Analysts: New markets and product diversification needed to maintain exports
Analysts: New markets and product diversification needed to maintain exports
Exports plunge 12.1% in the first half as global uncertainties linger.
Amid difficulties in exports and tumbling order numbers, the diversification of goods, opening of new export markets, and building of trademarks for products are considered key, urgent measures to maintain export growth, according to analysts.
Figures from the Ministry of Industry and Trade show that export revenue in the first half of this year was down 12.1 per cent year-on-year to $164.45 billion.
In particular, exports to main markets fell year-on-year, such as to the US, down 22.6 per cent; to the EU down 10.1 per cent; to China down 2.2 per cent; to South Korea down 10.2 per cent; to Japan down 3.3 per cent; and to ASEAN down 8.7 per cent.
Key export products also witnessed sharp declines, including garments and textiles, by 15.3 per cent; footwear by 15.2 per cent; wood and wooden products by 17.9 per cent; and fertilizers by 45.6 per cent.
The declines are the result of high inflation and tightened monetary policies, and slow recovery in the global economy and the collapse of a number of global banks that has led to lower consumption demand, according to the ministry.
Meanwhile, businesses have faced difficulties in expanding and diversifying markets due to high prices of production materials and logistics services as well as rising interest rates.
Forecasting the export picture over the remaining months of the year, Deputy Minister of Industry and Trade Do Thang Hai said businesses will continue to face challenges. Uncertainties in the global economy are at their highest for many years, affecting the stability of Vietnam’s macro-economy and growth prospects, especially as the economy has a high degree of trade openness and depends greatly on market diversification and opportunities from free trade agreements.
The risks of economic recession, inflation, and high-interest rates are forecast to remain high, resulting in tumbling consumption in many countries around the world, including Vietnam’s major trade partners.
Source: VnEconomy
18/7/2023