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All sectors are facing difficulties in export markets.

06/06/2023 13:38

According to the Ministry of Industry and Trade, during the first five months of 2023, export activities continue to be affected by production difficulties and a decline in export orders, coupled with a decrease in export prices.

Despite positive signs of recovery in May, with the export turnover reaching an estimated $29.05 billion, a 4.3% increase compared to the previous month, the overall export performance for the first five months of the year showed a decline. The total export turnover reached $136.17 billion, marking an 11.6% decrease compared to the same period last year. Domestic economic sectors accounted for $35.19 billion, a 13.2% decrease, representing 25.8% of the total export turnover, while the foreign-invested sector (including crude oil) reached $100.98 billion, an 11.1% decrease, representing 74.2%.

According to the Ministry of Industry and Trade, alongside the decrease in export orders, declining export prices also contributed to the decline in the country's export turnover during the first five months of this year.

In particular, the average export prices of many commodities decreased compared to the same period last year, such as a 7.9% decrease in tea, a 1.5% decrease in cashew nuts, a 34.3% decrease in black pepper, a 21.1% decrease in rubber, a 35.2% decrease in fertilizer, and a 24.4% decrease in plastic raw materials. Only a few commodities experienced an increase in export prices, including a 7.9% increase in rice, a 3.5% increase in coffee, and a 38.5% increase in coal.

It is noteworthy that all sectors faced difficulties in export markets due to the global decline in demand, especially for non-essential consumer goods. Consequently, the export turnover to major markets decreased during the first five months of 2023, with varying degrees of impact.

Industries such as textiles, garments, leather shoes, wood products, and aquatic products experienced the most significant decline in their export markets, mainly targeting the United States and the European Union (EU). On the other hand, sectors such as rubber, rice, fruits, cashew nuts, with export markets mainly in Asia, were less affected.

Furthermore, some export sectors, including aquatic products, wood and wooden products, iron and steel, and plastic products, faced pressures from trade defense investigations. The Ministry of Industry and Trade stated, "The increased costs of raw materials have also impacted the competitiveness of export goods and created difficulties in export markets."

Among the major export markets, the United States remained the largest market for Vietnam during the first five months of 2023, accounting for 26% of the country's total export turnover. According to the Ministry of Industry and Trade, the Federal Reserve's sustained interest rate hikes have achieved certain results in coping with high inflation. However, consumer spending has shown signs of slowing down, and it is forecasted to further weaken in the context of numerous bankruptcies, labor cuts, and recent economic recession warnings. The higher savings rate indicates that people are becoming more cautious in their consumption, which has affected Vietnam's exports to this market. Therefore, the import demand from the United States for Vietnamese goods continues to decline significantly compared to the same period, estimated at $37 billion, a 19.5% decrease (a 21% decrease in the first four months of the year compared to the same period).

China is Vietnam's second-largest export market. Although the border was reopened on January 8, 2023, the economy has not recovered rapidly and is facing difficulties due to the deceleration of global demand. Unemployment has directly affected the consumer demand for goods in China, along with increasingly higher requirements for product standards. These are the main reasons leading to difficulties in Vietnam's exports to this market.

Consequently, Vietnam's export turnover to China during the first five months of 2023 is estimated at $19.8 billion, a 9.3% decrease compared to the same period (a 7.9% decrease in the first four months of the year compared to the same period).

As for the EU market, the decline in exports to this market is showing signs of stabilizing. Therefore, exports to the EU market during the first five months are estimated at $18.4 billion, a 6.5% decrease compared to the same period (a 14.1% decrease in the first four months of the year).

Source: haiquanonline.com

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