Nghe An: Will the traditional export market recover in the last 6 months of 2023?

In the first 6 months of 2023, products such as cement, seafood products, shoes of all kinds, electric wires and cables, wood pellets... continue to play a supporting role in the export sector . Many export agricultural products have very good growth such as rice, processed vegetables and fruits. Those are the significant highlights in the export activities in the first 6 months of 2023.

In the first 6 months of the year, Nghe An textile and garment export turnover decreased by 11.6%. In the photo: Production at Sangwoo Garment Company, VSIP Nghe An Industrial Park.

Mr. Hoang Minh Tuan - Head of Import-Export Management Department of Nghe An Department of Industry and Trade said : " The export and import results in the first 6 months have decreased compared to the same period last year, but basically, we see that the trade balance is also decreasing. at a stable level”.

Explaining the cause of the decrease in turnover of some key products such as steel sheet, Mr. Tuan said that the export turnover of steel sheet products in 2022 increased sharply due to the complicated epidemic situation in the provinces. southern. This year, the amount of manufactured goods for export returns to stable as in previous years, so the turnover will decrease compared to 2022.…

"Or items such as textiles, textile fibers have all decreased, due to reduced consumption demand, possibly due to high inflation. When prices rise too high, customers focus on items. 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, reduced consumer demand ..." he Tuan said.

According to Mr. Tuan, the opportunity for export of consumer goods will recover in the coming months. And with the initiative and readiness of businesses, export orders will soon be met. However, it is expected that the last months of the year will reach the set plan, but expecting a high growth rate is very difficult…

Goods exported through Cua Lo port (Nghe An)

Data from the Department of Industry and Trade shows that, in 6 months, besides a number of items with growth compared to the same period in 2022, there are many items with a decrease in turnover compared to the same period in 2022.

Specifically, textiles and garments decreased by 11.6%, electronic components by 22.3%, steel sheets of all kinds by 19.1%, wood chips by 28.2%, cassava and cassava products down 26.7 %; textile fibers of all kinds, down 68.5%; The group of turpentine and cedar incense decreased by 28.6%, tea decreased by 15%, paving stone decreased by 9%, superfine white limestone powder decreased by 19%...

In the first 6 months of the year, businesses in Nghe An have made efforts to export to 126 countries and territories around the world. However, some traditional markets of enterprises in Nghe An had a decrease in turnover such as: China down 11.14%, the US down 1.5%, Taiwan down 38.6%, Switzerland down 10 .6%, Philippines down 21.44%, Bangladesh down 45.8%...

In general, export turnover to most major trading partners and markets decreased. In which, the US continues to be Vietnam's largest export market with a turnover of 28.64 billion USD, but compared to the same period last year, it decreased by 21.6%.

The Chinese market ranked second with 15.49 billion USD, down 13% over the same period last year. In addition, the export of goods to the EU market reached 14.22 billion USD, down 10.6%; ASEAN market decreased by 3.6%; Korea down 9.6%...

According to a representative of the Department of Industry and Trade, the reasons for the decline can be listed as: Some traditional markets of Nghe An enterprises have encountered difficulties such as China, which has just opened, the supply chain has not recovered, the policy of tightening control control over agricultural products and foodstuffs. Or the US market, due to the economic recession, consumer demand decreased. For the EU, due to tight monetary policy, rising inflation, increasingly strict standards and regulations...

Paving stone products decreased by 9%, ultra-fine white limestone powder decreased by 19%...

In addition, in the years 2021-2022, the Ministry of Industry and Trade has informed and supported to attend international trade exchanges but have not been interested in registration by Nghe An enterprises. Not many businesses and products of Nghe An have been promoted and consumed on large, prestigious international e-commerce exchanges (such as Alibaba, Amazon...) due to the participation standards and technical barriers of the exchanges. This is very high. OCOP products, agricultural products, fresh seafood... of people with short shelf life are usually not listed on the floor; On the other hand, small businesses and agricultural cooperatives do not have technical staff to be on duty on the floor, interacting with buyers when asking questions or making orders, etc. is also a big challenge.

Mr. Pham Van Hoa - Director of the Department of Industry and Trade mentioned the fact that export conditions are increasingly difficult. .

Therefore, once entering the market, businesses still have to pay special attention to maintaining good product quality and meeting the quality requirements of the host country because if they do not, they will immediately get fired and it will be difficult to regain credibility.

In the context of many difficulties ahead, according to Director of Nghe An Department of Industry and Trade Pham Van Hoa, it is necessary to research solutions to support and encourage small-scale exporters to switch to official export. Continue disseminating about rules of origin and how to meet rules of origin to help businesses seize the opportunities opened up by FTAs, further improving the rate of taking advantage of incentives in FTAs. Promote information, propaganda, dissemination, supply and update of information on the situation of international economic integration and businesses in order to timely grasp market information, products as well as information about the market. as regulations are increasingly changed, more frequent and stricter, in order to facilitate the export of goods in the coming time.

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