09:32 | 04/10/2018 Trade
(VEN) - The export value of domestic companies continued growing, creating bright points in the foreign trade picture of the first eight months of 2018.
|Increases in rice exports will raise the export value of domestic companies|
Trade surplus maintained
The latest Ministry of Industry and Trade (MoIT) data show that Vietnam exported US$20.9 billion worth of goods in August 2018, a 2.9 percent increase compared with July and up 5.5 percent compared with August 2017. The export of telephones and components resumed growth following a slight decrease in June - a major contributing factor to the export growth in the last two months.
In the first eight months, total export value reached an estimated US$155.4 billion, 14.5 percent higher than the same period last year and equivalent to 65.7 percent of the annual plan.
While the export value of businesses with foreign direct investment (FDI) grew 13.4 percent, reaching US$110.3 billion and accounting for 71 percent of total export value, that of domestic companies grew 17.4 percent, reaching US$45.11 billion, despite a slowdown in the export growth of farm produce and seafood - major export products of domestic firms.
Satisfactory export results achieved by domestic companies helped stabilize the exchange rate and maintain macroeconomic stability in the context of growing trade tensions between the US and China.
Despite a trade deficit of US$100 million in August, Vietnam recorded a surplus of US$2.75 billion in the first eight months of 2018.
The MoIT’s Foreign Trade Agency forecast the export target set for 2018 could be exceeded given new orders received by domestic firms. As usual, exports are expected to grow strongly towards year’s end due to an increase in demand ahead of various holidays.
Meanwhile, the import value in the first eight months reached an estimated US$152.66 billion, up 11.6 percent compared with the same period last year. Major imports included machinery, equipment and materials for manufacturing and investment projects.
According to the Vietnam Food Association, from now to year’s end, Vietnam will export an average 400,000 tonnes of rice per month, raising the annual export volume to 6-6.5 million tonnes, focusing on three major markets: Indonesia, the Philippines and China. Indonesia is expected to import an additional one million tonnes, while the Philippines is set to import for the third time this year another 250,000 metric tonnes (MT) of rice to help stabilize prices and boost national inventory.
Geographic proximity and reasonable price are Vietnam’s advantages in exporting rice to these markets. Increases in rice exports will benefit domestic companies, which are the country’s biggest rice exporters.
Vietnam is accelerating the ratification process for the Comprehensive and Progressive Trans-Pacific Partnership
(CPTPP) agreement and the EU-Vietnam Free Trade Agreement (EVFTA) to take effect next year. The two major
trade deals will create a new impulse for Vietnamese exports in 2019 and ensuing years.