest products dropped 9.7 percent and minerals and fuels plunged 46.5 percent.
The foreign direct investment (FDI) sector continued with a high growth and contributed largely to export growth. Export turnover expanded by 13.4 percent year on year in the first 10 months, or added nearly US$14.5 billion, of which the FDI sector contributed US$9.5 billion (or 65.5 percent of the share). The high growth of this sector was driven by telephones and parts.
By destination market, from January to October, exports to the United States rose 18 percent and accounted for 20.6 percent of Vietnam’s total export; shipments to the European Union climbed 11.9 percent and made up of 18.8 percent; exports to ASEAN slipped 2.9 percent and contributed 11.4 percent; exports to Japan sank 5.2 percent and accounted for 8.6 percent; and exports to China grew 12 percent and accounted for 10.3 percent.
Input imports jump
In the 10-month period, import turnover was estimated at nearly US$138.7 billion, up 14.3 percent year on year. Spending on production inputs for domestic production and consumption as well as imports for export-driven production of FDI companies continued to increase and accounted for 88.3 percent of Vietnam’s total imports. Substantial growth was seen in agricultural products, ores and minerals, liquefied natural gas (LPG), pharmaceutical inputs and timbers as manufacturers scaled up production to meet higher demands at the end of the year.
Controlled and restricted imports are still under control. However, the spending on mobile phones and automobiles with less than nine seats still climbed relatively high from the same period of last year.
The FDI sector’s imports jumped 19.3 percent in 10 months, higher than the country’s overall import growth of 14.3 percent. Major imports of foreign-led firms included telephones and components, inputs for garment, textile and footwear production.
Taking prices into consideration, some commodities had higher import prices, such as cashew nut (up 20.9 percent), and automobiles, excluding those with less than nine seats (7.6 percent). Meanwhile, a majority of imports saw price drops, including soybean (down 21.2 percent), coal (32.3 percent), crude oil (44 percent) and steel (25.7 percent).
By volume, imported cashew nuts jumped approximately 58.5 percent; maize soared 60.3 percent; coal surged 112.3 percent; rubber leaped 21.1 percent; cotton climbed 43.2 percent; automobiles excluding those with less than nine seats looked up 101.9 percent; and automobiles of less than nine seats rose 58.5 percent. Only one commodity, scrap steel, saw the volume down5.7 percent.
By source markets, Asia supplied 80.3 percent of Vietnam’s imports. Specifically, ASEAN nations accounted for 14.1 percent and East Asian countries made up for 62.6 percent. China alone accounted for nearly 29.5 percent of Vietnam’s total imports.
The October trade deficit was estimated at US$100 million, equal to 0.7 percent of exports, bringing the 10-month deficit to US$4.13 billion, or 3.1 percent of exports. Notably, domestic companies ran a trade deficit of US$17.1 billion while foreign-led firms took a surplus of nearly US$13 billion.
To boost exports in the coming time, the Ministry of Industry and Trade is carrying out solutions to strengthen the connectivity of domestic and foreign markets, and provide timely forecast, assessments and information on market demands and developments to increase exports, particularly agricultural and aquatic products. The ministry’s relevant agencies have also adopted drastic measures to expand exports and control imports to ensure the export growth of 10 percent and keep trade deficit below 5 percent of exports in 2015.
Huong Ly
Vietnamese
