AsemconnectVietnam - The US, China and EU are still Vietnam's largest export markets after 5 months, but the exports to these markets are facing difficulties.

According to the Ministry of Industry and Trade, the import-export turnover in May recovered positively and increased compared to the previous month (up by 5.3%, estimated at 55.86 billion USD) but decreased by 12.3% compared to the same period last year. In the first 5 months of 2023, the total import and export turnover of goods was estimated at 262.54 billion USD, down by 14.7% over the same period last year.
Specifically, the country’s commodity export activities in May recovered positively with export turnover estimated at 29.05 billion USD, up by 4.3% over the previous month.
Totally in the first 5 months of 2023, export turnover was estimated at 136.17 billion USD, down by 11.6% over the same period last year.
According to the Ministry of Industry and Trade, in terms of commodity export markets in the first five months of 2023, in general, all industries face difficulties in export markets due to the decrease in global demand, especially for consumer goods, so the export turnover in the first 5 months of 2023 of our country to most of the main markets decreased, however, the level of impact on the export of each commodity sector was different.
Many factors supported textile and garment exports to the EU
Textile and garment exports faced many market difficulties in the first months of the year
Industries such as textiles and garments, leather and footwear, wood, and seafood with the main export markets of the US, EU, etc. had the biggest decline. Sectors such as rubber, rice, vegetables, cashew nuts, etc. with the main export market of Asia were less affected. At the same time, a number of export industries such as seafood, wood and wood products, iron and steel, and plastic products are facing pressure on trade remedy investigations. The increased cost of input materials has affected the competitiveness of export goods, etc. also created difficulties in export markets.
Leading export markets
Regarding specific markets, the US was still Vietnam's largest market in the first 5 months of 2023, accounting for 26% of the country's total export turnover. The fact that the Fed maintains interest rate increases for a long time has achieved certain results in dealing with high inflation.
However, consumer spending showed signs of slowing down and is expected to continue to weaken in the context of many business bankruptcies, job cuts and warnings about the recent economic recession; higher savings rate, a sign that people are becoming more cautious in consumption, has affected Vietnam's exports to this market. Therefore, the import demand of this market for Vietnam's goods continued to decline sharply over the same period, estimated at 37 billion USD, down by 19.5% (in the first 4 months of this year, it decreased by 21% compared to the same period last year).
For example, seafood exports to the United States have fallen sharply in recent years. In April of 2023, seafood exports to the US fell by 53%. According to the Vietnam Association of Seafood Exporters and Producers (VASEP), the impact of inflation on the US market is increasing. American families are too "tired" with the fact that food prices are so high. Now, Americans are thinking about cutting spending on low-value items, buying less non-essential groceries, buying bulk and unbranded products, and focusing on more affordable products. Some people even buy and eat less. In general, consumers only spend on goods they really need.
China is Vietnam's second largest export market, although this market has opened its border since January 8, 2023, the Chinese economy has not recovered as expected. The economy of this country faces many challenges when exports decelerate due to global demand decline; the real estate sector - an important pillar of the Chinese economy is still struggling; unemployment has directly affected the demand for goods of the people of this country, etc. Meanwhile, the standards for China's imported goods have become increasingly strict.
These were the main reasons leading to Vietnam's export turnover to China in the first 5 months of 2023 estimated at 19.8 billion USD, down by 9.3% over the same period last year (in the first 4 months, the figure was down by 7.9% over the same period last year).
The decline in Vietnam's goods exports to the EU market has shown signs of improvement when inflation rates in some major Eurozone economies have "cooled down". Specifically, the consumer price index (CPI) in May decreased (the inflation rate of Germany in May of 2023 only increased by 6.1% over the same period; that of France decreased to 5.1% compared with an increase of 5.9% of the previous month; Spain down to 3.2%; Italy down to 7.6%, etc.).
Therefore, the exports to the EU market in 5 months were estimated at 18.4 billion USD, down by 6.5% over the same period (compared to the first 4 months, the figure was down by 14.1%).
CK
Source: VITIC/congthuong.vn