09 May 2023

Trade promotion solutions have been actively deployed by the Ministry of Industry and Trade to remove difficulties for export of goods.

Import and export decline

According to the Ministry of Industry and Trade, over the past time, the world economy has faced many difficulties, which continued to affect the import and export turnover of Vietnam's goods in April 2023.

Total import and export turnover of goods in April was estimated at 53.57 billion USD, down 7.7% over the previous month and down 18.8% over the same period last year. Generally, in the first four months of 2023, the total import and export turnover of goods was estimated at 210.79 billion USD, down 13.6% over the same period last year (up 16.6% in the same period last year).

Specifically, in terms of commodity exports, difficulties in production and a decrease in export orders in the first quarter of 2023 continued to affect commodity exports in April 2023. In which, the export turnover of goods in April 2023 was estimated at 27.54 billion USD, down 7.3% over the previous month and down 17.1% over the same period last year.

Notably, commodity exports have decreased in almost all economic sectors, showing that import and export activities in general are facing many difficulties due to general instability in the world market. In which, the domestic economic sector reached 7.12 billion USD, down 8.6%; FDI sector (including crude oil) reached 20.42 billion USD, down 6.9%.

Generally, in the first 4 months of 2023, export turnover of goods was estimated at 108.57 billion USD, down 11.8% over the same period last year (increasing by 17.1% in the same period last year).

In 4 months, there were 20 items with export turnover of over 1 billion USD, down 2 items compared to the same period last year (22 items), accounting for 83.8% of total export turnover (with 5 items). exports are over 5 billion USD, accounting for 57.4 %).

Rare bright spots

Rice export is a rare bright spot on the export picture.

Regarding exports of commodity groups, the export turnover of agricultural, forestry and fishery products in the first 4 months of 2023 was estimated at 9.68 billion USD, down 4.8% over the same period last year, accounting for 8.9%. total exports. Goods with high growth in export turnover in this group include: rice by 54.5%, vegetables and fruits by 19.4%; cassava increased by 26.3%.

Following the achievements in the first months of the year, rice export continued to be a prominent bright spot in the export of agricultural, forestry and fishery products in April with a sharp increase in both export volume and value. It is estimated that rice exports in April 2023 increased by 14.4% in volume and 12.8% in export turnover compared to the previous month; increased 98% in volume and 108% in export turnover over the same period last year.

According to the Vietnam Food Association (VFA), rice exports will continue to be favorable in the coming time. In the short term, rice prices are still at a good level due to global economic and political uncertainties that increase the need for food reserves. This is a factor that helps rice businesses benefit in the coming time.

Besides, now the demand for rice imports in African countries increases. It is forecasted that the Chinese market will also start to increase reserve imports. Meanwhile, rice supply from India and Pakistan continues to be limited; Thai rice prices increased due to the appreciation of the baht. Therefore, the upcoming trend of rice market will continue to be active.

Maintain trade balance in surplus state

Export turnover of processed and manufactured goods continued to decline sharply, estimated at US$91.16 billion, down 14.1% over the same period last year due to the influence of the global economic slowdown. demand decreased, the demand of major export markets decreased sharply. In general, export turnover of most products in the group decreased compared to the same period last year.

The export turnover of mineral fuels continued to decline sharply, estimated at 1.25 billion USD, down 17.8% over the same period last year because the turnover of most commodities decreased such as: coal down 98 .9%; ores and other minerals down 30.7%; petrol and oil of all kinds decreased by 11.2%; Crude oil fell 7.5%...

Regarding the commodity export market in the first 4 months of 2023, our country's export turnover to most major markets and trading partners decreased. In which, the United States is Vietnam's largest export market with an estimated turnover of 28.45 billion USD, accounting for 26% of total export turnover, down 21% over the same period; followed by China with 16.4 billion USD, down 7.9%; EU market reached 13.66 billion USD, down 14.1%; ASEAN market reached 11.1 billion USD, down 1.3%; Korea reached 7.8 billion USD, down 6.9%; Japan reached 7.3 billion USD, down 0.9%.

