Export growth expected at 3-4pct this year

21-Oct-2020 Intellasia | VNS | 6:02 AM Print This Post

Vietnam’s exports this year could grow by 3-4 per cent despite the COVID-19 pandemic, according to the Ministry of Industry and Trade (MoIT).

The ministry said in the first nine months of the year, the country’s export activities still maintained positive growth while many economies in the world and the region saw negative growth. This shows local production activities have gradually recovered after being hit by the pandemic.

Statistics from the ministry showed that the export turnover in January-September period increased by 4.1 per cent over the same period last year. Notably, the export turnover in the third quarter of the year reached $80 billion, representing an 11 per cent year-on-year increase and up 34 per cent from the previous quarter.

“This showed that exports have recovered positively in the third quarter of 2020. This recovery focused on the group of processed industrial goods, with the export turnover increasing by 4.7 per cent over the same period in 2019, accounting for 84.6 per cent of the total export turnover,” said deputy minister Do Thang Hai.

Imports decreased by 0.7 per cent compared to the corresponding period last year, but turnover decreased in groups that do not serve production, such as less than 9-seat cars; cameras, fruits and vegetables. Meanwhile, imports of mainly raw materials and fuels for production only decreased by 0.3 per cent over the same period last year.

Therefore, in the third quarter of 2020, the import turnover reached $68.5 billion, up 3 per cent over the same period last year and 18.5 per cent over the previous quarter, showing that production began to recover, increasing import demand.

Hai said the ministry has reviewed sectors to update and consider solutions to remove difficulties for businesses, promoting production and exports.

Industrial production, exports and domestic trade for the whole year of 2020 are expected to be more positive than the assessment in July.

“Exports to the US and other markets would also have a higher growth rate compared to the beginning of the year due to the increasing demand for consumption in the last months of the year,” he added.

EVFTA enhances growth

Vietnam officially implemented the Vietnam EU Free Trade Agreement (EVFTA) from the beginning of August. The implementation has seen positive results. In addition to seafood, prices of rice exported to the EU have increased compared to before the agreement took effect.

Many other products such as mobile phones, machines, spare parts, garments and textiles, seafood and coffee were also expected to see an increase in export turnover in the European market.

Tran Thanh Hai, deputy Head of MoIT’s Import-Export Department, said in August, Vietnam’s export turnover to the EU reached $3.25 billion, up 4.65 per cent over the same period last year. In September, export turnover to this market continued to maintain strong momentum, up about 14.4 per cent over the same period last year.

“The positive results showed that the implementation of the EVFTA has helped businesses take advantage of the market, especially in the context that the economy has been heavily affected by COVID-19. Currently, businesses have applied the provisions of the EVFTA,” Hai said.

The ministry would promptly provide information on the market to businesses, through co-ordinating with trade agencies as well as trade promotion organisations, helping businesses develop better plans.

It would also increase trade promotion and brand building. Recently, many businesses have promoted the application of digital technology in organising trade promotion activities online. The trade facilitation will also continue to be promoted by the MoIT. It would review and simplify regulations on business conditions; as well as co-ordinate with industries to cut logistics costs.

“In the long term, the MoIT would co-ordinate with industries to promote production restructuring to increase high-quality export products, to meet the market’s demand and increase the localisation rate in exports. For agricultural products, the ministry will co-ordinate with the Ministry of Agriculture and Rural Development to promote large scale agricultural production associated with preservation, processing, purchasing and consumption and thereby promote the production linkage,” he added.

https://vietreader.com/business/finance/19867-export-growth-expected-at-3-4-this-year.html

 

Category: Economy, Vietnam

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