Export forecast for this year to reach roughly US$368 billion

The first half of the year witnessed import and export turnover continue to increase with a total turnover of more than US$371.3 billion. Of the figure, export turnover soared by 17.3% on-year to reach over US$186 billion.

Exports in the domestic economic sector rose by 19.5%, with this increase being higher than that of the foreign-invested sector, including the FDI sector which saw crude oil increased by 16.6%. This thereby highlights the efforts of local enterprises in restoring production and business activities and resuming supply chains in challenging conditions.

Furthermore, there were 29 items which had an export turnover of over US$1 billion, up four items over the same period from last year, accounting for 91.2% of total export turnover.

This comes after local firms have effectively capitalised on Free Trade Agreements (FTAs), especially new generation FTAs, to bolster exports.

Moving forward, the global economy is forecast to endure plenty of difficulties in the remaining months of the year, with many major economies globally forecasting a possible recession.

In line with this, high inflation may negatively affect the consumption of imported non-essential goods, thereby reducing the demand for imported goods from other countries, including Vietnam.

However, the positive import and export results recorded during the first six months of the year can be considered as the basis for the industry and trade sector to strive to achieve and exceed the set targets for exports for the entire year.

Moving into the second half of the year, the demand for Vietnamese export goods is anticipated to continue to increase according to the import-export cycle and the efficiency of FTAs. This is especially true following the implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU-Vietnam Free Trade Agreement (EVFTA), the Vietnam - UK Free Trade Agreement (UKVFTA), the Regional Comprehensive Economic Partnership (RCEP).

With regard to the trade development target set for 2023, the industrial and trade sector has set an export turnover target increasing by 8% compared to this year, with the trade balance maintaining a trade surplus.

In terms of potential solutions, the Ministry of Industry and Trade will continue to closely monitor the pandemic situation as it evolves, as well as changes in trade policies of other nations alongside major partners. This is in addition to checking the exchange of goods between countries in order to advise the Government on management solutions which can promptly respond to adverse factors.

The Ministry therefore emphasised the necessity of continuing to innovate, organising trade promotion schemes, along with connecting supply and demand both at home and abroad on the online environment and on new platforms.

These efforts will serve to intensify national trade promotion, support enterprises in exporting agricultural products, and continue to step up the simplification of administrative procedures.

Moreover, the focus will be firmly on implementing administrative procedures in the field of import and export under the National Single Window and the ASEAN Single Window in order to create favourable conditions for associations and businesses to participate in import and export activities.

It is therefore essential to support the growth of domestic firms in order to reduce dependence on the FDI sector in terms of production and export.