Vietnam's Export Turnover projected to hit US$ 200 billion in 2017

Accordingly, remarkable performance was recorded in fuel and minerals (up 40.2%) with export turnover of US$ 2.29 billion; processing industry (up 19.1%) with US$ 78.56 billion; the agro-forestry-fishery sector (up 16.7%) with US$ 12.1 billion.
2 years ago

VGP News - By Kim Loan

Export turnover was estimated at US$ 97.7 billion in the first half of 2017, up 18.8% against the same period last year, reported the Department of Export- Import under the Ministry of Industry and Trade (MoIT).

Vice Director of the Export-Import Department Tran Thanh Hai attributed the surge in H1 to hikes in price of fuel and agricultural products and quantity of processed, manufactured and mineral products.

Accordingly, remarkable performance was recorded in fuel and minerals (up 40.2%) with export turnover of US$ 2.29 billion; processing industry (up 19.1%) with US$ 78.56 billion; the agro-forestry-fishery sector (up 16.7%) with US$ 12.1 billion.  

Meanwhile, import turnover was US$ 100.5 billion in the first half, representing a year-on-year growth of 24.1%. Import turnover of domestic enterprises was US$ 39.8 billion (up 18.1%). The FDI sector imported US$ 60.66 billion, up 28.4%.

The rising import turnover came from higher demands for machines, equipment, raw materials, and fuel for production and export.

The situation showed positive signs as Viet Nam chiefly imported goods from the U.S. (up 24.2%).  

However, Mr. Hai noticed that it is necessary to control import hike of such products as fruits and vegetables (up 81.7%), steel scrap (up 59.4%), motorbikes and spare parts (up 14.3%).

Expecting for US$ 200 billon of export turnover

Vice Director Hai stressed that overseas shipment of industries occupied over 80% of the total; agricultural products 15%, and mining only 5%. The trend would ensure export sustainability.  

However, there remained weaknesses. Specifically, overseas shipments of garments, textiles, footwear, and electronic devices were lagged behind in the value chain. Viet Nam is chiefly engaging in processing and has yet churned out high values in designing, brand names, and logistics.

The auxiliary industries have yet matured to keep up with development standards of other industries including automobile, garments and textiles, and footwear and mainly relied on imported raw materials.  

The group of farming products are heavily dependent in weather conditions.  

Deputy Minister of Industry and Trade Do Thang Hai projected that in the rest of the year, export would surge highly as some industrial products would enter new growth trends namely garments and textiles, footwear, and furniture. He forecast that export turnover may touch around US$ 200 billion, up over 13% against the same period last year and surpassing the preset goal.

Thus, import turnover was estimated at US$ 205 billion, up 17% against the same period last year. Trade gap was projected at about US$ 5 billion, equivalent to 2.5% of export turnover, and lower than the preset norm.

However, to meet the goal, the MoIT will have to extricate difficulties on domestic production, export projects and facilitate export-oriented products.

The MoIT will disseminate market information; remove market barriers; and facilitate conditions for exports especially agricultural and aquatic products.

Noticeably, in the rest of the year, the MoIT will tighten management of imports by applying preventive measures in line with legal regulations and international commitments.

Source: VGP News

Illustration Photo: a Vietnamese container ship on Hai Phong - Hong Kong route (credits: ILO / Hoa Tran / Flickr Creative Commons Attribution-NonCommercial-NoDerivs 3.0 IGO License)


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