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Many problems need to be solved to promote exports

Summary

Updated on : 27-06-2017

VCN- An increase in both quantity and price are favorable factors for export growth. In addition, the advantages of free trade agreements (FTAs) have enabled Vietnamese goods to penetrate the import markets better.

An advantage in price

By the end of May 2017, export turnover of Vietnam had been estimated at $US 79.3 billion, an increase of 17.4% over the same period. In particular, the export turnover of domestic enterprises was estimated at $US 22 billion, an increase of 13.6% over the same period, and the export turnover of FDI enterprises was estimated at $US 57.24 billion (including crude oil exports), an increase of 19%. According to Mr. Tran Thanh Hai, the Deputy Director of the Import-Export Department (under the Ministry of Industry and Trade), the turnover for the first 5 months of 2017 increased by more than twice compared to the first 5 months of 2016 ( the turnover of 2016 only increased by 6.3%). This was a high growth rate. Three groups of commodities including agricultural products, seafood; mineral fuel; processing industry showed a good growth.

In fact, the export of many commodities has grown in recent years, especially the key export items such as textiles, footwear, telephones and components, computers, electronic products and accessories, machinery, equipment, tools, spare parts. The growth of export is mainly due to two factors, including an increase in price and an increase in volume.

As a result, the turnover of agricultural products increased by $US 627 million; fuel and minerals increased by $US 377 million. In particular, the export price of some commodities increased sharply, especially rubber (an increase of 60.8%), coal (an increase of 54.4%), crude oil (an increase of 34.8%) and coffee (an increase of 31.9%). Mr. Le Quoc Phuong, the Deputy Director of the Center for Industry and Trade Information (under the Ministry of Industry and Trade) said that the growth of fuel and minerals is one of the reasons for export growth in the first 5 months of 2017 at a good level. Specifically, exports of all coal, crude oil, gasoline, ore and other minerals reached a positive growth rate. In terms of volume, the production of processing industry, fuel and minerals increased sharply, especially some commodities such as fertilizer (an increase of 55.9%), plastic materials (an increase of 38.9%); fiber and textile fiber (an increase of 16.1%); iron and steel of all kinds (an increase of 28.2%).

One of the noticeable things in the export picture is the utilization of the FTAs that Vietnam has signed. For example, for textiles and garments, many export markets have grown well, in which the Eurasian Economic Co-operation Group has grown by 115% in Russia. In the AEC market, there has been a growth in six markets, including Thailand with 17%, Indonesia with 11%, Singapore with 38%, Laos with 24.5%, Cambodia with 36% and Myanmar with 5%. One of the traditional customers of Vietnam which have maintained a high growth rate of 14% is Korea. Thus, it can be seen that the efforts of textile and garment enterprises to take initiative in approaching, exploiting and exploiting new bilateral and multilateral FTAs have resulted in the achievement coming from the Economic Coalition Asia-Europe and ASEAN economic community.

Mr. Hai added that Vietnam's new FTAs, such as the Vietnam-Chile FTA and Vietnam-Korea FTA all had a good growth rate as partners continued to implement reductions. In particular, in terms of FTA preferential rates, the Chilean market accounted for the highest share of C / O VC samples at 64%; and the second place was the Korean market with 56% of AK / VK sample.

How not to be influenced?

These favorable factors are also reasons for the management agencies to declare that exports can be improved in the coming months. However, if you go to find the answer to the question "will export reach the target of a 6-7% increase compared to 2016?", it will be too early to have a correct answer.

On average, the export turnover of Vietnam reached nearly $US 16 billion. In the first 6 months of 2017, total export turnover was estimated at $US 96 billion. Although, as usual, the last months of the year will be the time of export accelerating, so it is likely to export to the destination as desired. But there is a long-standing reality that we can not deny, that Vietnam's export is always passive because it depends on the world market; and only with small fluctuations, Vietnam can be strongly influenced.

The ban on Australian shrimp imports from January 2017 has caused serious damage to shrimp farmers and shrimp exporting enterprises of Vietnam. According to Mr. Tran Quoc Khanh, the Deputy Minister of Industry and Trade, this ban has caused damage to Vietnam's aquaculture sector, of which the amount of shrimp to export to Australia is about 55 million AUD. The Ministry of Industry and Trade is working intensively with Australia to lift this ban. Recently, the catastrophic fall of pork when China stopped importing pigs from Vietnam is the proof of dependence on the export market.

It can be seen that Vietnam's exports have increased rapidly over time, but exports are still based on available resources. Therefore, the value added is not high, depending on the world market. Therefore, sustainability is still a problem that many experts often mention.

For export to be no longer a thrill when world markets fluctuate, finding new markets, avoiding "putting eggs in a basket" is the first requirement. Besides, we need to focus on adjusting the commodity lines, because export activities not only aim to occupy the market but also to occupy the commodity Vietnam has advantages on the map of the world. According to experts' recommendations, if Vietnam still sells only $US 2 per kg, while exporting to the countries it collects $US 200 per kg, it is hard for Vietnamese goods to become sustainable.

By Phan Thu/ Hoang Anh