Firmly open the economy

VCN – Closing 2021 with turbulence and the import-export turnover hitting US$668.5 billion, entering 2022, import and export of goods are forecasted to continue to have high growth opportunities, making an important contribution to economic recovery. Also, making effective use of Free Trade Agreements (FTAs) has been and will be an important driving force for imports and exports.
illustration image
illustration image

Many opportunities to accelerate exports

In the last days of 2021, a year of many changes and difficulties not only for Vietnamese businesses but also worldwide, has passed. The results obtained do not fully describe the hardships, the breakthrough transformations, and the concerns of "finding opportunities in danger" of each business and each industry.

For example, with the textile industry, Mr. Cao Huu Hieu, General Director of Vietnam Textile and Garment Group (Vinatex), said: "In 2021, there was a time when it seemed that we had fallen into despair."

Difficulties, especially for businesses in the southern provinces, when they have to apply social distancing, lead to the production chain being almost broken. Therefore, the result of reaching the figure of US$39 billion in export turnover in 2021 (up 11.2% compared to 2020 and up 0.3% compared to 2019) is considered a miracle.

Similarly, in the seafood industry, talking to Customs News, the Director General of Fisheries (MARD) Tran Dinh Luan said: "In 2021, the seafood industry had escaped spectacularly".

By the end of October 2021, the whole industry forecast that the whole year's exports would reach about US$8.4 - 8.6 billion instead of the final result of US$8.89 billion. However, in the last months of the year, the situation improved markedly. Especially, in December 2021 alone, seafood export value reached US$900 million.

Continuing the growth momentum, Vietnam's exports of many important commodities in 2022 are seen as having many prospects, although difficulties continue.

For the textile and garment industry, Mr. Truong Van Cam, Vice President and General Secretary of the Vietnam Textile and Apparel Association (Vitas), said that, up to now, many enterprises in the industry have had export orders until April and May 2022. In the most positive scenario, the pandemic is basically controlled in the first quarter of 2022, textile and garment exports for the whole year can reach about US$41.5 – US$42.5 billion.

Similarly, despite identifying many difficulties, the seafood industry also sets an export target of US$8.9 billion in 2022. The leader of the General Department of Fisheries said that the world economy would grow again after the vaccination strategy for the whole population was implemented, the Covid-19 pandemic is under control. At the same time, Vietnam had the advantage of the incentives of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTTP) and the Vietnam-EU FTA (EVFTA), which are advantages for exports in the future.

Looking back at the whole import-export landscape in 2021 to make a judgment for 2022, besides the impressive numbers, Mr. Tran Thanh Hai, Deputy Director of the Import-Export Department (Ministry of Industry and Trade), said export products of Vietnam were gradually diversifying, becoming richer in types and models.

Some products had a large market share and high position, meeting consumer tastes in the target market. Domestic enterprises were also focusing on investing in the processing and manufacturing industry and gradually shifting to products with added value and high technology content. "With encouraging results achieved, exports would continue to be the main growth engine for Vietnam's economy in 2022," the leader of the Import-Export Department said.

According to economic expert Can Van Luc, in the context that Vietnam has partly controlled the pandemic, it has contributed to a better recovery from major trading partners such as the United States, China, EU, ASEAN. It is forecast that in 2022, Vietnam's total import-export turnover might grow by 13-15%.

Looking at 2022, Asia could witness a remarkable export recovery and Vietnam was the country that continues to take advantage of opportunities to accelerate exports. Andrew Jeffries, country director of the Asian Development Bank (ADB) in Vietnam, said: "Vietnamese enterprises needed to quickly seize this opportunity to boost exports in 2022, improved the quality of goods to penetrate deeply into many large markets."

Thrust from FTAs

In 2021, contributing to the result of US$668.5 billion, import and export played an important role in enforcement, making good use of incentives from FTAs.

Until now, Vietnam has signed 15 FTAs, both bilateral and multilateral, including new generation FTAs ​​such as CPTPP, EVFTA, Vietnam-UK FTA (UKVFTA). Tran Quoc Khanh said: "The successful negotiation and signing of many FTAs ​​with leading important trading partners had helped Vietnam's import-export turnover grow strongly.”

Mr. Tran Thanh Hai said that after three years of implementing the CPTPP and more than a year of implementing the EVFTA, there had been very positive impacts on Vietnam's goods export activities, especially from markets where Vietnam's goods are exported but Vietnam has never signed an FTA. For example, thanks to the CPTPP, goods exports to Canada, Mexico and Peru all had growth rates of 25-30%/year.

With the EU, thanks to EVFTA, even though Vietnam was severely affected by the 4th outbreak of the pandemic in the southern key export region, in the first 11 months of 2021, two-way trade between Vietnam and the EU still reached US$51.3 billion, up 13.8% over the same period in 2020.

Vietnam witnessed a trade surplus of US$20.6 billion to the EU, up 9.8% compared to the same period last year. The Ministry of Industry and Trade forecasts that in 2022, Vietnam's exports to the EU market would grow more positively than in 2021 because Vietnamese enterprises are increasingly taking advantage of incentives from the EVFTA.

