In addition to the favorable factors, the export activities of Vietnam’s goods in the coming time will also have many difficulties and challenges.
Vietnam’s trade activity in the first 5 months of 2021 recorded high growth compared to the same period last year despite the effects of the COVID-19 epidemic and the shortage of empty containers, logistics costs, raw material prices. into the high…
According to the General Statistics Office, in the first 5 months of 2021, Vietnam’s export turnover of goods is estimated at 131 billion USD, up 31% over the same period last year.
In the opposite direction, import turnover was estimated at 131 billion USD, up 36.4% over the same period last year.
The high import turnover was partly due to the recovery of domestic production after a tumultuous year due to the impact of the COVID-19 pandemic. In addition, the high price of input materials also caused the import turnover to bounce up significantly.
The growth rate of imports is higher than that of exports, leading to a trade deficit in goods in the first 5 months of this year with a trade deficit of 369 million USD.
In the last 2 months, the trade deficit reached USD 1.23 billion in April 2021 and USD 2 billion in May 2021, respectively.
The prospect of Vietnam’s commodity exports in the near future is considered to be relatively positive in the context that demand in major markets is recovering as well as taking advantage of the advantages of FTAs being promoted. effective.
However, exports still have potential risk factors when the COVID-19 epidemic is still happening very unpredictably, while input costs such as logistics and imported materials continue to increase and show no signs of being affected. hypothermia…
Data from the General Department of Vietnam Customs and the General Statistics Office. (Hoang Hiep chart)
The driving force for export growth in the coming time
According to economic experts, the recovery of the global economy, especially Vietnam’s major trading partners such as the US, China, and the EU, will be the main driving force for export activities. Vietnamese goods in the near future.
In the country, the Government, agencies and sectors as well as the business community are making efforts to implement many solutions to control the epidemic as well as maintain production activities.
In Bac Giang province, after having to suspend operations from mid-May 2021, 9 enterprises in 3 industrial parks of the province have been allowed to operate again, including a number of companies producing components. electronics for Foxconn and Samsung…
Meanwhile, in order to create maximum favorable conditions for the circulation and consumption of agricultural products for export, the Import-Export Department (Ministry of Industry and Trade) has sent a written request to the Regional Import-Export Management Departments to create favorable conditions for export and import of agricultural products. It is most convenient when issuing Certificates of Origin (C/O) for exported agricultural products.
Especially agricultural products in localities affected by the epidemic such as Bac Giang and Hai Duong and items that are in season, have a short harvest time such as litchi.
The situation of lychee consumption is also showing good signs despite the complicated developments of the COVID-19 epidemic. According to the Plant Protection Department, a total of 50 tons of Hai Duong and Bac Giang lychees have been exported to Japan by Vietnamese enterprises from May 23 to present.
According to the feedback of the Japanese market, the lychee batches exported to this country from May 23 to now are “better quality than last year”. Lots of lychee were sold out only a few hours after being distributed at supermarkets and online sales channels.
Besides the above factors, the driving force for export growth also comes from the positive prospect of attracting foreign investment.
According to the General Statistics Office, as of May 20, the total newly registered capital, adjusted and contributed capital, purchased shares and purchased capital contributions from foreign investors reached nearly 14 billion USD, an increase of nearly 14 billion USD. 0.8% over the same period in 2020.
Realized capital of foreign direct investment projects is estimated at 7.15 billion USD, up 6.7% over the same period in 2020. Notably, in the first months of 2021, there have been many large FDI projects. invested in Vietnam.
At the same time, in the context that most of the exporters in Asia are facing general difficulties due to the COVID-19 epidemic and high logistics costs, taking advantage of the advantages from the Free Trade Agreements is considered a good thing. is the key to boosting Vietnam’s export growth in the coming time.
According to data from the General Department of Customs, in the first four months of 2021, Vietnam’s export turnover to partners that have signed free trade agreements with our country increased sharply compared to the same period in 2020. such as: EU increased by 21.7%, UK increased by 23.9%, Canada increased by 30%…
There are still many risks from the COVID-19 epidemic
The situation of the COVID-19 epidemic is still complicated both in the country and around the world. Currently, the 4th outbreak of COVID-19 is in many localities, especially some key provinces and cities with the largest scale of import and export turnover of the whole country such as Bac Giang, Bac Ninh, and Hanoi. , Ho Chi Minh City … are causing many difficulties for the production activities of enterprises.
Due to the impact of the epidemic, Vietnam’s trade activities, after a strong increase in the first quarter, have somewhat slowed down in the second quarter.
According to the General Statistics Office, export turnover in May decreased by 2.1% compared to April, estimated at 26 billion USD; while import turnover was estimated at 28 billion USD, up 0.8%.
In the world, Asia continues to be the focus with a rapidly increasing number of new COVID-19 infections, causing a series of countries such as India, Japan, Taiwan, Singapore,
Indonesia or Thailand must impose a blockade and tighten control measures to limit the spread of the disease.
Besides that, High input costs such as logistics and imported materials are a hindrance to export activities. Currently, the cost of shipping a container of goods by sea from Asia to the US and Europe has skyrocketed to more than 10,000 USD, a record number, showing the difficulty that exporters and importers face. are facing while supply chains are stretched.
After a period of decline due to the pandemic in 2020, global consumer demand surged again and companies began to fill warehouses, leading to an extremely exciting sea freight activity. motion.
In addition, disruptions – from the Suez Canal blockage in late March to congestion at seaports – have resulted in slow deliveries and increased costs for importers and exporters. .
Meanwhile, the import prices of input materials such as iron and steel, fertilizer, corn, soybeans, gasoline, etc. have continuously increased in recent years, causing many difficulties for the import of production materials. of domestic enterprises.
In addition, the fact that the export markets of agricultural, forestry and fishery products have continuously introduced changes in food safety certification regulations in recent years, also causing certain difficulties for the export of this group of goods. Vietnam.
Not only agricultural, forestry and fishery products, the trend of trade protectionism for many other goods is also increasing.
On May 5, the Canada Border Services Agency (Investigative Agency – CBSA) decided to apply a temporary anti-dumping and anti-dumping tax on upholstered seats from May 5, 2021 with a tax rate from 0%. up to 11.73%.
In mid-May, the US Department of Commerce (DOC) officially announced the initiation of an anti-dumping investigation on honey products originating from a number of countries, including Vietnam.
Also in May, India made a notice to initiate an anti-dumping investigation on solar battery products originating or imported from China, Thailand and Vietnam.
Most recently, the Turkish Ministry of Trade has also received an anti-dumping lawsuit against fully stretched yarn products originating or imported from Korea and Vietnam.
According to VietnamBiz
