Businesses asked to stay vigilant to maintain export growth

Tuesday, May 11, 2021 08:04

Workers in Hung Viet Garment Joint Stock Company in Hung Yen Province. Local businesses asked to stay vigilant to maintain export growth. — VNA/VNS photo Tran Viet

Despite a rise in export revenue in the first four months of this year, experts suggested that businesses should not be too optimistic as the COVID-19 pandemic has undergone complicated developments both in and outside the country.

Statistics from the Ministry of Industry and Trade (MoIT) showed that export value in April grew 44.9 per cent over the same period last year, while in the first four months of 2021 it expanded 28.3 per cent year-on-year to $103.9 billion.

The domestic economic sector earned $25.77 billion, up 12.8 per cent, while the foreign-invested sector, including crude oil, raked in $78.14 billion, a rise of 34.4 per cent and accounting for 75.2 per cent of the total export value in the January-April period.

Tran Thanh Hai, Deputy General Director of the Agency of Foreign Trade under the Ministry of Industry and Trade (MoIT), said in the first four months of 2021, 19 products enjoyed export turnover of over $1 billion, accounting for 84.5 per cent of the total export revenue, including five products earning over $5 billion.

Exports of agro-forestry-aquatic products reached $2.16 billion in April and $8.25 billion in the first four months of this year, up 7.9 per cent year-on-year.

Meanwhile, fuel and minerals was the only group that suffered a reduction in export earnings, at 21.6 per cent, to $922 million.

Hai said that processing sector was a bright spot in exports in the first four months of this year with a rise of 31.2 per cent to $89.73 billion.

He said Viet Nam posted solid export performance in the first quarter of 2021, and at such a growth speed, its export turnover was likely to hit $600 billion for the whole year.

Hai attributed the positive results to Viet Nam’s success in fighting the COVID-19 pandemic.

It is necessary to continue paying special attention to responding to the pandemic, he stressed, noting that this will be the foundation and most important factor in sustaining export growth.

Free trade agreements (FTAs) Viet Nam has signed, especially the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam FTA (EVFTA), have benefited local exporters and helped them expand to new markets

Hai held that the export recovery of the majority of products will make important contributions to the country’s export revenue in 2021.

Meanwhile, imports in April reached $27 billion, up 43.5 per cent year-on-year, resulting a trade deficit of $1.5 billion in the month. The figure in the first four months of this year was $102.61 billion, up 30.8 per cent year-on-year, with a trade surplus of $1.29 billion.

Hai said that amid the developments of COVID-19, businesses should be aware of changes in the world market to optimise opportunities and maintain the export growth trend.

The official advised exporters to further exploit markets in Africa and Oceania besides those in America and Europe.

It is forecast that import-export activities will continue to be expanded in the future when free trade agreements are being implemented in a comprehensive and effective manner, which will further facilitate Viet Nam’s exports to other markets.

At the same time, prices of strong export products of Viet Nam are forecast to rise, which will contribute to increasing export value.

However, according to MoIT's Deputy Minister Do Thang Hai, import-export activities are still facing difficulties from difficult transportation, disrupted supply chains, and unstable market demand, as well as changes in food safety regulations in many markets.

He reminded businesses to continue improving their competitiveness and adaptation capacity to overcome difficulties, while actively reforming to tap new opportunities.

The deputy minister affirmed that in the future, the MoIT will continue to increase activities to support businesses in market expansion, administrative procedures, market information, while expanding trade promotions online to boost exports. — VNS

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