MoIT deals with declining export turnover
07:41 | 08/08/2019

VGP – Minister of Industry and Trade Tran Tuan Anh tasked the Import-Export Department and relevant agencies to conduct a series of measures to cope with declining export turnover in the first seven months which failed to meet preset goals. 

Illustration photo

Director of the Import-Export Department Phan Van Chinh reported on trade performance in the first half on August 7. 

Accordingly, Viet Nam’s export activities were on the decrease as the world economy slowed down with increasing risks and challenges due to the trade disputes among big countries.

The Department reported that in the January-July period, export turnover was estimated at US$ 145.1 billion, about US$ 1 billion lower than the preset export scenario. 

Export turnover was set to touch US$ 261-262 billion in 2019, up 7-7.5% against 2018. Hence, until the year end, average monthly export turnover must be about US$ 23.2-23.4 billion. 

This is a difficult task as Viet Nam’s export turnover reached US$ 23 billion last August. 

However, Minister Anh affirmed that the ministry would not adjust the preset goal of 6-8% export turnover.  

Extremely low overseas shipment to China 

Regarding the Chinese market, Mr. Chinh reported that export turnover dipped to a record low at US$ 16.68 billion, representing a year-on-year growth of 0.3%, equivalent to US$ 42.7 million.

Export turnovers of telephones and rice decreased by US$ 549 million and US$ 329.3 million, respectively.

The Department attributed the declines to increasing rice inventory in China which grew from 76 million tons in 2014-2015 season to 113 million tons in the 2018-2019 season and China’s lower import demand. 

In addition, overseas shipment to the EU saw a year-on-year decline of 0.6% in the first half, touching only US$ 20.5 billion. 

Decreasing export of agro-fishery products was blamed for US$ 1.22 billion of lower export turnover. Six out of nine key agro-fishery exports experienced lower export turnovers including aquatic products, vegetables and fruits, cashewnuts, coffee, and cassava. 

Expanding key exports

Deputy Minister of Industry and Trade Tran Quoc Khanh was quoted as saying that amidst the complicated world economy, export turnover was still on the rise. In the rest of 2019, the world economy was forecast to get more complex in which trade disputes would transform to technological disputes. Hence, Mr. Khanh tasked the Department to keep a close watch on the market. 

He recommended the Department work with the Ministry of Industry and Trade accelerate negotiations to broaden markets especially the nine key export ones. 

Minister Anh stressed the necessity to diversify products and export markets and craft export scenarios for specific markets and exports./.

By Kim Loan 

 

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