Hanoi (VNA) – Vietnam has set targets of 6% export growth for 2023 and a trade balance surplus for the 8th consecutive year. But the challenges ahead remain significant.
As Vietnam’s economy faces inflation and global economic recession, the drop in consumer demand will negatively affect the country’s import-export business. One of the targets set by the industry and commerce sector in 2023 is an increase in the export turnover of goods by around 6% year-on-year. It is difficult but doable.
The country’s foreign trade was estimated at 46.56 billion USD last January, down 17.3% compared to December 2022 and 25% year on year. The trade balance showed a surplus of 3.6 billion USD. At the same time, exports amounted to 25.08 billion USD, down 13.6% over one month and 21.3% year-on-year. There are seven exported products with a value of more than one billion USD.
Meanwhile, the value of imports fell by 28.9%, with three commodities having achieved a turnover of more than USD 1 billion. The United States remains Vietnam’s largest export market, with a turnover of 7.6 billion USD, while China was its largest import market with 8.1 billion USD. USD.
Note that in 2022, import-export turnover reached 732 billion USD, an increase of 10% compared to 2021. Exports amounted to 371.5 billion USD . A trade surplus of 11 billion USD was recorded. This is the seventh consecutive year that Vietnam has achieved a trade surplus.
Business promotion abroad
A trade promotion conference with Vietnamese overseas trade services was held in late January in Hanoi under the aegis of the Ministry of Industry and Trade. The event saw the participation of 500 representatives of Vietnamese companies, localities and trade offices in 50 countries. “Our foreign trade services have the task of carrying out market studies, advising the State in the development of trade policies, helping our companies to update their production strategy and to implement them. link with their international partners. The objective is to meet the requirements of the target markets“, explained the Minister of Industry and Trade, Nguyên Hông Diên.
Particular attention is paid to improving the efficiency of the National Brand Program, helping Vietnamese products penetrate deeper into global supply chains. Inflation, energy shortages and disruptions to commodity supply chains in many countries will lead to lower orders in the global market. This will have a negative impact on the Vietnamese economy, noted Nguyên Hông Diên.
Maintaining traditional export markets and developing new ones requires companies to understand market needs. Vietnam’s overseas trade offices play a vital role in gathering information and transforming it to businesses, associations and localities.
Minister Nguyên Hông Diên predicted that in 2023, exports will face many difficulties due to falling demand and increasingly fierce competition in the global market. Thus, domestic companies should take better advantage of the benefits of free trade agreements to diversify markets and supply chains. “We must increase sales to neighboring and potential markets in a formal way, strengthen the labeling of products for sustainable export. To achieve this, we must propose to these countries to set up new bilateral and multilateral cooperation mechanisms,” he stressed. According to him, it is important to promote the role of Vietnam’s trade offices abroad. The latter support local authorities and companies so that they can take advantage of free trade agreements and succeed in their international conquest.
Also according to Minister Nguyên Hông Diên, to achieve the objective of export growth of 6% in 2023, in addition to diversifying export markets, the Ministry of Industry and Trade will help domestic companies to re-establish their supply of raw materials, which will enable them to restore production in the service of exports.
Take advantage of free trade agreements
The 15 free trade agreements (FTA) in force will be a lever for national exports, in the context of Vietnam facing many challenges, because since the 4th quarter of 2022, the global consumer goods market has slowed down.
In many large markets such as the United States, the European Union (EU) and Japan, high inflation has reduced purchasing power. At present, each sector or enterprise has analyzed the difficulties and advantages of 2023, in order to establish a suitable production and trade plan. For the textile-clothing industry, the export value target of USD 47-48 billion will not be easy to achieve, due to overstocks at retailers and falling demand. Yet, despite adverse market developments, greener production and lower emissions remain major industry goals.
It is important to note that the high requirements of importers have prompted Vietnamese companies to invest in professional production according to the standards of major markets. When American, European or Japanese importers increase their demands in terms of environmentally friendly products, producing countries must respond. “Our ambition is to achieve an export turnover of textile products of 47 to 48 billion USD. The existing free trade agreements are a lever to promote foreign investment in Vietnam, helping companies to diversify markets and goods, such as products supplied to Muslim countries, through the transfer of part of the orders from Bangladesh. and from Myanmar to Vietnam,” remarked Vu Duc Giang, president of the Vietnamese Textile-Clothing Association (VITAS).
The Minister of Industry and Trade, Nguyên Hông Diên, estimated that the implementation of free trade agreements between Vietnam and its partners will continue to pay off in 2023. Aquatic products, rice, textile-clothing, shoes , fresh fruit and vegetables show their export potential to the EU. Not to mention other products such as telephones and electronic components, or even wood and its derivatives… to the Canadian and Mexican markets. -CVN/VNA