Export Highlights New Record - New Challenge

The total export turnover in 2022 is expected to reach US$732 billion, up 10% compared to the previous year, which is a new record. In particular, the trade balance in 2022 has continued to record a trade surplus for the 7th consecutive year with a surplus of nearly US$11 billion, nearly 3 times higher than the previous year.

Vietnam’s seafood exports reach a record US$11 billion in 2022

Export mark and new pressure

The export turnover in 2022 is expected to increase by 10.5%, exceeding the planned target assigned by the National Assembly and the Government (the plan is to increase by 8%). There are 39 items with an export turnover of over US$1 billion, an increase of 4 items compared to 2021, of which 9 items have achieved export turnover of over US$10 billion. The structure of export goods has continued to improve in a positive direction. The import turnover of goods in 2022 is expected to increase by about 8.5% compared to 2021 and is basically well controlled.

The export growth result in 2022 is a bright spot in the macroeconomic picture, demonstrating the efforts, initiative and flexibility of enterprises in organizing production, seizing opportunities, as well as exploiting FTAs effectively to boost exports.

However, according to a representative of the Ministry of Industry and Trade, the new context has witnessed many difficulties and uncertainties. According to preliminary information, the order status in the beginning of 2023 of some industries such as consumer goods, textile and apparel, leather and footwear is facing many difficulties.

In the key export industries, textile and apparel have a turnover of US$44 billion, while the planned target is US$47 billion. Mr. Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association (VITAS), said that in the last 6 months of 2022, the main markets of Vietnam's textile and apparel industry had fallen into inflation and demand had declined sharply. By the fourth quarter, orders have decreased by 30%, some businesses have had order reduction of 70% in the European market.

For the seafood industry, the export turnover in 2022 is estimated to reach a record of about US$11 billion, up 23.8% over the same period in 2021 and 22.2% compared to the plan. In particular: an export turnover of brackish water shrimps has reached US$4.1-4.2 billion, up about 13%; Pangasius’s export turnover has reached US$2.35 billion, up 70%. Although the export targets of the seafood industry have all met and exceeded the Strategy for Seafood Industry Development and Construction, the Vietnam Association of Seafood Exporters and Producers (VASEP) believes that in 2023, enterprises will still face problems of slowness, delay in delivery, high cost of preservation, storage, and lack of capital. These challenges will affect the procurement of raw materials for farmers, while people are also "thirsty” for capital to invest in new crop cultivation. Piling up difficulties can create a domino effect that slows down the growth of the seafood industry.

Beside the difficulties in orders, according to the Ministry of Industry and Trade, the speed of market diversification in some products is still slow, so it is not able to meet the requirements of standards and quality of the market, and make good use of tariff preferences from signed FTAs. The transition from unofficial export to official one is still slow.

Vietnam's vegetable and fruit exports are forecast to grow strongly in 2023 

Aiming towards export growth of 6% in 2023

According to Mr. Tran Thanh Hai, Deputy Director of the Import and Export Department (Ministry of Industry and Trade), businesses need to actively grasp trends according to requirements from the import market. Accordingly, now environmental protection is an urgent requirement, even consumer products have very high green standards and greening requirements. This will affect the entire supply chain, affecting not only large enterprises but also small and medium-sized processing, manufacturing and exporting ones.

In addition, some current markets such as the EU are expected to impose new tax lines related to the environment, called a carbon tax - products that consume a lot of energy, or do not have solutions for emission neutrality are subject to additional taxes. This is a very new factor, businesses need to pay attention, research and have solutions to handle.

In this regard, Mr. Le Tien Truong, Chairman of the Board of Directors of Vietnam National Textile and Garment Group (Vinatex), said that raw materials were always the first step to implement "greening" as required by the US and Europe. Therefore, Vinatex has organized the production of yarn products from recycled materials or organic materials. The percentage of fiber production from organic ingredients in cotton accounts for 30-35% of the total output. At the same time, raw material factories are equipped with solar power to meet the standard that 20% of the energy used in the factory is green energy.

According to Ms. Phan Thi Thanh Xuan, Vice President and General Secretary of the Vietnam Leather, Footwear and Handbag Association (Lefaso), in order to meet the regulations on proving the rules of origin, enterprises also need to participate in training and practice. In addition, for conditions related to sustainable development (environment, occupational safety), enterprises must also improve and renew the quality of human resources as well as the system of production facilities, especially using clean energy and new green technology meeting EU standards.

With the determined goals and determination to overcome limitations and weaknesses, the Ministry of Industry and Trade also offers many solutions such as: Actively reviewing and advising competent authorities to negotiate and sign new bilateral and multilateral cooperation mechanisms; continuing to promote the role of the Vietnam's trade promotion agency system abroad, supporting localities and business associations to effectively exploit signed FTAs to expand and diversify markets, supply chains and export products. It is important to take advantage of the trend of supply chain shifting, promoting the attraction of large corporations and enterprises into industries and fields consistent with socio-economic development orientations and planning, especially green economy, transforming energy, semiconductor and high value-added industries.

Huong Ly (Vietnam Business Forum)