Exports recovered 87.9% over the same period

The report of the Ministry of Industry and Trade shows that, in terms of exports , export turnover has basically maintained its upward momentum and after 6 months is estimated at 164.45 billion USD, has recovered 87.9% over the same period in 2022.

In the first 6 months of the year, the export turnover reduction rate of the domestic economic sector (down 11.9% over the same period last year) was slower than that of the FDI sector (down 12.2% compared to the same period last year). same period last year), showing the efforts of domestic enterprises in recovering production and business in difficult conditions.

It can be clearly seen that the export of vegetables, fruits and rice was the bright spot in the country's exports in the first 6 months of the year when it achieved a double-digit increase. In which, rice export turnover increased by 34.7% over the same period last year (exported rice output increased by 22.2% over the same period last year); fruit and vegetable exports increased by 64.2% over the same period last year.

Rice export is a bright spot in the picture of commodity exports in the first half of 2023

Rice is one of the bright spots in the export picture in the first half of this year. According to the Vietnam Food Association, the price of many types of rice in Vietnam is still higher than that of Thailand and India. Specifically, the price of Vietnam's 5% broken rice in the first weeks of June 2023 reached about $498/ton, while the price of rice from Thailand and India was $492/ton and $453/ton, respectively. Vietnam's 25% broken rice also recorded a price of 478 USD/ton, about 10 USD/ton higher than Thailand, about 50 USD/ton higher than India.

On the business side, Mr. Pham Thai Binh, General Director of Trung An High-Tech Agriculture Joint Stock Company, said that the General Director of Trung An Hi-Tech Agriculture Joint Stock Company said that in April, the company also won the award. contractor to export 11,347 tons of long grain brown rice to the Korean market at a good price, nearly 600 USD/ton. Since the beginning of the year, the company has exported more than 5,000 tons of rice to the European market; about 32,000 tons of rice to Korea; Besides, it also exports to markets such as: Middle East, Malaysia, China...

Notably, the company not only exports rice, but is also expanding the export of deeply processed rice products such as noodles, pho, vermicelli... to the US and European markets. This is a very high value segment, because if the processed rice is priced at nearly $700/ton, the value of the processed product can raise the value of that 1 ton of rice to $2,500-3,000.

There were 27 items with export turnover of over 1 billion USD (decreased by 02 items over the same period), accounting for 90.1% of total export turnover (there are 5 export items of over 10 billion USD, accounting for 57 ,8%).

Notably, some export markets recovered positively to nearly the same period last year such as India (95.7%), Japan (96.7%), China (97.8%). Some new markets recorded high growth such as Argentina (up 35% over the same period), Saudi Arabia (up 67%), Algeria (up 91%).

However, besides those rare bright spots, in general, exports are still facing many difficulties when the export turnover in the first 6 months of the year decreased by 12.1% over the same period in the context of global trade. demand growth was slow when exporting goods to key markets all decreased compared to the same period last year, such as: exports to the US market decreased by 22.6%, the EU decreased by 10.1%; China down 2.2%; Korea down 10.2%; Japan fell 3.3%; ASEAN down 8.7%...

In addition, the export turnover of most of the products in the processing and manufacturing industries decreased, including key export items such as: textiles, down 15.3%; footwear of all kinds, down 15.2%; phones and accessories down 17.9%; wood and wood products down 28.8%, all kinds of fertilizers down 45.6%...

“Some export industries such as seafood, wood and wood products, iron and steel, and plastic products continue to face pressure on trade remedy investigations, which has created difficulties in export markets during this time. past time. Some agricultural products still rely too much on the form of exchange of residents and small quotas, so there is always a potential risk of congestion at the border gate, affecting cross-border trade," the report stated .

Import turnover decreased in almost all commodity groups

Regarding imports, according to the Ministry of Industry and Trade, basic imported goods are well controlled as imports of goods for production for export and essential goods account for 88.1%; imports of the group of goods to be controlled accounted for only 6.2% and the other group of goods accounted for 5.7%.

Import turnover in the first 6 months of the year decreased by 18.2% over the same period due to difficulties in export orders and reduced world demand, so the demand for importing raw materials for production for export decreased. Import turnover of commodity groups requiring import restriction decreased by 13% over the same period last year, estimated at US$9.4 billion.

