All industries face difficulties in export marketsThursday, June 8,2023
AsemconnectVietnam - According to the Ministry of Industry and Trade, in the first 5 months of 2023, Vietnam’s export activities continued to be affected by difficulties in production and a decrease in export orders, in addition to the decrease in export prices.
Although, in May, goods export activities showed positive signs of recovery with export turnover estimated at 29.05 billion USD, up by 4.3% compared to the previous month. However, in the first 5 months of the year, the country’s export turnover was estimated at 136.17 billion USD, down by 11.6% over the same period last year. The export turnover of the domestic economic sector reached 35.19 billion USD, down by 13.2%, accounting for 25.8% of total export turnover; while the export turnover of the foreign-invested sector (including crude oil) reached 100.98 billion USD, down by 11.1%, accounting for 74.2%.
According to the Ministry of Industry and Trade, besides the decrease in export orders, the decrease in export prices was also one of the factors that reduced our country's export turnover in the first 5 months of this year.
The average export price of many commodities decreased compared to the same period last year, such as tea down by 7.9%, cashew nuts down by 1.5%, pepper down by 34.3%, rubber down by 21.1 %, fertilizer down by 35.2%, plastic raw material down by 24.4%, etc. Only a few items had an increase in export price, such as rice up by 7.9%, coffee up by 3.5%, coal up by 38.5%, etc.
Notably, all industries faced difficulties in export markets due to the decrease in global demand, especially for non-essential consumer goods. Therefore, the export turnover in the first 5 months of 2023 to most of the key markets decreased with different levels of impact.
Several sectors such as textiles and garments, leather and footwear, wood, seafood with the main export markets of the US, EU, etc. saw the biggest decline; while the sectors such as rubber, rice, vegetables, and cashew nuts, etc. with the main export markets of Asia were less affected.
In addition, 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 also affects the competitiveness of exported goods, and this also creates difficulties in the export market", the Ministry of Industry and Trade assessed.
Among the main export markets, the United States was still the largest export market of Vietnam in the first 5 months of 2023, accounting for 26% of the total export turnover of the country.
According to the Ministry of Industry and Trade, the Fed's maintenance of interest rate hikes 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; the savings rate has increased higher, a sign that people may be becoming more cautious in consumption, etc. 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 last year, estimated at 37 billion USD, down by 19.5% (in the first 4 months, the figure decreased by 21% compared to the same period last year).
China is Vietnam's second largest export market. Although this market has opened its border since January 8, 2023, the economy has not recovered quickly, facing many difficulties when exports decelerate due to declining global demand. Unemployment has directly affected the consumer demand for goods of the Chinese people, along with the increasing demand for goods standards, etc. are the main reasons leading to difficulties for Vietnam to export goods to this market.
Therefore, Vietnam's export turnover to China in the first 5 months of 2023 was estimated at only 19.8 billion USD, down by 9.3% over the same period last year (in the first 4 months of this year, the figure was down by 7.9% compared to the same period last year).
As for the EU market, the decline in exports to this market is assessed as showing signs of slowing down. Therefore, the country’s exports to the EU market in the first 5 months were estimated at 18.4 billion USD, down by 6.5% over the same period last year. In the first 4 months of the year, the figure was down by 14.1%.
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