Hanoi's exports soar despite struggling global supply chain

Jul 10th at 07:55
10-07-2024 07:55:42+07:00

Hanoi's exports soar despite struggling global supply chain

Hanoi's companies are now export leaders, signalizing a bright prospect for the second half of the year.

Hanoi's exporters have successfully navigated the challenging situation with adaptive solutions, enabling the city to capitalize on the upturn in the remaining months of the year.

Dinh Vu Port in Haiphong. Photo: Dinh Vu Port

Bright spots

In June, the export value of goods reached more than US$1.6 billion, a 19% increase year-on-year. In the first six months of this year, the city's total exports hit $8.9 billion, up 11% year-on-year.

Key product groups showed strong growth in export value, such as computers, electronics and components (up 13.6%), transport vehicles and spare parts (up 29.5%), machinery, equipment and parts (up 7%), and agricultural products (up 58.5%).

In contrast to the 6.1% increase in the foreign-invested sector's exports to $3.7 billion, the city's export value rose to $5.2 billion, up 14.8%. This result supports the strong recovery of Vietnam's exports.

Assessing the initial export successes, Nguyen Thuong Lang of the National University of Economics emphasized that the growth in Hanoi's and the country's export earnings indicated the recovery of production and the efforts of local enterprises that took advantage of Vietnam-signed free trade agreements (FTAs). They have also actively sought new customers and adapted to the market.

Le Anh Tuan, Deputy General Director of Hanoi Trade Corporation (Hapro), said the group has been exploring new markets and developing more products to increase export value. The Hanoi-based group has proactively secured export supplies by investing in raw material zones and agricultural processing factories. It currently exports to 80 countries and territories worldwide.

According to Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association (VITAS), to increase export value, the association's members have focused on developing new products and materials, as well as speeding up production to meet demanding orders and delivering products faster.

In addition, local companies are focusing on harnessing the EU-Vietnam Free Trade Agreement (EVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to increase textile and garment exports to the EU market while looking to new markets such as Africa and Russia.

Giang said many textile and garment companies, such as Hanoi-based Dong Xuan Knitting Sole Member Limited Liability Company, have secured orders until August 2024.

Increased support for market expansion

Local experts said Hanoi's economy had passed the first half of the year with positive results and the city needs to intensify trade promotion to maintain the momentum.

Nguyen Anh Duong, Director of the Hanoi Promotion Agency (HPA), said that between now and the end of 2024, the city plans to organize dozens of major trade promotion events at home and abroad, including 8-10 events abroad. Apart from joining international trade fairs, Hanoi is also actively promoting trade through digital platforms by enhancing information exchange with commercial attachés and international organizations.

"For business matchmaking to translate into commercial contracts, local companies need to be proactive and able to meet customers' needs, in addition to the dynamic involvement of regulators," Duong emphasized.

Nguyen Thi Xuyen, CEO of Enviva Technology Consulting JSC, said trade promotion has helped Vietnam's sustainable agricultural production. It has also supported domestic sales and boosted exports amid global economic volatility.

Echoing Xuyen, Vu Ba Phu, Director of the Department of Trade Promotion (Ministry of Industry and Trade), said that some of Hanoi's recent trade promotion programs have built brands and had a broad impact. These activities helped not only businesses in Hanoi, but also those nationwide to promote their products, increase competitiveness, connect with partners, and expand exports.

Among those, Hanoi's annual regional trade fairs and programs aim to access major foreign distribution systems such as AEON (Japan), Lotte (South Korea), Big C and Go! (Central Group), which have created opportunities for businesses to partner with international retail networks and boost local exports.

Deputy Director of the Hanoi Department of Industry and Trade Nguyen Kieu Oanh said the city will continue to help companies tap new markets by taking advantage of the FTA. The agency will regularly update Vietnamese companies on China's evolving import policies at the border gates to help them prepare paperwork for exports to this key market.

"There will also be a focus on developing e-commerce to better leverage digitization and help firms reach overseas distribution channels," she said.

Hanoi Times



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