( Quang Ngai Newspaper) - Due to various reasons, Vietnam's export turnover in general, and Quang Ngai's in particular, is currently experiencing a sharp decline. Exports are also one of the three important areas that Prime Minister Pham Minh Chinh has directed ministries, sectors, and localities to take strong action to support businesses in overcoming difficulties and stabilizing their operations.
Export turnover decreased.
Quang Ngai's export turnover from January to April 2023 remained at an average level of only about 160-200 million USD per month, with unstable growth. At the end of the four months, the province's total export turnover reached only about 720 million USD, a decrease of approximately 17% compared to the same period in 2022. Export volumes decreased across various sectors, including processed seafood, wood products, wood chips for paper production, garments, fuel oil (FO), textile fibers, yarns, and fabrics. Although steel exports contributed significantly to the total export turnover, they decreased by 9.4% in April and are expected to continue declining in May.
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| The wood chip export port in the Dung Quat Economic Zone is experiencing fewer ship arrivals than before due to a sharp decline in orders. |
According to information from the Provincial Customs Department, a number of export businesses are currently facing significant difficulties, with declining export turnover leading to a sharp decrease in budget revenue in this sector. Total budget revenue from exports as of the end of May 2023 reached only about 3,000 billion VND, equivalent to 37% of the assigned target, a decrease of 43% compared to the same period in 2022. Of this, Hoa Phat Dung Quat Steel Joint Stock Company and Binh Son Refinery and Petrochemical Joint Stock Company contributed up to 90% of the total revenue, while the remaining 400 businesses accounted for only 10%.
The Department of Industry and Trade assessed that the reason for the decline in exports was due to a decrease in the global market's demand for imported goods. This is a consequence of high inflation and the effects of the Russia-Ukraine conflict, as well as tensions in trade relations between the US, Europe, and China. In addition, the current trend among some importers is smaller orders with faster delivery times. Some orders have production and delivery times of only 5-7 days and require higher quality standards, making it unaffordable for exporting businesses.
Supporting and resolving difficulties for businesses.
“In the context of difficulties in European and American markets due to a sharp decline in purchasing power, exports still have opportunities to exploit Asian markets, taking advantage of the rapid recovery of ASEAN regional markets and some countries such as Japan and South Korea. Quang Ngai expects export activities to recover and increase again by the end of this year when it enters the peak export season. Therefore, from now on, the Government and the Provincial People's Committee need to consider promptly resolving the obstacles and difficulties that export businesses have requested related to reducing interest rates, reforming administrative procedures, reducing land rent, etc.” Deputy Director of the Department of Industry and Trade |
Prime Minister Pham Minh Chinh signed and issued Official Dispatch No. 238/CD-TTg on April 10, 2023, on promoting production, business, investment, construction, and import-export in the coming period. This dispatch requires relevant agencies and localities to actively and proactively focus on decisively directing and guiding the handling and resolution of legal and administrative obstacles, access to capital, business conditions, bank liquidity, debt, taxes, fees, and charges... so that businesses can overcome difficulties and stabilize their operations.
In Quang Ngai province, export difficulties are becoming increasingly apparent, especially for the garment industry. Many garment processing businesses are having to cut workers and reduce management costs, while simultaneously focusing on securing new orders to maintain operations. Businesses attribute these difficulties primarily to objective factors, specifically a 20-40% decrease in orders compared to the same period in 2022, due to reduced export market demand. According to representatives of Vinatex factories in Quang Ngai, although a 6-10% decrease in global textile demand in 2023 was anticipated, the businesses did not anticipate such a sharp drop in orders as early as the first quarter of 2023. New orders are small in value, with unit prices 20-50% lower, and are also unstable.
The province's export sector attracts approximately 400 operating businesses, making a significant contribution and driving economic growth in Quang Ngai. Therefore, accurately identifying the difficulties and obstacles facing the export industry in order to find solutions is essential in the current situation.
Text and photos: THANH NHI
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