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Export of goods: Need to improve internal strength 

 Wednesday, December 25,2024

AsemconnectVietnam - In 11 months of 2024, goods exports grew by double digits. FTAs actively support businesses. By increasing internal strength, businesses will increase turnover.

Goods exports grow by double digits
According to report of Ministry of Industry and Trade on the implementation of Resolution No.01/NQ-CP, situation of industrial production and trade activities in November and 11 months of 2024 shows that preliminary export turnover of goods in November 2024 reached 33.73 billion USD, down 5.3% compared to the previous month.
In 11 months of 2024, preliminary export turnover of goods reached 369.93 billion USD, up 14.4% over the same period last year, a high increase compared to many countries in the ASEAN region and Asia.
In which, domestic economic sector reached 103.88 billion USD, up 20%, accounting for 28.1% of total export turnover; foreign-invested sector (including crude oil) reached 266.05 billion USD, up 12.4%, accounting for 71.9%.
This shows that export of domestic economic sector continues to grow higher than FDI sector (20% compared to 12.4%) and proportion of export turnover of this sector in total export turnover of the country is higher than the same period last year (28% compared to 26.8%), which are positive signals in export activities of this sector.
In textile and garment sector, Mr. Tran Nhu Tung - Vice President of the Vietnam Textile and Apparel Association, Chairman of the Board of Directors of Thanh Cong Textile - Investment - Trading Joint Stock Company - said that in 2024, textile and garment industry is expected to have many improvements, with export turnover estimated at 44 billion USD, an increase of 10% compared to last year.
However, this growth has not really broken through, because in 2023, textile and garment export turnover reached a low level. The increase in 2024 will only bring the total textile and garment export turnover back to the same level as in 2022.
It is forecasted that by 2025, textile and garment industry will grow by about 10%, with an estimated export turnover of 47-48 billion USD. The results achieved in 2024, along with changes in policies of US President Donald Trump, show that, in theory, Vietnam's textile and garment exports can continue to grow.
"Currently, Vietnam is only behind China in textile and garment exports to the US. When the US imposes higher tariffs on textiles imported from China, Vietnamese textiles and garments will have more advantages," said Mr. Tran Nhu Tung.
In field of agriculture, forestry and fishery, Mr. Do Ha Nam - Vice President of Vietnam Coffee - Cocoa Association, Vice President of the Vietnam Food Association, Chairman of Board of Directors and General Director of Intimex Group Joint Stock Company - informed that Vietnam's agricultural sector currently ranks 15th in the world in terms of exports, with many industries holding leading positions such as pepper, coffee and rice. Intimex Group exports agricultural products from 1.3 to 1.6 billion USD each year.
In the past, when mentioning rice, people thought of poor farmers. A few years ago, farmers only dreamed of selling fresh rice for 4,000 VND/kg, now it has reached 8,000 VND/kg. Rice acreage and productivity have not increased, but this year's exports could reach a record 9 million tonnes. Vietnamese farmers are currently growing rice according to market demand.
In coffee industry, price of Robusta coffee has never been higher than it is now. Reason is that the whole world uses Vietnamese Robusta coffee. This year, Vietnamese farmers regulate market, businesses only provide services. "In 2024, coffee prices will continue to increase, at times peaking at 130,000 VND/kg, while the cost is less than 40,000 VND/kg. Dak Lak farmers are very rich now," said Mr. Do Ha Nam.
Commenting on picture of goods exports in the first 11 months of 2024, Dr. Can Van Luc - Member of National Financial and Monetary Policy Advisory Council - informed that import and export growth was positive, with exports increasing by about 14 - 15% compared to last year. Among Vietnam's 6 largest trading partners, China, the US, ASEAN, South Korea, EU and Japan account for about 77% of Vietnam's total import and export turnover. This year's export markets all recorded very good growth. Of which, exports to the US were relatively good, about more than 23%; to the EU and other countries were also positive.
Need to improve internal strength of domestic enterprises
In addition to achieved results, there are still shortcomings in the export of goods. Dr. Tran Du Lich - member of National Financial and Monetary Policy Advisory Council - acknowledged that we are proud of our high export turnover, especially in electronics, mobile, semiconductor chip industries... However, value that Vietnam actually earns is still very modest.
Many export items to the US have very large value but the part that Vietnam benefits from is very small. For example, in field of semiconductor chips produced in Vietnam, we mainly participate in packaging stage with a value of only about 3.5% of total value. The same is true for mobile phones. This shows that increasing localization rate and increasing value in the supply chain in Vietnam is an urgent task.
Mr. Do Ngoc Hung - Trade Counselor, Head of Vietnam Trade Office in the United States - informed that when Mr. Donald Trump takes office as President, President Donald Trump's new policies will affect the world economy and Vietnam. "He expressed his view that he wants to consider fair taxes with partners and wants to reduce trade deficit towards the United States. It is predicted that the world's goods supply chain will shift when the United States changes its policies and Vietnam can benefit from this shift," said Mr. Do Ngoc Hung.
Vietnam ranks third after China and Mexico, causing the US to have a trade deficit, so it will be urgent to focus on the issue of balancing trade. Vietnam can increase imports of wood, chemicals, and high technology.
According to Mr. Do Ngoc Hung, in the near future, the US may increase trade defense investigations, so businesses need to pay attention to origin of goods. At the same time, it is necessary to reduce costs to increase competitiveness. The US also plans to impose a 10% import tax, which if applied evenly will not have much impact on Vietnamese businesses. Currently, some countries are using law firms that understand "policy lobbying" to be able to lobby for policies and prevent policy risks from afar.
In order for businesses to make good use of export opportunities, from an expert perspective, Dr. Can Van Luc believes that businesses need to grasp major trends such as: Dual development trend of "greening and digitalization", integrating ESG factors, sustainable development; to stay ahead of technology trends, especially new technologies.
In addition, it is necessary to diversify markets, partners, supply chains, products - services, and feasible capital sources for green transformation, circular business, and participation in the carbon credit market. At the same time, take advantage of opportunities from new-generation free trade agreements (FTAs) and from upgrading Vietnam's relations with the United States, Japan, Australia, Malaysia, etc.
To accompany businesses, associations and industries in exporting goods in the coming time, Ministry of Industry and Trade said that it will focus on effectively exploiting FTAs that have come into effect and signed, implementing new agreements to expand and diversify markets, import and export goods, and supply chains. Strengthening exploitation of neighboring markets with potential, shifting strongly to official exports associated with brand building, promoting sustainable exports.
Continue to innovate and improve effectiveness of trade promotion work, accelerate completion of legal system to strengthen trade defense regime towards protecting domestic economy, businesses and market in accordance with international commitments.
Continue to improve effective use of trade defense tools to protect domestic production and effectively support Vietnam's export industries to effectively respond to foreign trade defense cases. At the same time, closely monitor and promptly and fully assess impacts of US policy changes, especially after President Donald Trump takes office at the end of January 2025, to respond promptly and appropriately.

Source: Vitic/ congthuong.vn
 

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