Nghe An exports in the first months of the year faced difficulties, why?

The Nghe An Department of Industry and Trade said that due to high inflation, the economic crisis in key export markets for industrial products of Nghe An province , reduced procurement spending, the Russian war - Ukraine lasted a long time... causing the price of input fuel, energy, and transportation costs to increase at a high level, causing production costs to increase. 2023.

Import and export faced many difficulties

Accordingly, the total export and import turnover of goods in May 2023 was estimated at 190 million USD, up 16.3% over the same period last year. In the opposite direction, the import turnover of goods in May was estimated at 145 million USD, down 4.9% over the same period.

Notably, it can be seen that the declines come from specific key product groups: Steel sheet of all kinds down 67.3%, Textile and garment down 15.8%, Electronic equipment and components down 39.8% ...

The international container ship East Sea Mariner docked at Cua Lo port (Nghe An).

Generally in the first 5 months of 2023, the total export turnover of goods reached 896.8 million USD, down 2.58% compared to the same period in 2022. In the opposite direction, the import turnover of goods in the first 5 months of the year was about 564.3 million USD, down 5.44% compared to the same period in 2022 (mainly reducing input materials for the production of textile and garment industries, electronic components...).

According to Mr. Hoang Minh Tuan - Head of Import and Export Management Department of Nghe An Department of Industry and Trade, difficulties in production and the decrease in export orders in the first quarter of 2023 continue to affect the export of goods. in April and May 2023.

The Nghe An Department of Industry and Trade acknowledged that the province's key export products, such as textiles, footwear, and electronic components, continued to decline sharply because the export market was still facing difficulties and orders were scarce. (Fiber products of 70% of output are exported to the Korean market, but due to the decline of the garment industry, customers reduce imports; Garment products of most enterprises decreased from 20% over the same period; Phone components at all factories decreased due to changing technology, had to return orders and there was one Em-Tech factory that stopped working).

Production of materials for the construction industry such as cement, building stone, bricks, and plastic pipes in Tien Phong decreased compared to April 2022 due to the decrease in private construction investment, slow disbursement of public investment, The real estate market has not shown any signs of recovery...MDF and slatted plywood products fell sharply as the US and European countries continued to investigate the evasion of anti-dumping and anti-subsidy taxes. for plywood using hardwood materials imported from Vietnam. Production of biomass pellets in some factories decreased, large inventories due to fierce export price competition…

Besides, a number of traditional markets of export enterprises in Nghe An had a decrease in turnover such as: China down by 17.5%; US down 8%, Taiwan down 42.5%, Switzerland down 60%....

Indicating the cause of the decline in import-export turnover of some products, Mr. Hoang Minh Tuan said that some items fell sharply, such as steel sheets of all kinds, which decreased by 44.2%. " The export turnover of steel sheet products in 2022 increased sharply due to the complicated epidemic situation in the southern provinces, so this item was moved to Nghe An for production, leading to an increase in output. This year, the quantity of goods Export production returned to stable as in previous years, so the turnover of this item decreased compared to 2022 "- Mr. Tuan stated.

Key export groups of Nghe An such as textiles, footwear, electronic components production... continued to decline sharply due to difficult export markets, scarce orders...

As for textiles, which decreased by 12.8%, textile fibers decreased by 80%, the reason for the decrease was given as a decrease in consumption demand, possibly due to high inflation. When prices rise too high, customers focus on essential goods more than other consumer goods, so export orders also decrease. Typical of reduced orders, especially for the US market, is a market with strong fluctuations and reduced consumer demand.

Some traditional markets of Nghe An enterprises also face difficulties, as pointed out by the Nghe An Industry and Trade industry, such as: China has just opened, the supply chain has not recovered, the policy of tightening control on agricultural products, food Products; US market due to reduced consumer demand, economic recession, EU market due to tight monetary policy, rising inflation, increasingly strict standards and regulations...

How to promote import and export in the near future ?

Commenting that purchasing power is still recovering slowly, production will still be difficult due to a shortage of orders, Pham Van Hoa - Director of Nghe An Department of Industry and Trade said, the Industry and Trade industry has come up with many solutions to boost import and export. exports in the near future.

Specifically, the Department continues to guide businesses to effectively use incentives from the EU, Japan, China, Korea, ASEAN free trade agreements... Along with that, focus on renewing and strengthening trade promotion activities aimed at new and potential markets such as the United States, Russia, Eastern Europe, Northern Europe, India, Africa, the Middle East and Latin America...

In addition, strengthening market information work, continuing to closely coordinate with Vietnamese Trade Offices abroad, In addition, enhancing the grasp of information affecting Vietnam's exports as the main change. policies of the importing country, technical barriers, risks in payment, propaganda activities that lack goodwill towards Vietnamese exports... so that Nghe An enterprises can have timely response solutions.

Supporting trade promotion activities, connecting supply and demand, e-commerce applications, especially promoting support for businesses to participate in cross-border e-commerce platforms such as Amazon, Alibaba, etc. to connect and introduce enterprises participating in trade promotion programs abroad under the National Trade Promotion Program, the Program connecting Vietnamese goods with the overseas Vietnamese community.

Along with that, supporting businesses to access foreign distribution networks; Coordinating with the Committee of Overseas Vietnamese - Ministry of Foreign Affairs, Trade Promotion Department - Ministry of Industry and Trade to organize the introduction of products of the province into the distribution network abroad; Improve the competitiveness of logistics services; Studying solutions to support and encourage small-scale export enterprises to switch to official export; Continue to disseminate about rules of origin and how to meet rules of origin to help businesses seize the opportunities opened up from FTAs, further improve the rate of taking advantage of incentives in FTAs...

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