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Strong recovery in import and export

Update: 02-04-2021 | 12:55:53

The recovery of the province’s import-export sector has opened up positive signals for the local growth in the second quarter of the year. Province-based enterprises have proactively developed contingency plans to minimize risks, damages, take advantage of opportunities, ensuring to maintain production and business in the new context.

Potential figures

Although Covid-19 pandemic was complicated, the province's import and export activities in the first three months of 2021 still recorded higher growth than the same period last year. In the first quarter of 2021, the whole province’s export turnover was estimated at more than US$ 7.7 billion, up 30.4% over the same period last year or 25.2% of the year’s. Along with that, import value was estimated at over US$ 5.6billion, up 20% against the same period last year or 23.3% of the year’s plan.

Checking goods at a garment company in Di An city

The province’s main export industries have had positive directions with many expectations. For the woodwork industry, it must be affirmed that enterprises have never had as many export orders as in 2021. Many businesses have refused to receive another orders until the end of the year. According to statistics, the industry’s import turnover in the first quarter of 2021 was estimated at US$1,567million, up 51.5% over the same period last year, or  20.2% of the province’s total export value. In March 2021, the industry’s export turnover was estimated at US$551million, up 38.8% compared to the previous month.

The "resuscitation" of Vietnam's textile and garment industry in 2021 is forecasted by many experts and organizations. After a period of trying to overcome difficulties, the industry’s export turnover in the first quarter of 2021 was estimated at US$660 million, up 5.1% compared to the same period, or 8.5% of the total export turnover. In March 2021, the industry’s export turnover was estimated at US$ 230.9 million, up 37.9% compared to the previous month and it is forecasted that the figure will reach high growth in the second quarter of the year. The above forecast is assessed to be valid  because the forecasted number is relatively bright. The textile and garment import turnover of the US - the major export market of Vietnam's garment and textile is predicted to have an increase of 20% over the same period last year. The forecasts about the demand for textiles and garments for EU, Japan and South Korea markets also record a positive growth in 2021.

In the first quarter of 2021, footwear exports were estimated at US$483 million, up 7% over the same period, or 6.2% of the total export turnover. In March 2021, the industry’s export turnover was estimated at US$ 163.3 million, up 38.1% over the previous month. This was  a pretty good growth figure because production activities had to be halted, due to a long break for Tet. Vietnam was still recognized as a good market, trusted by brands

According to Nguyen Thanh Toan, Director of provincial Department of Industry and Trade, from early 2021, the Department has built a plan to review and grasp the production and business situation of 8 industries ‘associations and businesses in the province. In general, although Covid-19 pandemic was still complicated in the first three months of 2021, the province’s production and export activities still achieved positive growth over the same period last year. Province-based enterprises have proactively come up with contingency plans to minimize risks and damages, take advantage of opportunities to maintain production and business in the new context. The supply of raw materials for production also remains stable until the end of the second quarter of 2021.

Anticipated difficulties

The Government, the Ministry of Industry and Trade, the People's Committee of the province, and sectors have also promptly taken steps to support the implementation of activities on promoting trade, searching markets...Particularly, provincial People's Committee has instructed industries to support enterprises in exploiting, taking advantage of opportunities from free trade agreements to find solutions to develop markets, remove barriers in order to penetrate into new markets.

The timely support of sectors and authorities at all levels is a good foundation for enterprises to gradually overcome difficulties and increase exports. However, enterprises have also made efforts in the process of stabilizing production, looking for orders and especially bravely restructuring production in line with changes of the market. Vietnam has also negotiated with EU countries on a provision allowing domestic enterprises to supplement the origin of textile materials imported from Korea  and countries that have signed free trade agreements with the EU into textile products manufactured in Vietnam to enjoy preferential tariffs when exporting to EU countries. Enterprises also expect Vietnamese enterprises’ proportion of import value of fabric from India will increase from 1% to 8% in 2021 while helping reduce their  dependence on materials imported from China.

Phan Thi Thanh Xuan, Vice-Chairwoman of the Vietnam Leather, Footwear and Handbag Association said that if we only look at the growth figure, it can be seen that there is nothing to worry about the export of Vietnamese leather and footwear. However, this figure is just superficial, not a true reflection of the state of "health" of businesses, especially small and medium-sized enterprises (SMSEs). For businesses with capacity in processing sports shoes for big brands like Nike, Adidas, their quantity of orders is stable. Whilst, SMSEs without good production technology ... are extremely difficult in seeking orders.

According to our research, since early this year, the prices of raw material for key export industries have increased dramatically. There are items like wood with the growth of 15% in material price. In addition, cargo transport costs have increased because of congestion while the output prices of products have remained unchangeable. Therefore, enterprises have had to minimize their profits. All of these things have made enterprises to need more time in order to recover and take calculative steps for development. Some enterprises are still facing difficulties for change, including the shortage of containers for exporting goods, the increase of freight shipping charges and other surcharges…All have affected the progress of delivering goods and increased costs for enterprises.

Nguyen Hoang Thao, Vice-Secretary of provincial Party Committee, Chairman of provincial People's Committee has directed functional sectors to continue closely monitoring the development of Covid-19 pandemic for timely response;  given priority to the implementation of export promotion activities, focus on closely monitoring the situation of each market to recheck and identify types of goods that countries are in need of import to tap and promote exports.

Reported by Tieu My-Translated by K.T

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