Suggestions for you

Ministry of Industry and Trade: Export target in 2022 to increase by 8%

10/01/2022

At the Industry and Trade Review Conference, the leader of the Ministry of Industry and Trade said that the export target in 2022 will increase by 6-8% to about USD 363 billion. At the same time, the ministry also aims to maintain the trade balance at a trade surplus.

In 2021, despite the world economy being heavily affected by the COVID-19 pandemic, increased trade protection, Vietnam's commodity exports still increased sharply with an estimated turnover of nearly USD 336 billion, an increase of 19 % compared to 2020, exceeding 5% of the plan. At the same time, this is the highest level ever.

After a long period of maintaining a trade surplus, in the first months of 2021, the trade balance turned to a trade deficit due to production and export difficulties caused by the 4th wave of COVID-19 pandemic.

Imports tend to increase in both volume (due to increased demand for input materials for production to anticipate the recovery of commodity demand in markets) and rising prices of raw materials on the world market.

However, from October 2021 until the end of the year, exports recovered after a long period of interruptions in production activities due to the implementation of social distancing in many localities, especially in Ho Chi Minh City and southern provinces, the trade balance started to go into surplus from October.

For the whole year of 2021, the trade balance continues to record a trade surplus of about USD 4 billion. This is the 6th year that Vietnam continues to record a trade surplus, mainly with developed countries with strict quality requirements for imported goods such as the US (export surplus of about USD 80 billion); EU (export surplus of nearly USD 23.2 billion).

Although, exports increased sharply, but the degree of dependence on the FDI sector increased compared to recent years, the export turnover of FDI enterprises (including crude oil) is estimated at USD 247.5 billion, an increase of 21 %, accounting for 73.6% of total export turnover.

Meanwhile, the export turnover of domestic enterprises is estimated at  USD 88.7 billion, an increase of 13.4%, lower than the overall export growth of the whole country (19%) and only accounted for 26.4% export turnover (the same period in 2020 accounted for 28%).

The export volume of many agricultural products decreased (coffee, tea, pepper, rice) due to market difficulties. The pace of market diversification in some products (such as vegetables and fruits) is still slow, therefore not yet able to meet the standards and quality requirements of the markets, make good use of tariff preferences from signed FTAs.

Some agricultural products are too dependent on the form of exchange, therefor there is always a potential risk of causing congestion at the border gate for a long time, affecting cross-border trade activities.

The competitive advantage of Vietnam's exports is still mainly based on price, not really on value. Therefore, our export development is not really sustainable.

 

Kylie Nguyen

© 2019 Vietnam Bank for Agriculture and Rural Development No. 2 Lang Ha street, Ba Dinh district, Hanoi, Vietnam
Follow us