In the opposite direction, the import turnover of goods in April 2023 was estimated at 26.03 billion USD, down 8.1% compared to the previous month. Generally, in the first 4 months of 2023, import turnover of goods was estimated at 102.22 billion USD, down 15.4% over the same period last year (up 16.1% in the same period last year).

Notably, the import turnover of all business sectors has decreased. This is expected to affect the source of export goods in the near future.

Regarding the structure of imported goods, accounting for 86% of Vietnam's total import turnover in the first 4 months of 2023 is the group of goods that need to be imported (raw materials and accessories for domestic production) with an estimated turnover of 88 billion USD, down 18% over the same period in 2022 due to difficulties in export orders. Besides, production and business activities of enterprises are also difficult, so the need to import raw materials and accessories to serve production decreases.

Regarding the import market of goods in the first 4 months of 2023, due to difficulties in production and export, the import turnover of Vietnam's goods from most markets decreased compared to the same period last year. In which, China is still Vietnam's largest import market with an estimated turnover of 33.2 billion USD, down 13.4% over the same period last year; followed by South Korea with an estimate of 16.7 billion USD, down 25.7%; ASEAN market reached 13.4 billion USD, down 17.1%; Japan reached 6.9 billion USD, down 12.8%; EU market reached 4.38 billion USD, down 17%; The United States reached $4.08 billion, down 11.9%.

With such developments, Vietnam's trade balance in April continued to have a trade surplus of about 1.51 billion USD, bringing the total trade surplus in the first 4 months of 2023 to 6.35 billion USD (the same period last year, the $2.35 billion). In which, the domestic economic sector has a trade deficit of 8.04 billion USD; the foreign-invested sector (including crude oil) had a trade surplus of $14.39 billion.

Promote solutions to expand the market

In order to promote import and export in the coming time, the Ministry of Industry and Trade has determined that it will focus on innovating and strengthening trade promotion activities towards new and potential markets such as India, Africa, Middle East and Latin America, Eastern Europe… and markets less affected by inflation and positive growth (ASEAN).

Besides, choose solutions to break into new markets where the middle class is growing such as E7 emerging markets (China, India, Turkey, Russia, Mexico and Indonesia; Halal market). (Middle East, Malaysia, Brunei).

At the same time, promote effective exploitation of Free Trade Agreements (FTAs). Facilitating and enhancing digital transformation in the granting of preferential C/O certificates of origin, thereby supporting businesses to take advantage of commitments in FTAs.

The Ministry of Industry and Trade also promotes the development of logistics services, thereby reducing costs and improving the competitiveness of Vietnam's exports. Promote import and export development through cross-border e-commerce activities.

In particular, continue to organize monthly briefings between agencies of the Ministry, the system of Vietnam's Trade Office abroad and localities, associations, businesses and related ministries and branches to promptly update businesses and associations on information, needs, as well as new regulations of the market.

At the April periodic briefing with the theme of promoting exports to the Chinese market, Minister of Industry and Trade Nguyen Hong Dien affirmed that China is still the most populous country in the world and has a long tradition. The cultural system, consumption habits are similar to the Vietnamese people as well as having economic and commercial relations with Vietnam for thousands of generations. China also has bilateral cooperation agreements with us and is a member of free trade agreements such as the China-Vietnam Agreement, ASEAN, China, RCEP... Thus, economic relations Trade between Vietnam and China has always been a priority in our country's trade policy.

However, from another angle, it should be noted that the Chinese market is no longer an easy market, when China reopens its economy after Covid-19, it is both an opportunity and a great challenge. to us. We must correctly identify and properly assess the current situation of the Chinese market, in order to exploit the strengths and advantages for this market" - Minister Nguyen Hong Dien requested.

Source: congthuong.vn