Exports experience hard time in Q1
Foreign trade experienced difficulties as exports of many key commodities tumbled in the first quarter of 2015, according to the Ministry of Industry and Trade (MOIT).
Export turnover reached US$35.67 billion, up 6.9% from the same period last year but below the quarterly target of 10% set by the sector. The figure fulfilled 21.6% of the state’s yearly target, the Ministry said.
Vietnam shipped US$4.25 billion worth of agricultural and seafood products abroad, an annual decrease of 15.8%, due to the fall of several key export revenue generators including seafood, coffee, rubber and rice (with decreases of over 30%), costing the country US$500 million during the period.
The contraction was triggered by the absence of major contracts from Vietnam’s key buyers early this year, such as China, the Philippines, Indonesia and Malaysia, explained MOIT Deputy Minister Tran Tuan Anh.
Seafood exports suffered as a consequence of high anti-dumping tax rates imposed by the US coupled with the strengthening of the US Dollar.
Exports of minerals and fuels dropped 37.2% from 2014 to US$1.35 billion. Turnovers of crude oil and petrol plunged by 48.9% and 36.7% respectively, following their weakening price, whilst coal exports fell a significant 78.6% in volume.
However, exports of industrial commodities were on the rise with phones & components, textiles & garments, footwear, machines and bags witnessing higher growth rates than national averages.
To solve the downturn, Tuan Anh urged the sector authorities to support domestic businesses in improving their competitiveness to fully tap the potential brought about by already inked and upcoming free trade agreements such as those with the European Union, the Republic of Korea and Chile alongside the impending Trans-Pacific Partnership (TPP) Agreement, and the formation of the ASEAN Economic Community by the end of this year.
The sector should increase its marketing efforts and work closely with overseas trade promotion agencies to provide domestic businesses with accurate market information, research ways to spur business development and quickly settle international trade disputes negatively affecting the interests of Vietnamese enterprises, he added.
Vietnam shipped US$4.25 billion worth of agricultural and seafood products abroad, an annual decrease of 15.8%, due to the fall of several key export revenue generators including seafood, coffee, rubber and rice (with decreases of over 30%), costing the country US$500 million during the period.
The contraction was triggered by the absence of major contracts from Vietnam’s key buyers early this year, such as China, the Philippines, Indonesia and Malaysia, explained MOIT Deputy Minister Tran Tuan Anh.
Seafood exports suffered as a consequence of high anti-dumping tax rates imposed by the US coupled with the strengthening of the US Dollar.
Exports of minerals and fuels dropped 37.2% from 2014 to US$1.35 billion. Turnovers of crude oil and petrol plunged by 48.9% and 36.7% respectively, following their weakening price, whilst coal exports fell a significant 78.6% in volume.
However, exports of industrial commodities were on the rise with phones & components, textiles & garments, footwear, machines and bags witnessing higher growth rates than national averages.
To solve the downturn, Tuan Anh urged the sector authorities to support domestic businesses in improving their competitiveness to fully tap the potential brought about by already inked and upcoming free trade agreements such as those with the European Union, the Republic of Korea and Chile alongside the impending Trans-Pacific Partnership (TPP) Agreement, and the formation of the ASEAN Economic Community by the end of this year.
The sector should increase its marketing efforts and work closely with overseas trade promotion agencies to provide domestic businesses with accurate market information, research ways to spur business development and quickly settle international trade disputes negatively affecting the interests of Vietnamese enterprises, he added.