Exports Witness Positive Recovery as COVID-19 Pressure Begins to Ease

10:55:37 AM | 6/17/2020

 Viet Nam’s export turnover in May recorded a relative increase compared to April, which shows that the country’s concerted efforts in accelerating exports of goods have worked.

Specifically, Viet Nam exported US$19.19 billion worth of products in May, representing a month-on-month growth of 9.1%, while its import revenue reached US$18.18 billion, down 1.9% from the previous month.

Regarding trade balance, Viet Nam reported a trade surplus of US$1 billion last month, thereby bringing the surplus in the January-May period to over US$3.5 billion.

According to the Ministry of Industry and Trade (MOIT), supply chain and import-export markets have been disrupted due to the impact of the COVID-19 pandemic.

Yet, since mid-April, the situation has gradually improved as European nations have taken steps to reopen the economy.

Many countries have launched large-scale stimulus packages, strengthened fiscal response to the disease, maintained essential economic activities and supported workers.

In the U.S., by the end of May 2020, all the 50 states had partially reopened after two months of closure to implement restrictions to cope with COVID-19.

Last month, Viet Nam’s export value to many key markets simultaneously increased, growing by US$700 million to the US, US$502 million to the EU, and US$22.8 million to ASEAN countries.

Notably, during the January-May period, Viet Nam’s exports to China reached approximately US$16 billion, up 17.9% year-on-year or US$2.43 billion, and equivalent to the growth of exports to the U.S. market.

In recent times, the MOIT has implemented online trade exchange activities between Vietnamese businesses and partners with import demands, aiming to expand the consumption market for Viet Nam’s agricultural products in particular and goods in general.

Right from the moment when the pandemic still showed few signs of abating, the ministry promptly considered deploying trade promotion forms to unfreeze the export markets for farm produce.

China was the first market to be targeted with an opening event of the Viet Nam-China online trade exchange conference, which attracted more than 150 businesses from both sides.

Next, the MOIT organized an online Viet Nam-India trade promotion seminar regarding agricultural products and processed foods.

With a population of nearly 1.4 billion, India is a potential market for Vietnamese farm produce and food exporters.

The EU-Viet Nam Free Trade Agreement (EVFTA), scheduled to come into effect next month, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which took effect previously, are expected to create new engines for Viet Nam’s exports in the remaining months of 2020 and the years ahead.

Source: VGP