Exports recover but still face difficulties

According to the Ministry of Industry and Trade, the import-export turnover in May recovered positively, increasing quite compared to the previous month (up 5.3%, estimated at 55.86 billion USD) but decreased by 12.3% compared to the same period last year. . In the first 5 months of 2023, the total import and export turnover of goods was estimated at 262.54 billion USD, down 14.7% over the same period last year.

Specifically, commodity export activity in May recovered positively with export turnover estimated at 29.05 billion USD, up 4.3% over the previous month.

Accumulated in the first 5 months of 2023, export turnover is estimated at 136.17 billion USD, down 11.6% over the same period last year.

According to the Ministry of Industry and Trade , in terms of commodity export markets in the first five months of 2023, in general, all industries face difficulties in export markets due to the decrease in global demand, especially for consumer goods. not essential, so the export turnover in the first 5 months of 2023 of our country to most of the main markets decreased, however, the level of impact on the export of each commodity sector is different.

Textile and garment exports faced many market difficulties in the first months of the year

Industries such as textiles and garments, leather and footwear, wood, and seafood with the main export markets being the US, EU, etc. had the biggest decline. Sectors such as rubber, rice, vegetables, cashew nuts... with the main export market being Asia are less affected. At the same time, a number of export industries such as seafood, wood and wood products, iron and steel, and plastic products are facing pressure on trade remedy investigations. The increased cost of input materials has affected the competitiveness of export goods... also created difficulties in export markets.

What are the biggest export markets?

Regarding specific markets, the US is still Vietnam's largest market in the first 5 months of 2023 when accounting for 26% of the country's total export turnover. The fact that the Fed maintains interest rate increases for a long time has achieved certain results in dealing with high inflation.

However, consumer spending shows signs of slowing down and is expected to continue to weaken in the context of many business bankruptcies, job cuts and warnings about the recent economic recession; higher savings rate, a sign that people are becoming more cautious in consumption... has affected Vietnam's exports to this market. Therefore, the import demand of this market for Vietnam's goods continued to decline sharply over the same period, estimated at 37 billion USD, down 19.5% (in the first 4 months, it decreased by 21% compared to the same period last year). period).

For example, seafood exports to the United States have fallen sharply in recent years. In April 2023, seafood exports to the US fell by 53%. According to the Vietnam Association of Seafood Exporters and Producers (VASEP), the impact of inflation on the US market is increasing. American families are too "tired" with the fact that food prices are so high. Now, Americans are thinking about cutting spending on low-value items, buying less non-essential groceries, buying bulk and unbranded products, and focusing on more affordable products. Staples. Some people even buy and eat less. In general, consumers only spend on goods they really need.

China is Vietnam's second largest export market, although this market has opened its border since January 8, 2023, the Chinese economy has not recovered as expected. The economy of this country faces many challenges when exports decelerate due to global demand decline; the real estate sector - an important pillar of the Chinese economy is still struggling; Unemployment has directly affected the demand for goods of the people of this country… Meanwhile, the standards for China's imported goods have become increasingly strict.

These are the main reasons leading to Vietnam's export turnover to China in the first 5 months of 2023 estimated at 19.8 billion USD, down 9.3% over the same period last year (in the first 4 months, down 7 .9% over the same period).

The decline in Vietnam's goods exports to the EU market has shown signs of improvement when inflation rates in some major economies of the euro area have "cooled down". Specifically, the consumer price index (CPI) in May decreased (inflation rate in May 2023 of Germany only increased by 6.1% over the same period; France decreased to 5.1% compared with an increase of 5 years). .9% of the previous month; Spain down to 3.2%; Italy down to 7.6%...). Therefore, exports to the EU market in 5 months are estimated at 18.4 billion USD, down 6.5% over the same period (compared to the first 4 months, down 14.1%).

Export turnover to other main markets also continued to decrease such as: ASEAN market reached 13.9 billion USD, down 5.1%; Korea reached 9.5 billion USD, down 7.1%; Japan reached $9.4 billion, up 0.4%.

From the above figures, it can be seen that the Ministry of Industry and Trade has correctly predicted the market's movements and has implemented many solutions to focus on solving difficulties. Accordingly, the Ministry of Industry and Trade determined to focus on innovating and strengthening trade promotion activities towards new and potential markets such as India, Africa, the Middle East and Latin America, East Asia, and Southeast Asia. Europe… and markets less affected by inflation and positive growth (ASEAN). Vigorously breaking into new markets where the middle class is growing such as E7 emerging markets (China, India, Turkey, Russia, Mexico and Indonesia; Halal market (Middle East, Malaysia) , Brunei...).