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Exports flourished in 6 months, firms improved revenue

Summary

According to the General Statistics Office, in the first six months of 2021, total export and import turnover of goods hit US$316.73 billion, up 32.2% over the same period last year. This figure shows the activities of import and export firms have flourished.

Updated on : 09-09-2021

25 export items with export turnover of billion dollars

 

Generally in the first six months of 2021, export turnover of goods was estimated at US$ 157.63 billion, up 28.4% from the same period last year, of which the domestic economic sector reached US$ 40.89 billion, an increase of 6.8%, accounting for 25.9% of total export turnover; FDI sector (including crude oil) reached US$ 116.74 billion, up 33%, accounting for 74.1%. In the first six months of 2021, there are 25 items with export turnover of over US$ 1 billion, accounting for 88.9% of total export turnover, of which, five items were exported more than US$ 10 billion, accounting for 58%.

The "hot" growth of exports in some products may lead to a risk of investigation and imposition of anti-dumping, anti-subsidy and anti-evasion duties. In particular, the import-export balance still leaning towards FDI firms also needs to be changed. Dr Le Quoc Phuong, former Deputy Director of the Information Center for Industry and Trade (Ministry of Industry and Trade), said Vietnam's import-export firms should improve their competitiveness, otherwise they would be defeated by FDI firms on "home field".

Regarding the structure of export products in the first six months, the group of heavy industrial goods and minerals was estimated at US$ 84 billion, up 29.3% from the same period last year; the group of light industry and handicraft products was estimated at US$ 58 billion, up 31.2%; agricultural and forestry products reached US$ 11.58 billion, up 15.8%, while seafood products hit US$ 4.05 billion, up 12.4%.

Import turnover of goods was estimated at US$ 159.1 billion in six months, up 36.1% over the same period last year, of which the domestic economic sector gained US$ 55.9 billion, up 30.2%; FDI sector reached US$ 103.2 billion, up 39.5%. In the first six months of 2021, there were 31 imported items with a value of over US$ 1 billion, accounting for 87.4% of total import turnover.

The most typical goods among export items are still textiles. According to the Ministry of Industry and Trade, in the first six months of 2021, the textile and garment industry has had many signs of prosperity. The export turnover of textiles and garments was estimated at US$ 12.2 billion, up 15% over the same period; export turnover of fibers and textile yarns of all kinds increased by 60.1%; export turnover of curtains and other technical fabrics increased by 66.2%. Thanks to that, many firms have developed and recovered revenue and profit. Vietnam Textile and Garment Group – Vinatex has had net revenue of about VND 3,377 billion in the past six months, gross profit increased by 6% from the same period last year; production - business efficiency of the parent company and most of Vinatex's member units increased in the same period.

For industrial products, steel is also a commodity that firms are promoting exports. According to the Vietnam Steel Association, in the first 5 months of 2021, Hoa Sen Group's steel sheet products achieved a sales volume of about 776,000 tons, of which exports accounted for nearly 512,000 tonnes. As a result, this firms has reported a large profit, in May, it hit a profit after tax of more than VND 600 billion, up five times compared to the same period last year.

Orders still increasing

According to experts, in the future, there will be many favourable conditions for export activities. According to the Vietnam Timber and Forest Products Association, orders for the coming months of 2021 will continue to increase, most wood firms have received orders until the end of the year. It is estimated that orders will increase by 30% compared to 2020. The reason is the demand for importing wood and wood products continues to increase in the US market. In addition, the advantage of the EU-Vietnam Free Trade Agreement (EVFTA) helps the Vietnamese wood industry increase price competitiveness compared to similar products with competitors in the EU. Wood exports to the Canadian market also took advantage of opportunities from the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), especially for wooden furniture.

In particular, with the positive figures of import and export turnover, related service industries also achieved high growth. The General Statistics Office said that in general, in the first six months of 2021, freight transport reached 903.5 million tonnes of transported goods, up 11.5% from the same period last year, down 7.8 percent in the same period in 2020.

However, the above figures showed a problem that the trade deficit has returned in Vietnam, when there was a trade deficit of US$ 1.47 billion in six months. The most typical is that imported sugar products are dominating the market, causing large domestic sugar inventories. According to the Vietnam Sugar Association, in May, sugar imported from ASEAN countries (evading anti-dumping and anti-subsidy taxes) and smuggled sugar from Cambodia and Laos completely dominated the market, making sugar produced from domestic sugarcane is almost impossible to sell. According to data from the General Department of Customs, the number of sugar imports into Vietnam from all sources increased by more than 1.5 times in the first four months of 2021, with an amount of nearly 540,000 tonnes compared to the same period last year with 341,000 tonnes.