Besides the new generation FTAs ​​that are being implemented, creating a good impetus for Vietnam's import and export such as CPTPP, EVFTA, it would be a mistake if it was not to mention the Comprehensive Economic Partnership Agreement (RCEP) officially entered into force since January 1, 2022.

This new generation FTA was expected to open more opportunities for Vietnamese enterprises to boost exports, create a stable and long-term export market for ASEAN countries in general and Vietnam in particular, and contribute to promoting the implementation of Vietnam’s policy on building an export-oriented production base.

From a product perspective, making good use of the FTA and continuing to expect this push in 2022 can typically include the wood industry.

Talking to Customs News, Mr. Bui Chinh Nghia, Deputy Director of the General Department of Forestry (MARD), said: "In 2021, processing enterprises took advantage of the opportunity to develop and expand the market in the context of the US-China trade war and opportunities from FTAs ​​that Vietnam participates in. The export value of wood and forest products to some traditional markets kept a high growth rate such as China at 23.7%; United States was 21.4%; EU was 14.4%; Japan was 6.7%; Korea was 5.7%. In 2022, Vietnam's ratification and implementation according to the roadmap of bilateral and multilateral FTAs ​​such as CPTPP, EVFTA, and RCEP would continue to be significant advantages for exports.”

With a "leading" enterprise in the textile industry like Vinatex, in order to be able to meet the rules of origin and make the best use of opportunities from FTAs ​​in 2022, this unit has prepared quite carefully. “In 2021, Vinatex had expanded its investment in building new factories that were put into operation for the Yarn Factory 3 (Phu Bai Yarn Joint Stock Company) with a scale of 32,000 spindles from June 2021; Yarn Factory 2 (Vinatex Phu Hung Joint Stock Company) with a scale of 22,800 spindles which was put into operation from October 2021. This was the basis for Vinatex to improve its competitiveness in order to meet the requirements of rules of origin of FTAs ​​such as CPTPP, EVFTA,” Hieu said.

Affirming that Vietnam was one of the countries making good use of FTAs, Trinh Minh Anh, Chief of the Office of the Inter-sectoral Steering Committee for International Economic Integration, said that in the future, management agencies should focus on solutions to strengthen and expand export markets, take full advantage of FTAs which are ​​already in effect, guide enterprises to focus on small and niche markets; strengthen the management of import and export of a number of strategic products.

By Thanh Nguyễn/Thanh Thuy

Related News

Fiscal policy - A pivotal milestone in promoting economic recovery and growth

Fiscal policy - A pivotal milestone in promoting economic recovery and growth

VCN - On the occasion of welcoming the Year of the Dragon 2024, Minister of Finance Hồ Đức Phớc shared with Customs Magazine about the outstanding results of the Finance sector in 2023 as well as the major orientations of the sector for 2024.
Remove bottlenecks in public investment to boost economic recovery

Remove bottlenecks in public investment to boost economic recovery

VCN - At the seminar "Public investment: Bottlenecks and solutions from the perspective of the State audit," held on October 18, many limitations in public investment as well as solutions to remove bottlenecks to strengthen the pillar of public investment were proposed by experts.
Understanding commitments to make effective use of tariff preferences to implement FTAs

Understanding commitments to make effective use of tariff preferences to implement FTAs

VCN - Workshop on Effective implementation of commitments on preferential export tax and special preferential import tax of Vietnam in implementing free trade agreements (FTAs) has just been held by the Department of International Cooperation (Ministry of Finance). According to representatives of management agencies and enterprises, for the implementation of tariff commitments to implement FTAs effectively, enterprises need to learn about tariff commitments and take appropriate preparatory actions actively.
Fiscal policy helps economic recovery and development

Fiscal policy helps economic recovery and development

VCN - Continuing to implement fiscal policy solutions to support economic recovery and development, in 2023, the Ministry of Finance has been advising on mechanisms and policies to support people and businesses. In the context of difficulties surrounding the economy, this is considered a driving force to help businesses have more strength to overcome difficulties, recover and develop.

Latest News

Import turnover of 19 commodity groups grows over 20%

Import turnover of 19 commodity groups grows over 20%

VCN – Most of major import commodity groups have high growth turnover compared to the same period in 2023.
Vietnam owns significant advantages in attracting FDI

Vietnam owns significant advantages in attracting FDI

VCN - In an interview with Customs News, Dr. Vo Tri Thanh, Director of the Institute of Branding and Competition Strategy, believed that the global minimum tax could affect global foreign direct investment (FDI) flows and the FDI attraction policies of each country. However, "in crisis lies opportunity", Vietnam still has significant advantages in attracting FDI.
Nearly 7,000 tariff lines of AKFTA product specific rules need to be transposed

Nearly 7,000 tariff lines of AKFTA product specific rules need to be transposed

VCN - ASEAN member states and the Republic of Korea (RoK) reached a consensus on the transposition of ASEAN-RoK Free Trade Agreement (AKFTA) Product Specific Rules from the Harmonised System Codes HS 2017 to HS 2022.
Vietnam needs to cook up stronger global rice brand

Vietnam needs to cook up stronger global rice brand

Although Vietnamese rice has a foothold in several fastidious markets, there is a long way to go to make it a stronger brand globally, according to insiders.

