Impressive growth of industries contributes to the tune of US$600 billion in import-export turnover

	Import and export of key southern provinces still records impressive growth
	Domestic funds report impressive growth
	Vietnamese import-export activities record impressive growth during 2020

Iron and steel are some of the typical commodities that have made a great contribution to the overall export growth this year. Photo: N.Thanh

Agricultural products, iron and steel reach the targets

According to the latest data of the General Department of Customs (the Ministry of Finance), in the first 11 months of 2021 goods exports reached US$301.73 billion. This is an increase of 18.3%. Compared to the same period last year, import of goods reached US$300.27 billion, up by 27.9% compared to the same period last year. Thus, the total import-export turnover of Vietnam has officially exceeded US$600 billion.

The Ministry of Industry and Trade stated that, “in the first 11 months of 2021, the group of processed industrial products continues to play an important role, making the main contribution to export growth, with a total export turnover of US$257.95 billion, accounting for 86.1% of total export turnover, up by 18.8% compared to the same period last year. This result is mainly due to the resumption of operations in the southern provinces, after more than 3 months of shut downs to ensure the prevention of the Covid-19 pandemic," said a representative of the Ministry of Industry and Trade.

In the group of processed industrial products, items that make a big contribution to export growth, indicated by the Ministry of Industry and Trade, include: iron and steel of all kinds, with an estimated export turnover of US$10.8 billion, up by 129.8%. Footwear of all kinds, estimated at US$15.54 billion, up by 3.3%. Computers, electronic products and components were estimated at US$45.05 billion, up by 11.9%.

According to Dinh Quoc Thai, General Secretary of the Vietnam Steel Association, so far, Vietnam has signed and implemented many free trade agreements (FTAs). This creates favorable conditions for enterprises to expand their markets and promote export of goods. Not only in 2021, but also in the 2016-2021 period, Vietnam's steel exports have achieved promising results. The average export growth of steel and steel products (crude steel, ferro) is about 20% per year, in which the export of finished steel products alone has grown by about 12% per year.

Besides the group of processed industrial products, the group of agricultural, forestry and fishery products also play an important role in this year's import-export picture. Information from the Ministry of Agriculture and Rural Development shows that, in the first 11 months of 2021, the total import-export turnover of agriculture, forestry and fishery is estimated at nearly US$82.67 billion, up by 24.7% compared to the same period last year. Of which, export is estimated at nearly US$43.5 billion, up by 14.2%. One quite special point is that, at the beginning of 2021, the whole industry only set an export target of about US$42 billion, which then raised to US$44 billion.

However, speaking at the 6th National Farmers Forum, Deputy Minister of Agriculture and Rural Development, Phung Duc Tien, excitedly shared, “with the efforts of the whole system, from state management agencies to the business community, this year's agricultural, forestry and fishery exports and industries may even "reach the target" of about US$47 billion. This number is even more impressive in the difficult context of this year.”

Import and export can reach US$645 billion

According to the Ministry of Industry and Trade, Vietnam's export activities have advantages when FTAs are effectively exploited and the market demand increases at the year-end shopping season.

Tran Thanh Hai, Deputy Director of the Import-Export Department at the Ministry of Industry and Trade said that, “since the beginning of the year, enterprises have overcome many difficulties to maintain and recover production. In particular, industries with strengths such as textiles and garments, leather and footwear, despite being heavily affected by the pandemic, still achieved their targets earlier than expected. From now until the end of the year, businesses in these industries can regain the same growth rate as before the pandemic. Traditional industries with export strengths such as phones, electronics, machinery and other components can also achieve export growth of about 15 - 25% this year.

It is forecasted that for the whole year of 2021, total import-export turnover will reach about US$640-645 billion, whilst the trade balance will remain at a slight trade surplus. This is a great achievement because in 2021, Vietnam will be heavily affected by the Covid-19 pandemic with the Delta variant. The Covid-19 pandemic has directly hit the region which is the driving force of commodity production in both the South and the North”, said Tran Thanh Hai.

To promote exports in the near future, the Ministry of Industry and Trade will continue to focus on solutions to strengthen and expand export markets, taking full advantage of the FTAs that have taken effect, guide enterprises to focus on small and niche markets and work with the Chinese Embassy to propose facilitating customs clearance and export of goods through the northern border gate.

The representative of the Ministry of Industry and Trade also stated the importance of continuing to promote the simplification of administrative procedures and of focusing on administrative procedures in the field of import and export under the National Single Window and ASEAN Single Window. This should create favorable conditions for associations and enterprises to participate in import-export activities.