Export figures underpin strong 2019 for Vietnam
Export figures underpin strong 2019 for Vietnam
Key indicators on industry, trade, integration, and administrative reform reached and exceeded the plan for 2019, illustrating strong momentum for 2020 and beyond.Minister of Industry and Trade Tran Tuan Anh reported at the annual review conference in Hanoi last week that Vietnam’s foreign trade for the first time reached over $500 billion in 2019, up 7.6 on-year, with a record trade surplus of $9.94 billion.
Under that, the total export turnover is estimated at $263.45 billion, up 8.1 per cent on-year, exceeding the targets set by National Assembly and the government. Meanwhile import has been well controlled at $253.5 billion. It is the fourth year in a row that Vietnam has recorded a trade surplus.
The recent efforts of the Ministry of Industry and Trade (MoIT) to negotiate and open markets through free trade agreements have helped enterprises reach positive results. Exports to the ASEAN hit $23.4 billion, up 2 per cent on-year, while those to Japan reached $18.6 billion and South Korea $18.4 billion, up 7.6 and 10 per cent, respectively.
The number of commodities joining the $1 billion export club increased from 20 in 2010 to 31 in 2019.
Prime Minister Nguyen Xuan Phuc applauded the achievements, stating, “In the context of the global downturn, even larger countries being unable to reach a growth high. We recognise objectively the comprehensive achievement of 2019 as a direct and great contribution across the whole of industry and trade.”
“The main driving force for economic growth is still the industrial sector,” the PM added. “This is especially true for processing and manufacturing and trade, reflected in the high consumption demand of the economy.”
In comparison with other countries in the region, Thailand witnessed 4 per cent of export growth, while Malaysia and Indonesia were estimated to see an export growth reduction in 2019 by 1.8 and 5.7 per cent, respectively.
Along with a bright spot in import and export activities, the production index of the whole industry is estimated to increase by 9.1 per cent, exceeding the set target of 9 per cent.
The highlight is that the manufacturing and processing industry maintained growth momentum, up 10.5 per cent on-year, creating solid motivation to achieve the overall growth plan of the whole industry.
The positive contribution to industry growth includes the part played by major projects in operation, including the Formosa Ha Tinh steel complex working at full capacity through two blast furnaces and with expected output of 6.7 million tonnes per year; and the VinFast automobile factory, which was inaugurated and officially put into operation in June, three months earlier than initially planned.
The year has also seen completion and official operation of the Vinh Tan 2 solar power plant, with expected annual supply to the national electricity system of about 68.4 million kilowatt hours.
As the leading auto manufacture, assembly, and distribution company, Truong Hai Auto Corporation, known for THACO, earned $14.5 million from exports of components and spare parts this year. “In 2020 we seek to export 1,026 cars of all types to foreign countries,” said THACO chairman Tran Ba Duong.
The group plans to expand reach further into Southeast Asian nations such as the Philippines, in an attempt to hit $21 million in exports in the upcoming year.
However, the year to come remains challenging due to the ongoing trade dispute between the United States and China, as well as trade fraud and global trade estimated to grow slowly.
In 2020, Vietnam has set a target that the country’s total import-export turnover will increase by 7-8 per cent on-year.