Import turnover of key products all decreased such as: computers, electronic products and components estimated at 38.27 billion USD, down 11.4% over the same period last year; machinery, equipment, tools and spare parts decreased by 12.3%, reaching 19.7 billion USD; fabrics of all kinds decreased by 19.2%, reaching 6.4 billion USD; steel of all kinds down 32.3%; petrol and oil of all kinds decreased by 18.4%; all kinds of rubber down 41.2%; cotton of all kinds decreased by 21.5%; chemicals down 24.2%; fertilizer decreased by 28.1%... Especially, the import turnover of phones and components of all kinds continued to decline sharply, reaching only 3.45 billion USD, down 66.5%.

Regarding the import market of goods in the first 6 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 USD 50.09 billion, down 18.7% over the same period last year; followed by South Korea, estimated at 24.2 billion USD, down 25.6%; ASEAN market is estimated at 20.3 billion USD, down 16.9%; Japan reached 9.8 billion USD, down 18.7%; EU reached 7.06 billion USD, down 10.7%; The United States reached 7 billion USD, down 7.3%.

Thus, the trade balance continued to maintain the trade surplus at a high level, reaching 12.25 billion USD (the same period last year, the trade surplus was 1.16 billion USD), contributing to ensuring the balance of payments, supporting the work of the economy. exchange rate management. In which, the domestic economic sector had a trade deficit of 9.81 billion USD; FDI sector (including crude oil) had a trade surplus of 22.06 billion USD.

Import and export in the second half of the year will be like?

The Ministry of Industry and Trade pointed out that in the second half of the year, the weak recovery of major economies such as the US and China has reduced oil prices in the world (the period of oil price reduction on June 12, 2023). of the Ministry of Finance did not change much compared to the previous adjustment period). At the same time, the reopening of China's economy will continue to increase opportunities for Vietnam to boost exports, investment and tourism.

Industry and Trade industry strives for export turnover to increase by about 6%, maintaining trade surplus

In addition, the fact that industrialized countries continue to promote the strategy of diversifying supply sources, diversifying supply chains, and diversifying investments (China +1) will help Vietnam become a center of the world. manufacturing and exporting important in the global value chain.

Vietnam's role is increasing in ASEAN along with the fact that this region is the center of influence of major market countries and is also one of the regions that still maintain its growth and economic strength, making it difficult for the world to develop. ASEAN becomes an increasingly important market in foreign and economic policies of countries: EU builds Indo-Pacific strategy; The US promotes IPEF negotiations, the UK successfully negotiates to join the CPTPP... will also create favorable conditions for Vietnam's investment, production and export activities in the coming time.

In particular, existing FTAs with major market partners of Vietnam such as the European and American markets continue to have a positive impact on Vietnam's trade, investment and especially exports. . Some apparel products will begin to enjoy 0% import tax into the EU market under the EVFTA agreement... will be favorable conditions for businesses to boost exports to these markets.

However, the instability and uncertainty of the global economy is at its highest level in many years, affecting the macroeconomic stability and growth prospects of Vietnam in the coming time when our country is the largest economy in the world. With a large open economy, in the coming time will also depend significantly on the ability to diversify export markets, take advantage of opportunities from FTAs and handle risks associated with trade competition. - technology between major countries, international policies that have a strong impact on sectors and areas such as the application of a global minimum corporate tax, EU regulations on the import of agricultural products related to related to forests, fishery products...

In the coming time, the Ministry of Industry and Trade is determined to continue to promote exports, create new orders to consume output products, promote production for businesses such as supporting businesses to take advantage of commitments in the Agreements. FTA agreements, especially CPTPP, EVFTA, UKVFTA agreements to promote exports, through guidance on application of rules of origin, granting preferential certificates of origin to exploit opportunities from the agreements.

In addition, promoting negotiations and signing of new agreements, commitments and trade links to diversify markets, products and supply chains. Expanding export markets for Vietnamese goods through trade promotion , Vietnam's Trade Office abroad, and e-commerce development. Organizing connections to help domestic enterprises join the supply chain of FDI enterprises, especially large global enterprises, and participate in overseas distribution systems.

In 2023, despite many difficulties, the Industry and Trade industry strives to increase export turnover by about 6%, maintaining a trade surplus.