The total export turnover is expected to hit US$70.8 billion for the whole year, an increase of 24 percent over 2009 and 16.5 percent above the projected target.

The Ministry of Industry and Trade reported that most of the staples saw increases, especially rubber, cashew nuts, rice, chemicals, steel and steel-related products, means of transport, electrical cords and cables, and machinery. Only crude oil, cassava, and cassava products recorded lower revenues compared to the same period last year.

According to inter-ministerial statistics released by the Ministry, the country’s exports in November are predicted to hit US$6.45 billion, up 3.6 percent from October.

The November figure is only lower than that of August but higher than in the other months. Not considering gemstones and precious metals, this November has the highest export turnover since the beginning of 2010.

By November, Vietnam had fetched an estimated US$64.3 billion from exports, a 24.4 percent rise over the same period last year, which has made a positive contribution to the country’s GDP growth. On average, Vietnam has exported US$5.86 billion worth of goods every month since the beginning of the year.

Textiles and garments secure first position

This sector has always been one of Vietnam’s major export industries, growing at an annual rate of more than 17 percent.

Judging from its impressive growth in recent months it is predicted to earn over US$11 billion in export revenues in 2010, a 21.3 percent rise from 2009, and 5.1 percent above plan to enter the world’s top 10 exporters of textiles and garments.

November is the fifth consecutive month that its exports have earned more than US$ 1 billion to bring total revenues in the past 11 months to US$10.036 trillion.

The industry is overcoming obstacles related to labour, electricity sources, and the rising prices of inputs to boost production and fulfil export orders.

Le Van Dao, Vice President of the Vietnam Textile and Apparel Association, affirmed the sector’s competitiveness in the years to come and revealed its target of becoming a cutting-edge export industry by 2015, with export earnings reaching US$20 billion and a local content of up to 60 percent. He said the industry will focus on specializing and cooperating to turn Vietnam into the regional fashion centre.

Soaring prices

Large export orders have sent the prices of agricultural, forestry and aquatic products soaring.

The Vietnam Food Association reports that since early November, the price of rice for export has risen by 8 percent to US$490-500 per tonne.

With the world’s demands remaining stable, Vietnam’s rice exports are expected to hit about 6.6 million tonnes, worth US$3.08 billion, in 2010.

The most dramatic increase is in the price of rubber with export turnover in November alone reaching about US$2 billion from 672,000 tonnes, nearly 86.4 percent higher than the same month of last year.

In November, cashew nuts also made their way into the group of exports with revenues of US$1 billion or more.

Despite numerous hindrances from importers, the Vietnamese seafood industry has gradually strengthened its foothold in the world market and recently recorded its highest export growth. Its 2010 turnover is estimated to hit US$4.9 billion and surpass its yearly target by 6.5 percent. Tra fish and shrimp remain the industry’s strongest exports.

A global increase in coffee prices has encouraged Vietnamese farmers to take out loans and invest more in growing coffee trees intensively. Vietnam’s core zones for growing coffee trees have the potential to yield large amounts of raw materials. The country is expected to export US$1.74 billion worth of coffee this year.

Trade deficit curbed

Deputy Minister of Industry and Trade Nguyen Thanh Bien said Vietnam’s trade deficit in 2010 is predicted to be US$12 billion with a rate of 17 percent, which is within the target set by the government.

Bien said consistent measures have helped limited importation, which is estimated at about US$82.8 billion.

According to inter-ministerial statistics, the November trade deficit stood at US$1.25 billion, or 19.38 percent of the aggregate export revenues, the highest of the past nine months. However, the import growth rate in the past 11 month is lower than its corresponding figure for export (24.5 percent).

Nonetheless, there are still causes for concern in the past two months, including a rise in the import of restricted commodities such as gemstones, precious metals and related products (mainly gold).