Join BB Agri to review the topic “Expand the market and suppressing the decline in export”

According to data from the Ministry of Industry and Trade, the total import-export turnover of goods in April reached 53,57 billion USD, a decrease of 7,7% compared to the previous month and a decrease of 18,8% compared to the same period last year Overall for the first four months of 2023, the total import-export turnover of goods reached 210,79 billion USD, a decrease of 13,6% compared to the same period last year (which had increased by 16,6%)

Specifically regarding exports, difficulties in production and a decline in export orders in 2023 continued to impact goods exports in April 2023 In particular, the export turnover of goods in April 2023 was estimated at 27,54 billion USD, a decrease of 7,3% compared to the previous month and a decrease of 17,1% compared to the same period last year

Export and import are facing many common difficulties

The Ministry of Industry and Trade acknowledges that commodity exports have decreased significantly in various economic regions, indicating that overall export and import activities are currently encountering numerous challenges due to general instability in the global market

Specifically, the domestic economic region reached 7,12 billion USD, a decrease of 8,6%; the foreign-invested economic region (including crude oil) reached 2042 billion USD, a decrease of 6,9%

Overall for the first four months of 2023, the total value of commodity exports is estimated at 10857 billion USD, a decrease of 11,8% compared to the same period last year (which had seen a 17,1% increase)

During these four months, there were 20 commodity items with export values exceeding 1 billion USD, a decrease of 2 items compared to the same period last year (which had 22 items), accounting for 838% of the total export value (with 5 items exceeding 5 billion USD, accounting for 57,4%)

In the overall picture, rice exports continue to be a bright spot in the export of agricultural, forestry, and aquatic products in April, with strong growth in both volume and export value Estimated rice exports in April 2023 increased by 14,4% in volume and 12,8% in export turnover compared to the previous month; an increase of 98% in volume and 108% in export turnover compared to the same period last year

According to the Vietnam Food Association (VFA), rice exports are expected to remain favorable in the near future In the short term, rice prices remain at a good level due to global economic and political uncertainties, which have led to increased demand for food reserves This factor will benefit rice businesses in the coming period

Exports of processed and manufactured industrial goods continue to sharply decline, estimated at 91,16 billion USD, a 14,1% decrease compared to the same period last year, due to the impact of the global economic downturn, overall demand reduction, and significant decreases in demand from major export markets Overall, exports of most items within this category have decreased compared to the same period last year

Exports of mineral fuels also continue to decline significantly, estimated at 1,25 billion USD, a 17,8% decrease compared to the same period last year, as the exports of most items have decreased: coal by 98,9%, other ores and minerals by 30,7%, various types of petroleum by 11,2%, and crude oil by 7,5%

Regarding the export market for goods in the first four months of 2023, our country’s exports to most major markets and trading partners have also decreased

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

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

Regarding the structure of imported goods, the group of goods that need to be imported (raw materials for domestic production) accounts for 86% of Vietnam’s total import turnover in the first 4 months of 2023, with an estimated value of 88 billion USD, a decrease of 18% compared to the same period in 2022 due to difficulties in export orders Additionally, production and business activities of enterprises are also challenging, leading to a reduced demand for imported raw materials for production

Regarding the import market of goods in the first 4 months of 2023, due to difficulties in production and export, Vietnam’s import turnover from most markets has decreased compared to the same period last year Among them, China remains Vietnam’s largest import market with an estimated turnover of 33,2 billion USD, a decrease of 13,4% compared to the same period last year; followed by South Korea with an estimated turnover of 16,7 billion USD, a decrease of 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%; and the United States reached 4,08 billion USD, down 11,9%

Vietnam’s trade surplus in April continued to be around 1,51 billion USD, bringing the total trade surplus in the first 4 months of 2023 to 6,35 billion USD (compared to a trade surplus of 2,35 billion USD in the same period last year)

Among them, the domestic economic area had a trade surplus of 8,04 billion USD; the area with foreign investment (including crude oil) had a trade surplus of 14,39 billion USD

“Suppressing” the decline of exports

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

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

Promote effective utilization of Free Trade Agreements (FTAs) Facilitate and enhance digital transformation in the issuance of preferential Certificate of Origin (C/O), thereby supporting businesses in leveraging commitments within FTAs

Boost the development of logistics services to reduce costs and enhance competitiveness for Vietnam’s exports Strengthen cross-border e-commerce activities to facilitate import and export

Especially, continue to organize regular monthly exchange conferences between the departments of the Ministry, the Vietnam Trade Office system abroad, and localities, associations, businesses, and relevant ministries and sectors to promptly update information and needs for businesses, associations, as well as new regulations of the market

Regarding the Chinese market, Minister of Industry and Trade Nguyen Hong Dien also noted that China is no longer an easy market The Minister believes that when China reopens its economy after the COVID-19 pandemic, it is both an opportunity and a significant challenge for us We must accurately identify and assess the current situation of the Chinese market in order to exploit its strengths and advantages

Source: Phan Trang – baochinhphu.vn