Exporting goods: Need to improve internal strength

11 months 2024, goods export growth double digits. FTAs actively support businesses. Increasing internal strength, businesses will increase turnover.

Goods exports grow by double digits

According to the report of Ministry of Industry and Trade Regarding the implementation of Resolution No. 01/NQ-CP, the situation of industrial production and trade activities in November and 11 months of 2024, it is said that the preliminary export turnover of goods in November 2024 reached 33.73 billion USD, down 5.3% compared to the previous month.

Preliminary export turnover of goods reached 369.93 billion USD, up 14.4% over the same period last year. Photo. MH

In the first 11 months of 2024, the preliminary export turnover of goods reached 369.93 billion USD, an increase of 14.4% over the same period last year, a high increase compared to many countries in the ASEAN region and Asia.

Of which, the domestic economic sector reached 103.88 billion USD, up 20%, accounting for 28.1% of total export turnover; the foreign-invested sector (including crude oil) reached 266.05 billion USD, up 12.4%, accounting for 71.9%.

That shows that the export of the domestic economic sector continues to grow higher than the FDI sector (20% compared to 12.4%) and the proportion of export turnover of this sector in the total export turnover of the country is higher than the same period last year (28% compared to 26.8%), which are positive signals in the export activities of this sector.

In the textile and garment sector, Mr. Tran Nhu Tung - Vice President of Vietnam Textile and Apparel Association, Chairman of the Board of Directors of Thanh Cong Textile - Investment - Trading Joint Stock Company - said that in 2024, textile industry expected to have many improvements, with export turnover estimated at 44 billion USD, up 10% over last year.

However, this growth has not really broken through, because in 2023, textile and garment export turnover reached a low level. The increase in 2024 only brought the total textile and garment export turnover back to the same level as in 2022.

It is forecasted that by 2025, the textile and garment industry will grow by about 10%, with an estimated export turnover of 47-48 billion USD. The results achieved in 2024, along with changes in the policies of former US President Donald Trump, show that, in theory, Vietnam's textile and garment exports can continue to grow.

“Currently, Vietnam ranks second only to China in textile exports to the US. When the US imposes higher tariffs on textiles imported from China, Vietnamese textiles will have more advantages,” said Mr. Tran Nhu Tung.

In the field of agriculture, forestry and fishery, Mr. Do Ha Nam - Vice President of the Vietnam Coffee - Cocoa Association, Vice President of the Vietnam Food Association, Chairman of the Board of Directors and General Director of Intimex Group Joint Stock Company - informed that Vietnam's agricultural sector currently ranks 15th in the world in terms of exports, with many industries holding leading positions such as pepper, coffee and rice. Intimex Group exports agricultural products from 1.3 to 1.6 billion USD each year.

In the past, when mentioning rice, people thought of poor farmers. A few years ago, farmers only dreamed of selling fresh rice for 4,000 VND/kg, now it has reached 8,000 VND/kg. Rice acreage and productivity have not increased, but export This year could reach a record 9 million tons. Vietnamese farmers are now growing rice according to market demand.

In the coffee industry, the price of Robusta coffee has never been higher than it is now. The reason is that the whole world uses Vietnamese Robusta coffee. This year, Vietnamese farmers regulate the market, businesses only provide services. “In 2024, coffee prices will continue to increase, peaking at VND130,000/kg, while the cost is less than VND40,000/kg. Dak Lak farmers are now very rich,” Mr. Do Ha Nam informed.

Commenting on the export picture of goods in the first 11 months of 2024, Dr. Can Van Luc - Member of the National Financial and Monetary Policy Advisory Council - informed that import and export grew positively, with exports increasing by about 14 - 15% compared to last year. Among Vietnam's 6 largest trading partners, China, the US, ASEAN, South Korea, the EU, and Japan account for about 77% of Vietnam's total import and export turnover. This year's export markets all recorded very good growth. Of which, exports to the US were relatively good, at about 23%; to the EU and other countries were also positive.

Need to improve the internal strength of domestic enterprises

In addition to the achieved results, there are still shortcomings in the export of goods. Dr. Tran Du Lich - member of the National Financial and Monetary Policy Advisory Council - acknowledged that we are proud of our high export turnover, especially in the electronics, mobile, semiconductor chip industries... However, the value that Vietnam actually earns is still very modest.

Many items exported to the US have very high value but the portion that Vietnam benefits from is very small. For example, in the field of semiconductor chips produced in Vietnam, we are mainly involved in the packaging stage with a value of only about 3.5% of the total value. The same is true for mobile phones. This shows that increasing the localization rate and adding value in the supply chain in Vietnam is an urgent task.

Mr. Do Ngoc Hung - Commercial Counselor, Head of the Vietnam Trade Office in the United States - informed that when Mr. Donald Trump takes office as President, President Donald Trump's new policies will affect the world economy and Vietnam. "He expressed his desire to consider fair taxes with partners and reduce the trade deficit with the United States. It is predicted that the world's supply chain will shift when the United States changes its policies, and Vietnam can benefit from this shift," Mr. Do Ngoc Hung said.

Vietnam ranks third after China and Mexico, causing the US trade deficit, so the urgent issue of balancing trade will be focused on. Vietnam can increase imports of wood, chemicals, and high technology.

Also according to Mr. Do Ngoc Hung, in the near future, USA Trade defense investigations may increase, so businesses need to pay attention to the origin of goods. At the same time, it is necessary to reduce costs to increase competitiveness. The United States also plans to impose a 10% import tax, which if applied evenly will not have much impact on Vietnamese businesses. Currently, some countries are using law firms with knowledge of "policy lobbying" to be able to lobby for policies and prevent policy risks from a distance.

In order for businesses to make the most of export opportunities, from an expert perspective, Dr. Can Van Luc believes that businesses need to grasp major trends such as: The dual development trend of "greening and digitalization", integrating ESG factors, sustainable development; anticipating technology trends, especially new technologies.

In addition, it is necessary to diversify markets, partners, supply chains, products - services, and feasible capital sources for green transformation, circular business, and participation in the carbon credit market. At the same time, take advantage of opportunities from new-generation free trade agreements (FTAs) and from upgrading Vietnam's relations with the United States, Japan, Australia, Malaysia, etc.

To accompany businesses, associations, and industries in exporting goods in the coming time, the Ministry of Industry and Trade said that it will focus on effectively exploiting the FTAs that have come into effect and signed, implementing new agreements to expand and diversify markets, import and export goods, and supply chains. Strengthening the exploitation of neighboring markets with potential, strongly shifting to official exports associated with brand building, promoting sustainable exports.

Continue to innovate and improve the effectiveness of trade promotion work, accelerate the completion of the legal system to strengthen the trade defense regime towards protecting the domestic economy, businesses, and market in accordance with international commitments.

Continue to improve the effective use of trade defense tools to protect domestic production and effectively support Vietnam's export industries in effectively responding to foreign trade defense cases. At the same time, closely monitor and promptly and fully assess the impacts of US policy changes, especially after President Donald Trump takes office at the end of January 2025, to respond promptly and appropriately.

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