Vietnam’s export growth depends on pandemic control

Vietnam’s export growth depends on pandemic control

Vietnam’s export growth is slowing due to the resurgence of the Covid-19 pandemic. From now until the end of the year, export growth will depend greatly on pandemic control as well as Covid-19 vaccinations.

Vaccine is considered the fastest way for the economy to recover from the Covid-19 pandemic

Trade deficit of US$2.7 billion

Total import-export turnover in July reached an estimated US$55.7 billion, an increase of 1.5 percent compared to a year ago, bringing the figure in the first seven months of the year to US$373.36 billion. Seven-month exports reached US$185.33 billion, a year-on-year increase of 25.5 percent, while imports surged 35.3 percent to US$188.03 billion.

The January-July period saw 27 categories of exports earning more than US$1 billion each, with phones and components topping the list. In particular, processed industrial goods, agro-fishery products, and materials and mineral resources recorded positive export growth during the reviewed period.

Vietnam posted a trade deficit of US$1.7 billion in July, bringing the figure in the first seven months of 2021 to US$2.7 billion.

According to the Ministry of Industry and Trade, the Covid-19 pandemic is negatively affecting trade and production and export growth will depend greatly on pandemic control as well as Covid-19 vaccinations.

Mobile phone products are among Vietnam’s key exports

Optimism about trade balance

The acceleration of vaccinations and the reopening of the economy in countries around the world have contributed to increasing demand for Vietnam’s garments and textiles, leather and footwear, furniture and electronics. A number of economies have deployed stimulus packages, thereby promoting consumption of goods, including those imported from Vietnam.

Free trade agreements to which Vietnam is a signatory have also proven effective, creating favorable conditions for Vietnamese goods to enter foreign markets and increase the export value.

Tran Thanh Hai, deputy director of the Agency of Foreign Trade under the Ministry of Industry and Trade, said export activities are normally busier in the final months of the year. Therefore, Vietnam is expected to record growth in exports for the rest of the year to balance trade, Hai said.

However, import-export activities may be negatively affected because of the resurgence of Covid-19 in Southeast Asian countries. In Vietnam, many localities are implementing government mandated social distancing, interrupting the circulation and transportation of goods. In addition, there is a serious shortage of containers for exports, while costs of logistics and international shipping remain high.

VietNam Economic News