Granting preferential C/O increased sharply in the first half of 2022

Textile and garments are one of the typical industries that make good use of the FTA to boost exports in the first half of this year. Photo: Nguyễn Thanh

According to the Ministry of Industry and Trade in the first six months of 2022, import and export turnover continued to increase with a total turnover of more than US$371.3 billion. In particular, export turnover of goods increased by 17.3% compared to the same period last year (increased by 29.2%), reaching more than US$186 billion. Exports of the domestic economic sector increased higher than the FDI sector, increasing by 19.5% (FDI sector, including crude oil, increased by 16.6%).

"This shows the efforts of domestic enterprises in restoring production and business and resuming the supply chain in difficult conditions," Mrs. Nguyen Thuy Hien, Deputy Director of the Planning Department (Ministry of Industry and Trade) said at a conference to review the work of the first six months of 2022 and implement the tasks in the last six months of 2022 of the Ministry of Industry and Trade on July 14.

From the perspective of the industry, Mrs. Hien analyzed that exports increased steadily in commodity groups, in which fuel and minerals increased the highest (growing by 52.5%), due to export prices of commodities (petroleum, crude oil and coal) increasing sharply.

Exports of agricultural products, aquatic products, and processing and manufacturing industries all increased by about 17%; focusing on products that Vietnam has strengths and well exploits the Free Trade Agreements (FTAs) such as textiles and garments, footwear, seafood, etc. Furthermore, groups of commodities take advantage of high prices to promote exports such as chemicals, plastic products and fertilizers.

The leader of the Planning Department said: “Businesses have made good use of FTAs, especially new-generation FTAs ​​such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and EVFTA to promote exports".

In the first six months of 2022, the issuance of Certificate of Origin (C/O) from CPTPP reached US$1.32 billion, increasing by 22.1% over the same period last year; granting C/O from EUR.1 to the EU reached US$5.84 billion, an increase of 32.1% compared to the same period last year…

On the import side, the import turnover of goods in the first six months of the year reached US$185.3 billion, increasing by 15.5% over the same period last year and was basically controlled. The imports of goods for export production and essential goods accounted for 88.8%; imports of the group of goods that need to be controlled accounted for only 5.8%.

“The trade balance continued to maintain a trade surplus of US$743 million (the same period last year witnessed a trade deficit of US$1.86 billion), contributing positively to the balance of payments, stabilizing exchange rates and stabilizing of macroeconomics indicators of the economy," Mrs. Nguyen Thi Thuy Hien said.

In the second half of the year, it is forecasted that the economy will remain unpredictable. To strive to complete and exceed the targets assigned by the National Assembly and the Government in 2022, including: the index of industrial production (IIP) increasing by about 7-8%; export turnover increasing by about 8%, and maintaining a trade surplus., the Industry and Trade sector determined to focus on boosting exports and promoting production development.

Supporting businesses in market information, export promotion, taking advantage of commitments in signed FTAs ​​and through global value chains to find new markets and encouraging businesses to innovate to create new products.

Besides that, the Ministry of Industry and Trade will also focus on removing difficulties for businesses and localities; working and closely monitoring major projects, industries and a number of key areas to grasp the situation and handle and remove difficulties to boost production, especially raw materials, fuel and input materials, import, control imports and proactively supply domestic substitutes for imported sources.

"The ministry will also maximize resources, closely monitor the situation and have a plan to prepare for the scenarios in order to ensure sufficient supply of electricity, coal, petrol and fertilizer, etc. for production and daily life," Mrs. Hien said.