08:36 | 28/05/2019 Trade
(VEN) - The February foreign trade value was lower compared with January due to the Lunar New Year holiday. In the first two months, however, the index was higher compared with the same period last year.
|Sea exports remain on the rise|
Trade deficit comes back
Ministry of Industry and Trade (MoIT) data show that in the first two months of 2019, total import and export value reached an estimated US$73.44 billion, a rise of 6.7 percent compared with the same period last year. Specifically, the export value reached an estimated US$36.68 billion, up 5.9 percent; and the import value US$36.76 billion, up 7.5 percent.
In February, the export value of domestic businesses was estimated at US$10.72 billion, up 9.9 percent, higher than the export growth achieved by companies with foreign direct investment (FDI), 4.3 percent.
Meanwhile, the export value of agricultural, forest and aquatic products was down 11.8 percent. In this group, only tea, seafood and rubber saw increased export value.
The two-month export value of processing industry-related products reached US$30.57 billion, up 6.7 percent compared with the same period last year and accounting for 83.35 percent of total export value. Telephone exports brought Vietnam revenues of US$6.79 billion. The export value of eight products exceeded US$1 billion, most of them from the processing industry.
According to the MoIT, after recording a trade surplus of US$816 million in January, Vietnam faced a deficit of US$900 million in February. In the first two months, the deficit amounted to US$84 million.
Deputy Minister of Industry and Trade Do Thang Hai said the MoIT would further upgrade trade promotion activities to facilitate the sale of Vietnamese goods abroad.
Recently, the MoIT’s Vietnam Trade Promotion Agency announced a cooperation plan with Amazon Global Selling to support Vietnamese companies’ presence on Amazon’s global retail system, Amazon.com.
Efforts are also underway to access other foreign distribution channels. For example, Vietnam expects to export US$500 million worth of goods via the AEON retail chain by 2020 and US$1 billion by 2030. “Along with the support of state authorities, domestic companies need to improve their products to meet consumer tastes from various markets worldwide,” Deputy Minister Do Thang Hai said.
However, foreign-made products are exported to other countries under the guise of Vietnamese goods to enjoy tariff preferences. This adversely affects the global image of Vietnamese goods. The MoIT, the Ministry of Public Security, the Ministry of Defense and the Ministry of Finance are coordinating to tighten control over imports and exports to deal with this problem.
In February and March 2019, the MoIT provided businesses with information and guidance to help them identify
opportunities and challenges stemming from the Comprehensive and Progressive Agreement for Trans-Pacific
Partnership (CPTPP) and other free trade agreements.