Challenges and opportunities for exports in 2023 and next year

This figure accurately reflects the difficult situation faced in domestic production when the processing and manufacturing industry, which always accounts for 85% to more than 90% of the country’s total export turnover, has also declined sharply since late 2022 and early this year.

Amid key export products heavily depending on large markets such as the United States and the EU, these markets are strongly affected by inflationary pressure leading to tightened spending, reduced aggregate demand, and reduced imports of non-essential consumer goods.

Export of agricultural and food products hits new record

Trade promotion, connection with Vietnamese Trade Offices and Trade Counselors abroad to seek opportunities for market expansion, and making the most of opportunities from bilateral and multilateral free trade agreements (FTAs) to bolster exports are a significant bright spot this year, with positive results being recorded in this year's export activities.

Although agricultural and food product exports, including rice exports to the EU market, are in small volumes, the nation has exported high-quality rice, especially fragrant rice with high value.

Not to mention many importing countries have set high requirements for sustainable development and environmentally friendly production, therefore Vietnamese products must compete more fiercely with exporting countries that have a similar goods structure.
From the actual results of the nation’s fruit and vegetable exports after 11 months, the Vietnam Fruit and Vegetable Association forecasts that fruit and vegetable exports this year are expected to reach US$5.6 billion, a record high for this industry.

Dang Phuc Nguyen, general secretary of the Vietnam Fruit and Vegetable Association, said, "The Vietnamese State, Government and Ministry of Agriculture, Ministry of Industry and Trade have negotiated on market opening, and signed many agreements and protocols with China as well as other countries to create favorable conditions for Vietnamese agricultural products to be widely consumed around the world. In addition, Vietnamese farmers and businesses are increasingly receive instructions on how to grow crops that meet international standards, requirements and tastes of importing countries."

According to the Ministry of Industry and Trade's report on the situation of industrial production and trade activities over the past 11 months, total import and export turnover reached more than US$619 billion, down 8.3% on-year, in which export turnover was estimated to be at US$322.5 billion, down 5.9% over last year’s corresponding period.

With a recovery occurring in the final months of the year, the decline in exports for the whole year has narrowed quite a lot compared to the 12% decline seen in the first half of the year.

A notable point in import-export activities this year is that the trade balance of goods recorded a large trade surplus.

Although exports last month improved compared to the previous month and maintained an export turnover of more than US$30 billion in the final months of the year, the trade surplus continued to increase, bringing the 11-month trade balance to nearly US$26 billion.

Export and import challenges for 2024

The Ministry of Industry and Trade, the state management agency in the field of industry and commerce, determined that this is also a big challenge ahead in 2024 when the conditions for "reducing carbon footprint" from import markets becomes more and more strict. Green export promotion is therefore continuously the topic of trade promotion programs at the end of 2022 and into this year in order to find a more sustainable and more effective direction.

As a bridge for businesses to enter export markets, Vu Ba Phu, director of the Trade Promotion Agency, said that green transformation is an inevitable trend, meaning that the Ministry of Industry and Trade has been focusing on three major tasks that must be done to support businesses, industries, and localities in 2024 and over the following years.

Vu Ba Phu emphasized that along with improving capacity to meet new standards, relevant ministries and agencies will have to quickly supplement and complete the legal framework, as well as introducing standards and regulations on green transformation in trade promotion.

According to trade experts, in order to appropriately respond to green standards in imports and exports moving forward, businesses need to diversify trading partners, assess risks, make plans for various scenarios, outline carbon reduction strategies, and participate in carbon offset projects.

It is also essential for local business to invest in innovation and technology and engage in industrial co-operation initiatives. Only then will export activities develop sustainably in the time ahead.

Source:VOV.vn