10:17 | 25/07/2017 Trade
(VEN) - The Ministry of Industry and Trade (MoIT) forecast that Vietnam’s export value could reach US$195 billion in 2017, a rise of 10-11 percent compared with 2016. The forecast is higher compared with the 6-7 percent target set by the government, as well as predictions made earlier this year.
Volume and value
MoIT data indicates that Vietnam exported nearly US$79.98 billion worth of goods in the first five months of 2017, up 18.4 percent compared with the same period last year, and that the export value has grown steadily since the beginning of this year.
The growth is attributed, among other factors, to price hikes on world markets. Among key agricultural exports, rubber saw the highest export price growth, 60.8 percent, followed by coal, 54.4 percent, crude oil 34.8 percent, coffee 31.9 percent, and cashew nuts 24.7 percent. Price rises generated an increase of US$627 million in the export value of key agricultural products.
Export prices of fuels and minerals, such as coal and crude oil, also increased in the first five months following continuous falls for a long time, leading to an increase of US$377 million in their export value.
Exports in the first five months grew in not only value but also volume. The export volume of processing industry-related products, fuels and minerals increased strongly. For example, fertilizer exports were up 55.9 percent; plastic materials, 38.9 percent; fibers and yarns 16.1 percent; iron and steel 28.2 percent.
Computers, electronic products and components, machinery, equipment, instruments, spare parts, textiles and garments remained key Vietnamese exports.
US$195 billion expectation
Based on market changes, the MoIT forecast that this year’s export value could reach about US$195 billion, a rise of 10-11 percent compared with 2016.
This forecast is expected to be feasible, given that export value of agricultural products and seafood usually grows from the middle of the year and reaches the highest level by year end. The export season of industrial products with high export value, such as textiles, garments, footwear and wood products, also often begins in the middle of the second quarter. The import of large volumes of production materials in the early months of this year also indicates export growth towards the year’s end.
To boost exports, the MoIT is taking action to accelerate the construction of facilities that manufacture products for export. At the same time, it is coordinating with the Ministry of Agriculture and Rural Development to promote the restructuring of the agricultural sector in order to create suitable products for export.
All agree that conditions required for businesses to join the market should be simplified or reduced. Policy and mechanism improvements are also needed to enhance the effectiveness of technical inspections of imported and exported goods.
A new decree to amend Decree 109/2010/ND-CP regarding rice exports, for example, has been welcomed by the companies affected. Tran Thanh Hai, Deputy Director of the MoIT’s Agency of Foreign Trade, says the ministry has received positive feedback from rice businesses and localities in the Mekong Delta about the draft, which allows small eligible companies to export high-quality rice products – not just large ones.