Opportunities well made use of to maintain import-export momentum in hard time

The good use of opportunities from many markets as well as free trade agreements (FTAs) that Vietnam signed has made an important contribution to help Binh Duong's export activities maintain a good growth rate in the H1 of 2022.

Exporting goods at Panko Vina in Ben Cat town

To maintain the traditional markets

In the first 6 months of 2022, although production and business activities of enterprises were still affected by the COVID-19 epidemic, the recovery was quite good. The implementation of solutions to remove difficulties to promote production and business in the province continues to promote efficiency. Along with that, free trade agreements (FTAs) are gradually being implemented comprehensively to creating favorable conditions for the province's exports to penetrate into partner markets with preferential tariffs.

In general, in the H1 of the year, the province's export of goods recovered quite well. Export value of goods was estimated at USD 18,968 million, increasing by 8.8% over the same period. In which, the domestic economic sector was USD 3,529 million, increasing by 6.9%; the economic sector with foreign direct investment was USD 15,438 million, increasing by 9.2%. The US market was accounted for the highest proportion with export turnover of USD 6,478 million, and accounting for 34.2%, which as the increase of 12.8% over the same period. EU market gained USD 2,212 million, equivalent to 11.7% and increased by 10.2%. Korea market gained USD 1,815 million, accounting for 9.6% and increasing by 8%. Japan market gained USD 1,808 million, accounting for 9.5% and increasing by 6.6%. Taiwan market gained USD 1,429 million, accounting for 7.5% and increasing by 3.3%. Hong Kong market gained USD 1,397 million, accounting for 7.4% and increasing by 1.6%.

The result was thanks to the growth of many key products of the province. The item with outstanding export growth in the first 6 months of the year was textiles and garments. In June 2022, textile and garment export turnover was estimated at USD 307.4 million, increasing by 11.3% over the previous month. Accumulating for 6 months, export turnover was estimated at USD 1,532.4 million, increasing by 7.2% over the same period, and accounting for 7.9% of the total export turnover of the province. According to the provincial Textile and Apparel Association, this was very impressive growth in the context of many global challenges. Besides boosting production, textile and garment enterprises also actively research, forecast and take advantage of opportunities from FTAs ​​to promote exports.

Notably, the province's export of key goods to traditional markets has always maintained a stable growth momentum. At the same time, the industries also focused on supporting businesses to make good use of signed FTAs ​​to accelerate exports and boost domestic consumption. Including reviewing and recommending solutions to reduce taxes and fees or proposing solutions to support the affected subjects in case input prices of some raw materials and transportation costs increase.

Many good signals

Assoc. Prof. Dr. Pham Tat Thang, senior expert of the Institute for Strategy and Policy Research under Ministry of Industry and Trade, said that businesses can maintain large traditional markets and make good use of opportunities from FTAs for important contribution to double-digit export growth in the first 6 months of 2022. And, a solid foundation was created for businesses to move on to the difficult and challenging period ahead.

The good news is that in the first 6 months of the year, although the amount of imported goods decreased, the export turnover was still high with a relative balance import-export. Import turnover in the first 6 months of 2022 was estimated at USD 13,272 million, decreasing by 0.5% over the same period. Particularly, turnover in June 2022 was estimated at USD 2,757 million, increasing by 9.2% over the previous month, marking the return of production activities.

The signing ceremony has helped Vietnam have many advantages in import and export activities in the last 6 months of the year. However, in the coming time, Vietnam's export goods will face high prices of imported raw materials for production. Manufacturing units need to comply with and attach importance to standards and quality in order to export more to fastidious markets with high export value. Enterprises also need to have trade remedies because many countries are now introducing new barriers to export goods of other countries, including Vietnam.

Mr. Nguyen Nam Quan, Administrative Director of Takako Vietnam Co. Ltd in VSIP I, said that in the current conditions, it is very good to keep orders to maintain production. However, Tatako so far has also had many advantages when orders have been reached by the end of the year and setting a growth target of 10% that feasible. “We try to maintain production, in difficulties and challenges, the responsibility for ensuring orders and workers' lives is even more important. The good signal from export activities makes us confident to achieve the plan set out in 2022." Mr. Quan added excitedly.

Mr. Tran Thanh Hai, Deputy Director of the Import-Export Department of the Ministry of Industry and Trade, said that in the last 6 months of the year, the most prominent trend would be that the epidemic situation was domestically and internationally under control. Even China, which has implemented strict control with the zero COVID policy during the past time, has now begun to relax in some key ports. Such actions create favorable conditions for goods trade in the market to gradually return to stability.

Reported by Tieu My – Translated by Vi Bao