AsemconnectVietnam - Vietnam’s exports in the first half of 2023 have faced significant challenges due to the global economic downturn and high inflation.

According to the General Statistics Office, there were 27 export items with a value exceeding $1 billion, a decrease of 2 items compared to the same period last year, accounting for 90.1% of the total export turnover. Among them, 5 export items exceeded $10 billion, representing over 57% of the total export value.
The total import-export turnover of goods in the first six months of 2023 is estimated at $930.6 million, a 14.2% decrease compared to the same period. Specifically, the export turnover is projected to reach $730 million, down 14.4%, while the import turnover is expected to reach $200.6 million, a decrease of 13.4% compared to the same period last year. The trade balance remains positive with an export surplus of $529.4 million.
The main reasons for the decline in export value are the prolonged conflict between Russia and Ukraine, which has greatly affected the global economy, especially in Europe. Furthermore, the year 2023 is forecasted to be challenging for export-import activities due to projected high inflation and a global economic recession, leading to reduced purchasing power and consumption. This has resulted in a sharp decrease in export orders for many key industries. Businesses are struggling to secure contracts with partners due to a shortage of orders, production difficulties, rising production costs, and interest rates.
Agricultural exports  down 11.1% in value
In the first six months of 2023, the export turnover of agricultural, forestry and fishery products reached 24.59 billion USD, down 11.1% over the same period in 2022.
It is forecasted that in the last 6 months of the year, these commodities will continue to face a series of difficulties in terms of new orders and market expansion. Focusing on speeding up the exports of key products is an important solution to achieving the goal of agricultural, forestry and fishery exports at 55 billion USD.
According to the Ministry of Agriculture and Rural Development (MoARD), in the first six months of 2023, China, the US and Japan continued to be the three largest export markets for Vietnam's agricultural, forestry and fishery products. Export value to China, the US and Japan accounted for 21.4% (up 7.7%), 20.2% (down 32.9%) and 7.7% (down 5.3%), respectively.
Rubber exports down by 22.9% in value
In the first 6 months of 2023, Vietnam’s rubber exports reached about 766,000 tonnes, worth of 1.05 billion USD, down by 2.6% in volume and by 22.9% in value over the same period of 2022.
According to the General Department of Customs, the Import and Export Department (under the Ministry of Industry and Trade) said that it is estimated that Vietnam's rubber exports in June of 2023 reached about 180,000 tonnes, worth of 239 million USD, an increase of 53.7% in volume and 51% in value compared to May of 2023, but down by 4.2% in volume and by 23% in value compared to June of 2022.
The average export price of rubber was at 1,327 USD/tonne, down by 1.8% compared to May of 2023 and 19.6% lower than June of 2022.
In the first 6 months of 2023, rubber exports reached about 766,000 tonnes, worth of 1.05 billion USD, down by 2.6% in volume and by 22.9% in value over the same period of 2022.
Exports 4.2 mln tonnes of rice in H1
Vietnam earned 2.3 billion U.S. dollars from exporting 4.2 million tonnes of rice in the first half of this year, local media reported on Wednesday, citing the Ministry of Agriculture and Rural Development. Its largest rice importers include the Philippines and China, according to the ministry.
Vietnam will export more rice to the Philippines, which could have its domestic food production affected by the impact of the El Nino phenomenon in the second half of this year, the local newspaper Vietnam News reported on Wednesday.
In the six-month period, Vietnam's rice export increased 22.2 percent in volume and rose 34.7 percent in value year on year, according to the General Statistics Office.
Seafood exports down 27% in 1H
Vietnam earned nearly $4.2 billion from seafood exports in the first half of this year, down 27 per cent compared to the same period last year, according the Vietnam Association of Seafood Exporters and Processors (VASEP).
Among key products, shrimp exports stood at $1.6 billion, a year-on-year decline of 31 per cent, and tra fish $885 million, down 38 per cent.
The fall in exports was blamed on low consumption demand, rising prices of production materials and inflation, as well as tightened control relating to food safety and hygiene and illegal, unreported and unregulated fishing (IUU) regulations in markets like the EU, according to VASEP. Vietnam is also facing fiercer competition from countries such as Ecuador and India.
However, VASEP forecast that seafood exports would gradually recover in the second half of the year due to positive signs from consumption markets, with orders increasing for the festive season at year-end.
Compiled by T.Huong
Source: Vitic