In the first five months of the year, Vietnam’s export revenues reached $42.9 billion, a year-on-year increase of 24.1 per cent.
In the first five months of the year, Vietnam’s export revenues reached $42.9 billion, a year-on-year increase of 24.1 per cent. However, things may not go smoothly in the coming months even in sectors considered to be the country’s biggest export earners, experts say.
The textiles and apparel industry, for instance, exported goods worth over $1.1 billion in May. It was the third consecutive month that the industry saw a decrease in export revenues.
Consequently, the industry’s export value in the first five months of the year was only $5.3 billion, up by only 7.7 per cent – much lower than in previous years.
The second and third quarters are known to be the apparel and textile industry’s peak season. However, most enterprises are finding it difficult to get export orders. Some enterprises have won orders but their value has decreased significantly.
Meanwhile, the industry is also facing many other obstacles including a shortage of capital and raw materials for production, increasing input costs and environment fees, decreasing purchasing power in both domestic and overseas markets, and increasing inventory volumes.
A similar situation can be seen in the footwear industry. Prolonged economic recession in the industry’s main export markets has resulted in a sharp decrease in the number of orders won by enterprises.
Although the fisheries sector still achieved a positive growth rate in the first months of the year, its profits from domestic and overseas business activities have dropped sharply.
Since the beginning of the year, the number of enterprises involved in seafood export has decreased by 40 per cent. The main reason for this slowdown is that they are not able to buy enough raw materials and maintain production, with farmers refusing to sell on credit. Many seafood companies do not have enough capital to pay the farmers.
It is estimated that about 30 per cent of seafood firms are in danger of stopping operations or closing down.
Senior economist Le Dang Doanh says rising input prices of raw material in combination with decreasing consumption in the world market are major obstacles facing Vietnamese exporters.
He said the government should come up with effective measures to support export firms at this time.