Foreign trade results to exceed forecasts

09:00 | 11/01/2019 Trade

(VEN) - At a recent meeting of the Ministry of Industry and Trade (MoIT), Phan Van Chinh, Director of the Foreign Trade Agency, said the 2018 import and export value is expected to exceed forecasts and the targets set by the National Assembly.

foreign trade results to exceed forecasts
Institutional improvements have been promoted to create a favorable legal corridor for import, export activities

Satisfactory results

Phan Van Chinh said that in the first 11 months of 2018, Vietnam exported more than US$223.6 billion worth of goods, 14 percent more than during the same period last year, and the export value is expected to reach US$245 billion by year’s end, up 15.4 percent compared with 2017. This export value is expected to yield a trade surplus of about US$5.9 billion. Earlier this year, the National Assembly and the government assigned the industry and trade sector to increase the annual export value by 7-8 percent and curb the trade deficit to below three percent of the export value.

According to Nguyen Thi Mai Linh, head of the Foreign Trade Agency’s Agro-Forestry-Fishery Import, Export Division, 26 kinds of goods surpassed the billion-dollar export value in the first 11 months.

“Notably, major contributions to the export value growth came from not only electronic products and computers, but also traditional export goods, such as wood products, textiles, garments, leather and footwear,” Linh said.

Nguyen Van Sua, Vice President of the Vietnam Steel Association, said that in the first 10 months of 2018, steel exports grew impressively in both volume and value despite trade defense lawsuits, reaching more than 5.2 million tonnes, higher than 2017’s result. The annual export volume is expected to reach six million tonnes, 30 percent higher compared with last year.

Further facilitation

Vietnam has ratified the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The trade deal is expected to help increase Vietnam’s export value by 3-5 percent annually after it takes effect. The free trade agreement between Vietnam and the EU (EVFTA) is also expected to help increase Vietnam’s export value by 5-6 percent annually after it is signed and takes effect. The increase will be even higher if Vietnam seriously abides by EVFTA rules of origin.

The MoIT is promoting institutional improvements to create a favorable legal corridor for import, export activities. Phan Van Chinh said that the MoIT will issue circulars providing guidance for businesses to make the most of CPTPP tariff preferences.

Government Decree 107/2018/ND-CP pertaining to rice exports has created favorable conditions for private companies to participate in government bids. Many domestic companies have won the competition with businesses from China, Thailand and Australia in government bids for export of rice to the Republic of Korea and the Philippines.

In the first 11 months of 2018, the US remained the largest export market for Vietnamese goods, and China ranked

third. Exports to the US reached US$43.7 billion, up 15 percent compared with the same period last year. Exports to

China reached US$38.1 billion, up 23.2 percent.

Phuong Lan