The export turnover target of 6% increase in 2024 is completely feasible!

Dr. Le Quoc Phuong - Former Deputy Director of the Center for Industry and Trade Information ( Ministry of Industry and Trade ) had an interview with reporters of the Industry and Trade Newspaper about this issue.

Dr. Le Quoc Phuong - Former Deputy Director of the Center for Industry and Trade Information (Ministry of Industry and Trade)

In the first half of 2024, import and export were a bright spot in the economy with very high growth. What do you think about the factors that have helped increase import and export turnover in recent times?

According to the General Statistics Office, in the first 6 months of 2024, the total import and export turnover of goods reached 368.53 billion USD, an increase of 15.7% over the same period last year, of which exports increased by 14.5%; imports increased by 17%. The trade balance of goods had a surplus of 11.63 billion USD. Thus, it can be seen that this is a very high growth figure, a bright spot of the economy.

The reason for this growth is the recovery of the world economy when inflation begins to decrease compared to 2022 and 2023. Recently, the world's major economies have been moving to reduce interest rates, stimulating increased consumption. In addition, in the past 2 years, buyers have released all the inventory accumulated during the Covid-19 pandemic and started to increase imports of goods, leading to increased demand.

Domestically, businesses have prepared very carefully for the period when demand for goods increases again by preparing abundant sources of goods. When the world demand for goods tends to increase again, businesses have seized the opportunity, accelerated the introduction of goods to the market, ready to meet the demand for orders.

In addition, in the first 6 months of 2023, both imports and exports decreased sharply. This is also the room for us to have impressive import-export growth figures in the first 6 months of this year.

Import-export turnover in the first half of 2024 grew very high (Photo: Can Dung)

Not only exports but also imports of goods had a very high growth rate in the first half of the year with the figure of 17%. What do you think about this import growth rate?

I think the increase in goods imports is a good sign for the economy. The reason is that imported goods account for the majority of raw materials for production. Compared to the decrease of 18.4% in the total import turnover of goods in the first 6 months of 2023, the growth of 17% in the first half of this year shows that businesses have been and are increasing the import of raw materials for production. This has contributed to improving the efficiency of exporting goods in the past time and in the coming months.

The Ministry of Industry and Trade has set a target of 6% export growth in 2024. With the results achieved in the first 6 months of the year, what is your assessment of this target of the Ministry of Industry and Trade?

In my opinion, in the last 6 months of the year, there will be plenty of room for import and export of goods. Because central banks in major markets for Vietnamese goods such as the US and UK will take action to reduce interest rates. Although the reduction may not be high, this is still a good move, helping to facilitate economic growth, stimulate consumer demand and increase import turnover. This is a good opportunity for Vietnamese goods to increase export turnover.

In addition, Vietnamese enterprises have been well prepared and are currently taking advantage of FTAs. Therefore, I believe that the export turnover growth target of 6% in 2024 is completely feasible.

However, I think the goal is not only to achieve export turnover for 2024 but also a longer-term goal. Because although Vietnam is still a poor country, the competitiveness of products and goods is still limited, but currently, Vietnam has entered the Top 20 economies with the largest trade scale. Many Vietnamese products are in the Top of exports such as: Rice, pepper, textiles... that is, Vietnam can be classified as one of the export powers. Therefore, it is necessary to have a response worthy of the position of a power. That is, there can be no delay in bringing export products and goods to meet the increasingly strict standards of the market.

Now that we have signed FTAs, tariff barriers have been reduced, but non-tariff barriers such as technical standards and food safety and hygiene have increased. EU market regulations such as anti-IUU fishing for seafood, EU Deforestation Regulation (EUDR); food safety regulations of Japan, Korea, etc. have made goods increasingly subject to fierce competition in the market. This is a global trend and is expected to become increasingly strict, forcing businesses to comply or leave the "game".

In addition, businesses need to diversify their markets, bringing their products to niche markets with great potential such as the Middle East, Africa, South America, etc. in addition to traditional markets. This will reduce the risk of goods being dependent on one market.

What do you think about the efforts of the Ministry of Industry and Trade in promoting import and export of goods in recent times?

I think that the Ministry of Industry and Trade has performed well its state management role in promoting import and export in recent times, contributing positively to the overall achievements.

Specifically, in recent times, the Ministry of Industry and Trade has stepped up trade promotion activities and expanded markets for goods. Trade promotion activities are increasingly in-depth, focusing more on specific groups of goods or markets to support businesses' goods to reach more customers in more markets.

At the same time, the Ministry of Industry and Trade has supported businesses to understand and make better use of signed FTAs.

In addition, the Ministry of Industry and Trade strives to implement trade defense measures to support businesses, not only for exported goods but also imported goods. Thereby, supporting goods to improve their competitiveness in the market.

These will still be solutions that the Ministry of Industry and Trade needs to actively implement in the coming time to contribute to maintaining the growth momentum of goods export turnover.

Thank you!

Source: https://congthuong.vn/muc-tieu-kim-ngach-xuat-khau-nam-2024-tang-6-hoan-toan-kha-thi-329408.html