Province surmounts difficulties, recovering export market

Update: 08-09-2021 | 13:17:51

In August 2021, Covid-19 pandemic continued developing complicatedly, significantly affecting import and export activities. However, with vigorous growth in the previous months, the province’s import and export turnover remained high over the past 8 months. This is also the premise for the province to develop the local supply chain in the next period.

Bright sign

The province’s export turnover in August 2021 was estimated at nearly US$ 2.6 billion, down 12.3% against the previous month and up 1.2% over the same period last year. However, thanks to having strong growth in the previous months, the province’s total import-export turnover in the first 8 months of 2021 remained high compared to the same period last year. The province’s 8-month export-import turnover was estimated at nearly US$23 billion, up 37.3% against the same period. Some key export products with high growth included wood (up 44.2%), machinery and equipment (up 54.3%), garment-textile (up 22.1%), footwear (up 22.3%).

Production at Phu Dinh Woodwork Company in Dau Tieng district

According to the assessment of the industry and trade sector, the pandemic has affected most industries, fields and localities. The bottlenecks in production and circulation of goods have been drastically removed by provincial People's Committees and sectors. According to enterprises, although there are still many difficulties, they get bright signs in major markets when the demand for goods in the world market is still in the recovery trend. The growth in production and import-export in the coming time will greatly depend on the results of Covid-19 control as well as the progress of Covid-19 vaccination on a large scale.

Whilst, the province’s import value in August 2021 was estimated at US$ 2.33 billion, down 16.3% over the previous month and up 28.4% over the same period last year. The figure in the first 8 months of the year was estimated at US$ 18.3 billion, up 43.2% against the same period. Some import items with strong growth included machinery and equipment (up 43.7%), iron and steel (up 39.1%), paper (up 40.6%). The increase is evaluated as a favorable condition for the province to reorganize production when the pandemic is basically controlled.

At the same time, free trade agreements (FTAs) are gradually being implemented in a more comprehensive and effective manner, which is expected to further promote export industries, creating favorable conditions for Vietnamese goods to penetrate into partner markets with preferential tariffs, thereby promoting export growth in the coming time. The import of production materials usually increases at the beginning of the year and gradually decreases at the end of the year, while export increases in the last months of the year. The demand for Vietnam's export commodities, especially electronic, furniture, textile-garment, footwear and seafood products … will continue surging to serve consumption season in the last months of 2021. Therefore, the trade balance is forecasted to gradually improve in the coming time.

Ready to come back

From now until year-end, in order to prevent decline in export, due to Covid-19 pandemic, the Ministry of Industry and Trade (MoIT) has been focusing on solutions to strengthen and expand export markets, taking full advantage of valid FTAs, guiding enterprises to pay attention to small markets. Along with strengthening management over the import and export of some strategic products, the MoIT has also proposed the Chinese Embassy to facilitate customs clearance and export of goods through the Northern border gate. Besides, the MoIT has further innovated the organization of trade promotion programs, connecting supply and demand both at home and abroad, which is implemented on online environment and based on new platforms.

Nguyen Truong Thi, Deputy Director of provincial Department of Industry and Trade said that the department is currently grasping the situation of enterprises in the backlog of goods, searching for markets to advise and solve the output for products while setting up a plan to organize a program on trade promotion after the pandemic is under control.

Furniture is as a key export industry of the province. Recently, Binh Duong Furniture Association (BIFA) has conducted a report entitled: "The impact of Covid-19 pandemic on woodwork industry: The industry’s real situation in the first 8 months and scenario for the last months of 2021”. Based on reported figures and market analysis, a research group has come up with two scenarios for woodwork export growth in the last months of 2021.

The first scenario: Export turnover in the third quarter of the year continues decreasing. Export turnover in the fourth quarter begins recovering, the figure is only likely to reach about 70% of the average value of the third and fourth quarters. If these assumptions are correct, the sector’s total export turnover in 2021 will reach about US$13.55 billion. The second scenario: Export turnover in the last months of 2021 will continue declining as it is now, due to the pandemic not being controlled effectively. The decline will last until the end of the fourth quarter, which is only equivalent to 70% of the third quarter’s value. If this assumption happens, the export turnover of the whole industry in 2021 will reach about US12.69 billion.

According to Nguyen Phuc, Vice-President of BIFA, the important thing for enterprises at present is to strictly implement risk control measures to maintain production and business activities, retain customers, and create jobs for employees, thereby avoiding a complete breakdown of orders, causing risks on the output market in the future. In addition, enterprises need to be ready to resume production and business activities with high intensity and efficiency when the pandemic is under control.

Reported by Tieu My-Translated by Kim Tin

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Province surmounts difficulties, recovering export market

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