11:46 | 05/07/2015 Trade
(VEN) - Phan Van Chinh, Director of the Agency for Foreign Trade under the Ministry of Industry and Trade, said that despite numerous difficulties in the first five months, Vietnam’s export value in the first half of this year was expected to reach about 47 percent of the annual plan (the average index of previous years was 44 percent). This should make the 10 percent export growth target set for 2015 feasible.
According to the Ministry of Industry and Trade (MoIT), in the first five months, the export value reached an estimated US$63.2 billion, a rise of 7.3 percent compared with the same period last year, but this growth was much lower compared with the first five months of 2014. MoIT attributed this lower growth to strong decreases in the export value of agricultural products, seafood, fuels and minerals. Specifically, the export value of agricultural products and seafood reached an estimated US$8.14 billion, down 9.5 percent; fuels and minerals US$2 billion, down 53 percent.
Phan Van Chinh attributed the lower growth also to oil price falls. Moreover, the supply of goods has increased thanks to economic recovery, leading to the competition among exporting countries. “However, the export growth Vietnam achieved in the first five months was a positive result compared with other countries in Southeast and Northeast Asia (except Japan achieving an export growth rate of 8.5 percent, most other countries saw declines in their export value).
According to MoIT, in March and April, Vietnam exported an average US$600 million worth of goods per day. In June, the export value is expected to reach US$14.7-14.8 billion. Phan Van Chinh affirmed, “The results of previous years showed that in the first six months Vietnam fulfilled about 44 percent of its annual export plans and the export value strongly increased in the last two quarters. In the first six months of this year, however, the export value is expected to reach about 47 percent of the annual plan. Therefore, the 10 percent export growth target set for 2015 is absolutely feasible.”
In early June, MoIT organized a meeting with the Vietnam Food Association (VFA) to seek new export markets for Vietnamese rice. The Philippines is inviting bids for supply of 250,000 tonnes of rice. MoIT is coordinating with VFA and businesses in an effort to win the bid. Meanwhile, a plan is being made to build an entrepot in Lang Son where agricultural products will be sorted and packaged for export.
Regarding measures to boost exports in the time to come, Deputy Minister of Industry and Trade Tran Tuan Anh said state management authorities should tighten coordination in dealing with difficulties facing export businesses. He emphasized, “The export results of 2015 will possibly be satisfactory, but the government has requested businesses, especially state-owned businesses, to give clear reasons for lower export growth in the first half of this year in order to seek suitable export promotion solutions. Many key exports such as agricultural products have revealed their low competitiveness. So promoting agricultural restructuring is necessary to achieve sustainable export growth in the time to come.”