Import and export turnover in major markets plunges

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Customs officers of Zone 3rd Hai Phong Seaport Customs Branch inspect imports and exports. Photo: N.L

Trade in goods drops more than US$18 billion

According to the General Department of Vietnam Customs, in the first half of March, the import turnover increased by 17.3% to US$ 27.2 billion compared with the second half of the year.

However, as of March 15, the total import and export turnover of the country dropped by 13% or US$18.39 billion to US$122.95 billion compared with the same period in 2022. The total trade in goods of FDI enterprises fell by 12.1% to US$ 86.66 billion.

In the first half of March, the country has trade deficit of US$492 million. As of March 15, the country recorded a surplus of US$ 2.94 billion.

The total import and export turnover decreased by 10.8% or US$7.64 billion year-on-year to US$62.94 billion. The turnover of some commodities plunged such as textiles and garments down 18% or US$1.27 billion; wood and wooden products down 30.6% to US$963 million; computers, electronic products and components down 8.9% or US$ 906 million, mobile phones and accessories down 5% or US$577 million.

The country’s import turnover decreased by 15.2% to US$ 60 billion year-on-year. The import turnover of some commodity groups sharply decreased such as mobile phones and components down 64.5% or US$ 2.92 billion; computers, electronic products and components down 11% or US$1.95 billion; machinery, equipment, tools and spare parts down 16.5% or US$ 1.44 billion.

Abnormal decline

The sharp decline in import-export turnover in the first two months of the year is an abnormal decline because the import and export activities have maintained high growth. For example, import and export turnover in the first months of the three years affected by the Covid-19 pandemic still surged. The turnover increased by 14.3%, 24.2% and 4.4% in 2022, 2021, 2020, respectively.

However, the problems have been mentioned by the Customs and enterprises in conferences.

In the northern border area, although China restored import and export activities from the beginning of 2023, the turnover has not seen growth as expected. The turnover in key areas such as Lao Cai decreased by 43.6%. The import and export turnover with China in the first two months plunged, including export turnover down 5.3% or US$ 7.39 billion; imports down 24.8% or US$ 13.93 billion.

The turnover of other major markets also recorded a sharp decrease.

Vietnam’s trade with Asia declined by 12.4% to US$ 62.8 billion, accounting for 65.5% of the total import and export turnover of the country.

For other continents as America dropped by 18.2% to US$18.9 billion, Europe fell by 13.3% to US$ 10.83 billion, Oceania dropped by 3.5% to US$2.25 billion and Africa went down by 3.7% to US$ 1.07 billion.

For the export market (in terms of countries and territories), South Korea is the only major market with positive growth. Currently, the country is the third largest exporter of Vietnam (behind the US and China).

According to preliminary statistics of the General Department of Vietnam Customs, the export turnover to South Korea recorded a year-on-year increase of 2.1% to US$ 3.79 billion. This is the only major market with positive growth in turnover, while exports to other leading markets such as the US, China, Japan, or ASEAN fell.

To achieve the turnover as in 2022 (more than US$730 billion), in the remaining months of the year, the turnover each month on average must reach about US$64 billion, up to US$15 billion per month higher than that in the first 2.5 months of the year. This is a big challenge for economic executives and the business community.