Ho Chi Minh City: economic motive force is still a bright spot for exporting goods

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Import and export goods at Cat Lai port in Ho Chi Minh City. Photo: T.H.

Import and export turnover has increased

Both export and import turnover of enterprises in Ho Chi Minh City through border gates across the country had a good growth in March and the first three months of 2020. Accordingly, the total export turnover of Ho Chi Minh City enterprises in the nationwide border gates in the month reached US$3,473.3 million, up 8% over the previous month. In particular, the export turnover excluding crude oil reached US$3,271.3 million, up 8.5%.

The total import turnover of city’s enterprises at nationwide border gates in March reached US$4,211.2 million, up 10% from the previous month. Accumulated in the first three months of 2020, the total import turnover of city’s enterprises at border gates across the country is estimated at US$11,348.9 million, up 2.4% over the same period last year.

Notably, in exports, the non-State economic sector reached US$932.7 million, up 15.9%; foreign-invested economic sector reached US$2,042.2 million, up 5.6%. In general, most export products in March increased over the previous month, of which some export items increased significantly, such as: rice increased by 29.1%; fishery increased by 20.4%; textile and garment increased by 18.6%; bags, wallets, suitcases increased by 16.7%; pepper by 16.1%; cashew nuts increased by 16%; plastic products increased by 15.7%; wood and wood products increased by 15.6%.

Generally, for the first three months of 2020, export turnover of city’s enterprises at border gates across the country is estimated at US$9,853.8 million, up 7.5% over the same period last year.

The structure of export goods through the city’s port in the first three months of 2020 of city’s enterprises (excluding crude oil) includes: occupying 10% of total export turnover of goods, agricultural products with export value reaching US$860.5 million, down 3.2%; rice with export volume reached 102,400 tons with a value of US$207 million, up 3.2%, over the same period.

Export turnover of industrial goods reached US$6,756.8 million, up 11.3% over the same period and accounting for 78.4%. In particular, computer products, electronic products and components accounted for 41.6%, the export value reached US$3,587.7 million, up 35.3%; footwear with export value reached US$604 million, up 4.3%, accounting for 7.0%; machinery, equipment, tools and other spare parts with export value reached US$505.4 million, up 2.8%, accounting for 5.9%.

Stable export in many major markets

The remarkable point is that Ho Chi Minh City still tries to maintain export stability in some key markets. China is still the largest export market for the city’s enterprises with export turnover in the first three months of 2020 reaching US$2,150.5 million, up 31.6% over the same period in 2019 and accounting for 23.4% of export proportion.

The second largest export market is the United States with an export turnover of US$1,582.6 million, up 5.9% over the same period and accounting for 17.2%. Exports to Japan reached US$777.2 million, down 1.8% over the same period and accounted for 8.5% of the export proportion.

For markets where Vietnam has participated in free trade agreements (FTA), the export value in the first three months of 2020 tends to decrease. In particular, exports to Europe (EVFTA) in the first three months of 2020 reached US$1,155.7 million, down 8.4% over the same period and accounted for 12.6% of total export turnover of the city.

According to Ho Chi Minh City, in the first quarter of 2020, global economic growth declined due to the impact of the Covid-19 pandemic and crude oil prices plummeted. In the country, prices were partly affected by gold prices, world oil prices; tourism industry is facing difficulties due to epidemics; the livestock industry which has not been able to recover from the African swine fever is at risk of becoming infected with another pandemic.

Facing these difficulties and challenges, the Party Committee and the People's Committee of Ho Chi Minh City led and directed sectors and districts to focus on preventing and fighting against epidemics effectively and drastically with the spirit of "fighting against epidemics like fighting against aggressors”, and ensure the implementation of objectives and tasks of socio-economic development.

With many synchronous solutions, although the development targets are lower than the same period, there are still bright spots. Gross regional domestic product (GRDP) is estimated to increase by 0.42% (the same period increased by 7.64%). The index of industrial production (IIP) in the first three months of 2020 reached 99.01% over the same period in 2019, down by 0.99%. Total retail sales of consumer goods and services reached VND316,909 billion, down 1.7% over the same period; total social investment reached VND60,276 billion, down 15.7% over the same period (first quarter of 2019 increased by 11.9%).