For the first time this year Vietnam’s foreign trade has hit the US$700 billion mark, marking a bright spot in the overall picture of the national economy amid global market volatility.
The General Department of Vietnam Customs reported that as of noon on December 15, the country’s import-export value reached US$700.23 billion, a new milestone for foreign trade.
This impressive performance by the trade sector can be put down to the rapid growth of agro-forestry-fisheries exports which raked in US$90 billion during the initial 11 months of the year, representing an annual rise of 9.5%.
After China officially permitted businesses to import Vietnamese durians this summer, the export value of the fruit to the northern neighbour has increased dramatically. Statistics indicate that the past two months witnessed durian exports to China reach US$350 million in value, and the fruit is expected to join the group of commodities with an export value of US$1 billion next year.
Furthermore, the fact that the United States and New Zealand have accepted Vietnamese pomelos and Japan has welcomed Vietnamese longans has created bright prospects ahead for these fruits to penetrate deep into these markets in the time ahead.
Another group of commodities with billions of US$ in export value is garments and footwear which are expected to be a success story for this year. Statistics show that garment exports brought in nearly US$38 billion during the first initial 10 months of the year, up 17.2% year on year, and industry insiders believe that the US$42 billion target for this year is well within reach.
Ironing out snags
However, Vietnamese businesses are currently feeling the pinch due to inflation in major markets rising, prompting consumers to tighten their belts. Indeed, many importers have cut down on orders, causing difficulty for firms.
At this time every year, production lines of Tinh Loi Garment Co. operate at full capacity to meet orders placed for the first and second quarters of next year. This situation is different this year as the number of import orders for the first quarter 2023 has fallen by 30%, forcing the company to introduce new solutions.
“We have to focus on the domestic market at present, and are seeking new customers in the coming months,” said Do Xuan Hung, financial director of Tinh Loi Garment Co.
Elsewhere, Vien Thinh Shoe Company has changed its customer care service by directly seeking customers as opposed to awaiting contracts to be signed.
“We have to fly to markets overseas to negotiate and offer new designs at an affordable price,” said Tran The Linh, director general of Vien Thinh Shoe Company.
Being aware of difficulties faced by enterprises, the Ministry of Industry and Trade is deploying measures aimed at supporting exports, including increasing connectivity through trade promotion activities.
“The ministry has recently held online meetings with business associations and Vietnam Trade Bureaux abroad to get market updates and listen to business proposals,” said Nguyen Cam Trang, deputy head of the Import-Export Department under the Ministry of Industry and Trade.
Positive outlook ahead for 2023
According to the Ministry of Industry and Trade, with the COVID-19 pandemic almost under control, most markets globally have now relaxed and returned to normal. Along with this, the reduction in logistics costs, especially sea transportation costs, also helps export businesses to gain more advantages in terms of ensuring the growth rate next year.
This year the trade surplus is likely to fetch over US$10 billion, meaning the country has enjoyed a trade surplus for seven consecutive years. Most notably, 35 items have achieved export turnover exceeding US$1 billion, of which eight export items have brought in more than US$10 billion each.
For the first time, seafood exports have grossed US$10 billion in value, while wood and wood product exports reached US$14.6 billion in the initial 11 months of the year. Meanwhile, the textile, leather and footwear sectors are also expected to meet the targets set for the year. These are positive signals that will motivate businesses to boldly invest in production and strive to increase order value in 2023 and beyond.
