Foreign trade in goods flourishes

Vietnam’s agricultural exports have boomed with rice outperforming other items this year - photo: VNA

Bright spots

The Ministry of Industry and Trade’s latest data show that Vietnam’s foreign trade value reached US$61.62 billion in October (up 4.1 and 5.6 percent from September and the same period last year, respectively), taking the total to US$557.95 billion in the first 10 months of 2023, 9.6 percent less than the same period of 2022.

Vietnam earned the export revenue of US$32.3 billion in October, 5.3 and 5.9 percent more than September and the same period last year, respectively, with the domestic economic sector experiencing a 15.1-percent growth rate and the foreign invested sector seeing an increase of three percent (including crude oil).

This took the country’s total export value to US$291.28 billion in the first 10 months of 2023, 7.1 percent less than the same period last year. This decrease is considerably lower than the 12-percent decrease in the first half of this year.

In the first 10 months, 33 exports yielded more than US$1 billion each, including seven exports bringing in over US$10 billion each.

The country’s import value was US$29.31 billion in October (up 2.9 percent from the previous month) and US$266.67 billion in the first 10 months of 2023, 12.3 percent less than the same period last year.

Increasing business support

The Ministry of Industry and Trade said the global economic growth remains low, consumer demand is still weak, protection barriers are increasing and many countries continue tightening their currency policies, while major trade partners of Vietnam, including the US and the EU, among others, have reduced spending on common and luxury products, all causing the number of export orders to decrease. The situation is expected to be hard for domestic industrial producers, especially textile-garment, leather and footwear, and electronics businesses, as 90 percent of their products are for export and only 10 percent for domestic sales.

The ministry will promote negotiation, signing and implementation of new cooperation agreements, including putting into force the free trade agreement (FTA) with Israel, and signing of FTAs and other trade agreements with such potential partners as the United Arab of Emirates (UAE) and the Southern Common Market (MERCOSUR) to diversify markets, products and supply chains.

The ministry will support businesses to take advantage of commitments in FTAs, especially the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU-Vietnam Free Trade Agreement (EVFTA) and the UK-Vietnam Free Trade Agreement (UKVFTA).

It will coordinate with the Ministry of Agriculture and Rural Development to negotiate with China to open more export markets for Vietnamese fruits and vegetables, including green-skinned grapefruit, fresh coconut, avocado, pineapple, star apple, lemon, and melon, among others.

The ministry will work to improve and speed up customs clearance for imports and exports, especially farm produce and seafood, through Vietnamese-Chinese border crossings, increase exports through official trade, provide early warning of trade remedy lawsuits and update businesses on the latest market needs and regulations.