Export markets are recovering but not yet sustainably
According to data from the General Statistics Office, a stronger recovery in export orders in March helped the footwear industry bring in export revenue of 1.7 billion USD, the highest level since the beginning of the year, increasing total exports in the quarter. I/2024 reached 4.85 billion USD, an increase of 11.7% over the same period last year. If including handbag export turnover of 866 million USD (up 5.2% over the same period) in the first quarter of 2024, the entire leather and footwear industry brought in a turnover of more than 5.7 billion USD.
| Orders have returned to many textile, garment and footwear businesses |
Exports grew by double digits in the first quarter, but the Vietnam Leather – Shoe – Handbag Association (Lefaso) said that market difficulties still remain because total demand has not fully recovered, Vietnamese businesses are still Must closely monitor market information to have appropriate production and business plans, making the most of opportunities from markets with Free Trade Agreements (FTA) to increase tariff incentives.
Not to mention, a series of regulations on ecological products, extended producer responsibility, supply chain traceability, carbon emission reduction requirements for manufactured products… are approved by manufacturers. EU imports are creating big challenges for supply chain links, including Vietnam.
Along with footwear, in the textile and garment sector, according to Mr. Cao Huu Hieu – General Director of Vietnam Textile and Garment Group (Vinatex), the total world textile and garment demand in 2024 is expected to be at 715 billion USD, a slight increase compared to compared to 2023 but still lower than 2022.
Therefore, the group’s key task in 2024 is to consistently implement the proposed solutions in the best way and continue to monitor and forecast the situation to respond flexibly.
In all cases, when identifying long-term difficulties and ineffective conventional solutions, we need to think about the problem of restructuring. Review the organizational model, optimize the apparatus, minimize the rate of indirect labor, and focus on market work.
With the wood processing and export industry, by the end of the first quarter of 2024, according to statistics from the General Department of Customs, wood and wood product exports earned 3.4 billion USD, an increase of 18.9% compared to the previous year. the same period in 2023. Of which, the export value of wood products is estimated to reach 2.3 billion USD, up 22.9% over the same period in 2023. A favorable start in the first months of the year with orders Increasing goods and wood industry enterprises speeding up production to keep up with export schedules have opened a positive signal and brought expectations to Vietnam’s wood industry in 2024.
Although the early signs of 2024 are quite optimistic, however, according to Mr. Do Xuan Lap – Chairman of the Vietnam Timber and Forest Products Association, in the US market, regulations on the origin of raw wood are becoming stricter; The US Department of Commerce is amending and supplementing a total of 22 contents related to a number of regulations in anti-dumping and anti-subsidy investigations, including ways to identify some new subsidies such as export insurance. , debt cancellation, direct taxes…
In the EU market, the EU Anti-Deforestation Regulation (also known as EUDR) of the European Union will take effect in December 2024. Vietnam’s regulations on determining the origin of wood do not currently have specific regulations. Indian market, applying new factory evaluation standards, BIS standards, applied in early 2024. Causing difficulties for Vietnamese businesses. Meanwhile, in the Japanese market, the requirement for Vietnamese wood and wood products exported to this market to use wood sources of clear origin is increasingly high;…
Overall implementation of many solutions to support import and export of goods
A report from the Ministry of Industry and Trade said that in the first quarter of 2024, goods exports are estimated to reach 93.06 billion USD, up 17% over the same period last year. In the first quarter of 2024, exports will grow strongly and evenly in all three product groups: agriculture, forestry and fisheries; manufacturing and processing industry; mineral fuel.
 |
| In 2024, the Ministry of Industry and Trade sets an export growth target of 6% |
According to experts, in 2024, the Ministry of Industry and Trade targets export growth at 6%, corresponding to an export turnover of 377 billion USD. To complete this goal, the average export turnover in each remaining quarter of the year must reach 94.67 billion USD – a challenging number.
The Ministry of Industry and Trade also commented that, in general, Vietnam’s import and export activities in 2024, especially exports to key markets such as Europe and America, will have both advantages and face challenges. awake.
Accordingly, in terms of advantages, existing FTAs with partners/markets continue to have a positive impact, maintaining Vietnam’s advantages in trade and investment activities. In addition, world market demand in general and the European and American market regions are gradually recovering because inflation has begun to tend to decrease from the end of 2023 and is likely to approach the target level of the target levels. Central Bank set for 2024 (ECB and FED – 2%).
The fact that industrialized countries continue to promote strategies to diversify sources of supply, diversify supply chains, and diversify investments will help Vietnam become an important production and export center in the value chain. Global. Countries in Europe and America promote the development of green economy, digital transformation, and circular economy, opening up many new cooperation opportunities as well as providing a lot of credit and technology support to Vietnam…
About difficulty, The Ministry of Industry and Trade said that the global economy is entering a new period with many risks, challenges and difficulty in predicting; Economic growth in the world and countries in the European-American region in 2024 is forecast to be lower than in 2023. In addition, geopolitical conflicts continue to prolong and instability continues to pose a risk. spread to other areas.
The trend of deglobalization is continuing to rise strongly. Protectionist policies of countries are increasing day by day. The fact that countries diversify their supply sources outside of China, focusing on a number of partners near the market and partners equivalent to Vietnam such as Turkey, Mexico, India, Indonesia,… will increase competition. on Vietnam’s export markets…
To put effort into exports in the second quarter of 2024 and the remaining months of the year to complete the 2024 plan task of 6% export growth, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said, in his role As the leading agency in the management and administration of import and export activities, the Ministry of Industry and Trade will continue to closely monitor market developments and change partners’ policies to propose appropriate solutions for development. diversify traditional export markets and new markets.
At the same time, continue to promptly inform industry associations about developments in export markets so that businesses can promptly adjust appropriate production plans and orient their search for orders from markets; Regularly maintain trade promotion conferences with the Vietnam Trade Office system abroad.
In addition, direct the Vietnam Trade Office system in market areas to regularly update information on foreign market situations; Regulations, standards, and conditions of foreign markets that can impact Vietnam’s import and export activities and recommendations for localities, associations, and import-export businesses.
On the other hand, effectively exploit FTAs, accelerate negotiations, sign FTAs, and new economic links to diversify markets, supply chains and boost exports; developing logistics services; Support businesses to strongly shift to official export associated with brand building; Strengthen capacity on trade defense, improve the legal system, institutions, and inter-sectoral and local coordination mechanisms;…
According to Congthuong.vn
