Eight-month exports indicate clear recovery

09:26 | 25/09/2020 Economy

(VEN) - Exports have shown clear signs of recovery from the effects of the Covid-19 pandemic.

eight month exports indicate clear recovery

Leather and footwear enterprises have taken steps to effectively utilize the EVFTA

High export growth

According to the Ministry of Industry and Trade, Vietnam’s total import-export turnover reached an estimated US$336.32 billion in the first eight months of 2020, a drop of 0.3 percent compared to a year ago, including US$174.11 billion in exports and US$162.21 billion in imports.

The country’s export turnover increased by 6.5 percent in August compared to the previous month and 2.5 percent compared to a year ago, reaching US$26.5 billion. The increase was attributed to high growth of some items, such as computers, electronic products and components; machinery, equipment, tools and spare parts; wood and wood products. Exports of phones and components all recorded double-digit growth thanks to the launch of Samsung’s new flagship models.

The domestic sector remained a bright spot with its export value reaching US$60.8 billion in the first eight months of the year, a year-on-year increase of 15.3 percent and 27 products posting export revenue of over US$1 billion each.

Businesses have been utilizing opportunities provided by free trade agreements, especially the EU-Vietnam Free Trade Agreement (EVFTA). Tran Thanh Hai, deputy director of the Agency of Foreign Trade under the Ministry of Industry and Trade, said the ministry had quickly implemented solutions to help businesses receive certificates of origin (C/O) to enjoy the incentives offered by the EVFTA.

In the month since the EVFTA took effect (August 1-31), agencies granted 7,200 sets of C/Os worth US$277 million, enabling exports of Vietnamese products to 28 EU countries. The goods are mainly footwear, seafood, plastics and plastic products, coffee, garments and textiles, bags, suitcases, vegetables, rattan, bamboo, and knitting products, among others. Most import markets are countries with seaports and transshipment centers in the EU, such as Belgium, Germany, the Netherlands, France, and the UK.

Vietnam’s trade posted a US$3.5 billion surplus in August, lifting the total trade surplus to US$11.9 billion in the first eight months of 2020.

Strengthening export promotion

The Ministry of Industry and Trade is organizing numerous activities to promote online trading in order to connect local businesses with foreign partners for market expansion.

For example, the ministry held an online workshop in August to provide training and networking activities for Vietnamese enterprises and foreign distribution networks. Deputy Minister of Industry and Trade Do Thang Hai said the workshop was one of a series of activities to bolster the capacity of Vietnamese exporters in terms of production, market expansion, and finance. With Covid-19 plaguing the operations of companies and supply sources, stability is required in the supply system and distribution market, particularly regarding goods for daily life, like farm produce and food, Hai said.

The Ministry of Industry and Trade wishes to not only boost exports but also develop enterprises capable of meeting foreign market requirements. The project enables connection between local businesses and foreign distributors to help made-in-Vietnam products penetrate global value and supply chains.

In the final months of the year, the Ministry of Industry and Trade will continue to strengthen information dissemination about the trade deal’s commitments, including trade in goods and services, investment, and roadmap of tariff cuts on Vietnamese goods in order to improve local business awareness.

Phuong Lan