More News

Vietnam advised to fully tap CPTPP to boost exports to Canada

Vietnam advised to fully tap CPTPP to boost exports to Canada

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has opened up numerous opportunities for Vietnam and Canada to boost two-way trade, however, tax initiatives under the trade pact have not been tapped to the fullest extent by the Vietnamese exporters, said Vietnamese Trade Counsellor in Canada Tran Thu Quynh.
ASEAN, RoK agree on transposition of AKFTA product specific rules

ASEAN, RoK agree on transposition of AKFTA product specific rules

ASEAN member states and the Republic of Korea (RoK) have reached a consensus on the transposition of ASEAN-RoK Free Trade Agreement (AKFTA) Product Specific Rules from the Harmonised System Codes HS 2017 to HS 2022.
Opportunities for digital technology businesses to go global

Opportunities for digital technology businesses to go global

Finding solutions and directions to promote and develop Vietnamese digital technology enterprises is an important task, which will promote the stability and sustainability of the country's economy, heard a recent conference.
Vietnam, China eye stronger border trade

Vietnam, China eye stronger border trade

Border provinces of Vietnam and China should continue close coordination and enhance trade promotion between the two sides, stressed the recent talks between the management boards of the economic zone of the northern province of Ha Giang and the Malypo border economic cooperation zone of China’s Yunnan province.
Improve competitiveness and sustainable development of the seafood industry

Improve competitiveness and sustainable development of the seafood industry

VCN - In early 2024, seafood exports have prospered. This is the driving force that helps seafood businesses hope for a stronger recovery this year. Ms. Nguyen Thi Thu Sac, Chairwoman of the Vietnam Association of Seafood Exporters and Producers (VASEP) shared with Customs Magazine.
Business environment reform needs further promotion: expert

Business environment reform needs further promotion: expert

Resolution 02 issued by the Government creates pressure for the ministries, sectors and localities to make changes for the business community as well as the socio-economic development.
Singapore is the largest foreign investor in VN in Q1

Singapore is the largest foreign investor in VN in Q1

The disbursed FDI rose by 7.1 per cent in the first quarter to reach $4.63 billion, a signal that the disbursement will continue the positive trend, the agency said.
Thai Binh boosts investment, trade cooperation with Germany

Thai Binh boosts investment, trade cooperation with Germany

A delegation from the northern province of Thai Binh, led by Deputy Secretary of the provincial Party Committee Nguyen Khac Than, visited several localities and business organisations in Germany from March 25 to 27, in a bid to enhance trade cooperation with and attract direct investment from the European nation.
Lifting obstacles to develop industrial parks

Lifting obstacles to develop industrial parks

VCN - Attracting investment and developing industrial zones (IZs) and economic zones (EZs) is one of the important contents to implement the policy of developing a multi-component, open, attract investment and resources from all economic sectors to develop the country. In addition to the results achieved, there still limitations that need to be removed to draw investments to develop industrial parks and economic zones, including financial problems for industrial parks.
Read More

Your care

Latest Most read
Import turnover of 19 commodity groups grows over 20%

Import turnover of 19 commodity groups grows over 20%

VCN - According to the General Department of Vietnam Customs, in the first two months of 2024, the total import turnover of the country increased by 17.1% year-on-year to US$ 54.21 billion. The result is only lower than the record increase of the same per
Vietnam owns significant advantages in attracting FDI

Vietnam owns significant advantages in attracting FDI

VCN - Vietnam's economy has passed the most dangerous and difficult period and is now more stable. Inflation, exchange rates, and interest rates have decreased, bank liquidity has stabilized, and the stock and bond markets have experienced shocks and begu
Nearly 7,000 tariff lines of AKFTA product specific rules need to be transposed

Nearly 7,000 tariff lines of AKFTA product specific rules need to be transposed

ASEAN member states and the Republic of Korea (RoK) reached a consensus on the transposition of ASEAN-RoK Free Trade Agreement (AKFTA) Product Specific Rules
Vietnam needs to cook up stronger global rice brand

Vietnam needs to cook up stronger global rice brand

Although Vietnamese rice has a foothold in several fastidious markets, there is a long way to go to make it a stronger brand globally, according to insiders.
Vietnam advised to fully tap CPTPP to boost exports to Canada

Vietnam advised to fully tap CPTPP to boost exports to Canada

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has opened up numerous opportunities for Vietnam and Canada to boost two-way trade, however, tax initiatives under the trade pact have not been tapped to the fullest extent by the Vietnamese exporters, said Vietnamese Trade Counsellor in Canada Tran Thu Quynh.
Mobile Version