Vietnam on course to beat export record

Experts made the forecast following a report released by the General Department of Vietnam Customs stating that exports between January and mid-November made US$212.64 billion in revenue, a year on year rise of 15.1%.

Telephones and their components, garments and textiles, along with footwear topped the list, surging by US$4.65 billion, US$3.68 billion, and US$1.28 billion, respectively.

Exports of farm produce also soared by between 11 and 13%. A particular area of growth in the farming sector has been the export of rice, with exports receiving the green light from a number of Asian and African countries.

Asian countries such as the Philippines are in need of an additional 500,000 to 800,000 tonnes of rice in order to meet domestic demand.

Floods and poor weather conditions in Indonesia and a number of African countries has affected cultivation and therefore triggered a high demand for rice imports. In addition to the soaring demand, many Chinese traders are seeking Vietnamese partners for long-term suppliers of rice.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), aquatic exports have been strong, reaching US$879 million in October, up 13% against the previous month. The strong figures from October lifted the total value of aquatic exports in the first ten months of the year to US$7.24 billion, a year-on-year rise of 6.2%.

After enjoying strong growth in the export market during 2018, experts believe that the best is yet to come. Experts have stated that the end of the year is the peak season for overseas orders, allowing for the prospect of lucrative future revenue. They noted that Vietnam is estimated to earn US$240 billion in total from exports this year, up by 10 to 12% year on year.

This figure is regardless of the situation with the ongoing US-China trade war, the increasing level of trade barriers and more protectionist policies from state actors.

In a bid to maintain the country’s strong level of exports in December, the Ministry of Industry and Trade stated it will keep a close watch on developments of world trading, especially those related to the US-China trade war.

The ministry also aims at setting forth measures to stimulate the shipment of items at a comparative advantage and tightening up controls on trade fraud.

Meanwhile, the ministry will consider solutions for expanding sales from major importers as well as measures to help aquatic products penetrate new markets. Additionally, efforts will be made to speed up the negotiation, signing and ratification of free trade agreements between Vietnam and trade partners.

According to the General Statistics Office of Vietnam, the country reaped nearly US$ 214 billion from exports last year, up 21.1% year on year. This figure represents the highest recorded export value over the past few years. Of the figure, US$155.24 billion was contributed by the foreign direct investment (FDI) sector with the rest coming from the domestic sector.