Illustrative image. (Photo: VNA)Hanoi (VNA) – With 15.8 percentgrowth in the first five months of this year to 93.09 billion USD, achievingexport growth target of more than 10 percent for the whole year is feasible.
According to the Ministry of Industry andTrade (MoIT), export turnover hit 19.2 billion USD in May, up 4.5 percentmonth-on-month and 7.1 percent year-on-year. Of which, 5.63 billion USD wasfrom domestic firms, up 14 percent and the remaining from foreign-investedones, up 4.5 percent.
The highest growth was seen in fuel andminerals, soaring 35.9 percent, mostly driven by crude oil, up 110.5 percentfrom April.
In the first five months of this year, domesticexports increased by 17.8 percent to 26.43 billion USD while exports offoreign-invested firms (inclusive of crude oil) moved up 15 percent to 66.6billion USD.
According to experts, the growth was thanksto positive signals in major markets such as the US, European Union and China,the global economic recovery and increasing commodity prices.
Statistics showed that 10 of 16 commodities fetchedhigher export prices during the period, including rice (up 25.6 percent),cashew nuts (3.2 percent), cassava and its products (43.6 percent) and crudeoil (32.8 percent).
The US was Vietnam’s largest importer withturnover of 17.4 billion USD, up 9 percent annually. It was followed by the EU,China, ASEAN, Japan and the Republic of Korea (RoK).
Up to 19.7 billion USD was spent on imports,up 14.5 percent monthly and 6.3 percent annually.
As of late May, the country’s total importsrose 8.2 percent annually to 89.7 billion USD, 36.82 billion USD of which wasspent by domestic firms, up 10.4 percent, and the remaining by foreign-investedones, up 6.7 percent year-on-year.
Imports were mostly computers, electronicsand spare parts, fabrics, iron and steel, petrol, plastics, metal, garmentmaterials, footwear and chemicals. The largest import market was China with avalue of 24.2 billion USD, up 9 percent annually, followed by the RoK, ASEAN,Japan, the EU and the US.
Tran Thanh Hai, deputy head of the MoIT’sExport-Import Department, said Vietnam ran a trade surplus of 3.4 billion USDin the five months.
Head of the ministry’s Planning DepartmentDuong Duy Hung attributed the outcomes to an improving business climate, supportfor start-ups and increased foreign investment.
Vietnam’s major currency earners like apparel,footwear, machinery, wooden furniture, farm produce and aquatic productscontinued to benefit from free trade agreements. The garment, leather andfootwear sectors have received orders till the end of the third quarter andthroughout 2018.
However, Vietnamese exporters also meetdifficulties with China changing export-import policies, tightening qualitymanagement, boosting domestic manufacturing protection and limitingcross-border trade.
Protectionism has increased since early2018, particularly among industrial products like iron and steel.
Countries have adopted strict regulations onfood safety and environment protection standards such as control of the illegal,unreported and unregulated fishing and the Forest Law Enforcement, Governanceand Trade.
Hung said the MoIT will facilitate manufacturingrestructure, control supply and improve quality of farm produce and aquaticproducts for export while maintaining growth in traditional markets.
It will also improve the efficiency of tradepromotion and branding and cope with protection measures, he said, adding thatinstitutional and administrative reform will continue to create favourableconditions for enterprises.
In coordination with the Ministry ofAgriculture and Rural Development and units concerned, the MoIT will discuss disputesettlement with the US to protect Vietnam’s shrimp and tra fish exports.
The ministry will hold working sessions withrelevant countries to speed up their recognition of Vietnam’s quarantine, foodhygiene and safety system, thus facilitating farm produce exports.-VNA
VNA
