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Phones and accessories continue to be key export items in the first half of this year.

Internal firms rise

According to the latest report of the Ministry of Industry and Trade, in the first half of 2018, exports are estimated at nearly $US 114 billion, an increase of 16% over the same period in 2017, equal to 48% of the year plan. By the end of June 2018, there were 20 items worth more than $US 1 billion. The leading items in export turnover included telephones and accessories ($US 22.5 billion); computers, electronic products and components ($US 13.45 billion); textiles and garments ($US 13.42 billion); machinery, equipment, tools and accessories ($US 7.8 billion), and footwear of all kinds ($US 7.79 billion).

Mr. Duong Duy Hung, Head of the Planning and Investment Department under the Ministry of Industry and Trade, said that the positive points in the first half of 2018 were clearly expressed when the domestic investment sector improved its growth rate compared to the foreign invested sector. Specifically, the sector of 100% domestic export is estimated to reach $US 33.07 billion, an increase of 19.9%, higher than an increase of 16.3% in 2017. Meanwhile, the foreign invested sector, including crude oil exports which are estimated at $US 80.86 billion, produced an increase of 14.5%, lower than an increase of 20.7% in 2017.

"This positive factor has been seen in the last months of 2017 and continues to be maintained in the first half of 2018," Mr. Hung said. He also emphasized that in the first half of 2018, Vietnam made good use of the tariff preferences in the signed FTAto expand new export markets. Accordingly, Vietnam's export turnover to the US market increased by 9.2%, turnover to EU increased by 12.3%, and turnover to China increased by 28%. Especially, Vietnam's export growth rate to some potential markets also recorded significant growth to countries such as; India with an increase of 96.6%, Iraq with an increase of 27.9%, and Russia with an increase of 25.4%.

Looking at the results achieved in the first half of 2018, Mr. Phan Van Chinh, the Director of the Import-Export Department (under the Ministry of Industry and Trade) analyzed that the lessons were to thoroughly understand the three major pillars of product development, create sources for export, and promote market development and export organization to achieve high efficiency. Regarding product development, both FDI enterprises and domestic companies are very interested in market signals for investment in production. In particular, in agriculture and fishery, Vietnam has a high production capacity. On the development of foreign markets,it is not only Vietnamese markets that have signed FTA, but even non-FTA markets also recorded strong export growth. Regarding the export organization, this year, it is remarkable that the combination of export and formal trade as well as the trade with China are quite good.

Exports will reach more than $US 236 billion

The Ministry of Industry and Trade said in the second half of 2018, there were many favorable conditions for export. In general, agricultural and fishery exports are expected to increase in the middle of 2018 and reach the highest level at the end of the year. The industrial products with large export turnover such as textiles, footwear and furniture are in the export season from the middle of the second quarter of 2018. In addition, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Vietnam-EU FTA are expected to come into effect in 2019, which creates new attraction for foreign direct investment. It is forecasted that the export turnover of 2018 could reach $US 236.6 billion, an increase of 10% against 2017. Some export items with high turnover are forecasted to continue to grow well as follows: telephones and accessories reached $US 50 billion (an increase of about 10.4%); computers and components are estimated at $US 30 billion (an increase of about 15.6%); textiles and garments are estimated at $US 28.5 billion (an increase of about 9.5%); footwear is estimated at $US 16 billion (an increase of about 9.2%); and machinery, equipment, tools and spare parts are estimated at $US 14.7 billion (an increase of about 15%).

However, Mr. Hung said that export continued to face many difficulties and challenges. Prominent issues are that some countries are strengthening the application of protection measures with food safety standards, and increasingly apply strict protection of the environment to make exported products of Vietnam difficult in the market, such as the EU’s"yellow card" warning for seafood, US anti-dumping duties for pangasius. In addition, many countries issue regulations on traceability and the media smears the export of Vietnam in some countries (pangasius in EU and cashew in India). "In the first half of 2018, exports on average reached $US 19.5 billion a month. To achieve the general results, the last 6 months of exports must reach $US 20.45 billion per month. The average export turnover is a great challenge in the context of the world market with many unpredictable changes. This requires efforts not only from the Ministry of Industry and Trade, but also from the relevant ministries and the business community," Mr. Hung said.

Coffee exports estimated at US$3 billion Vietnam is expected to export around 1.5 million tons of coffee with an estimated value of US$3 ...

As for the end of 2018, the Minister of Industry and Trade Tran Tuan Anh said,"Export growth must develop in both breadth and depth. Till now, broad-based growth has been achieved, but needs close revision. With regard to market development, in the context of current trade conflicts, increasingly demanding markets are imposing technical barriers and protection barriers, and this requires the use of chaining to solve the market problem. All ministries, sectors such as the Ministry of Industry and Trade, the Ministry of Agriculture and Rural Development and the Ministry of Finance must take part in meeting the requirements of sustainable development.”