Logistics costs keep challenging exports in the second quarter

VCN - According to Mr. Tran Thanh Hai, Deputy Director of the Import-Export Department (Ministry of Industry and Trade), besides favorable factors, exporting goods will face certain difficulties. Typically, the Russia-Ukraine conflict is hurting the supply of production materials; transportation and logistics costs keep escalating over the past two years with no sign of "cooling down".
Mr. Tran Thanh Hai, Deputy Director of the Import-Export Department (Ministry of Industry and Trade)
Mr. Tran Thanh Hai, Deputy Director of the Import-Export Department (Ministry of Industry and Trade)

How do you evaluate the import and export results in the first three months of this year?

In the first three months of the year, the total import-export turnover made a record of US$176 billion, a very high growth rate, up 14.4% over the same period last year, of which exports alone grew 12.9%.

In particular, groups of agricultural products recorded relatively high export growth of about 18-19%, including special products such as coffee, rice and seafood, the growth rate was even higher from 38% to nearly 50%.

These are generally very positive signs for import-export activities.

It is commonly believed that Vietnam's goods export still has many growth opportunities, especially from the implementation of Free Trade Agreements (FTAs). What is your view?

I also think that Vietnam is making use of recent FTAs, especially large-scale FTAs ​​with a deep level of commitment such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Vietnam-EU FTA (EVFTA), the Vietnam FTA -The United Kingdom (UKVFTA), most recently the Regional Comprehensive Economic Partnership (RCEP).

These are all FTAs ​​with very large-scale trading partners of Vietnam, which in fact, has had a significant effect.

For example, in the CPTPP, greenhorns signing FTAs ​​with Vietnam such as Peru, Mexico, etc., have reached export growth from 25-35% which reveals very clearly the opportunities for businesses.

Meanwhile, thanks to the efficiency of the RCEP from January 1, 2022 with deeper commitments as well as clearer facilitation, businesses also have the opportunity to boost exports to these markets. In the RCEP bloc the integration of countries such as China, Korea, and Japan also provides raw materials for Vietnam. The RCEP agreement will create rotation, enabling Vietnam to better connect the supply chains of both output and input.

Besides opportunities, what are the difficulties faced by Vietnam's export goods?

The Covid-19 pandemic keeps negatively impacting Vietnam's economic development in general.

Despite recent positive signs and safe adaptation to restore production in Vietnam, the recent outbreaks of the disease in other markets especially in China have also impacted Vietnam. For example, China's current zero-Covid policy, which is ready to blockade an entire city or a production center in case of a Covid-19 case will hurt Vietnamese enterprises because of the independence of raw materials of Vietnam to such markets.

In addition, in terms of transportation and logistics, in the past two years, the impact of the pandemic has pushed up sea freight rates, so far there has been no sign of "cooling down". In China, when the disease spreads, it is possible that China's ports will also be congested, which will further prolong the transit time, keeping freight rates high.

In addition, the instability of the Russia-Ukraine conflict also makes it a double-whammy for Vietnam. Despite the modest trade turnover between Vietnam and Russia and Ukraine, these two countries provide basic raw materials, agricultural products such as wheat, raw materials such as coal, fertilizers, and other raw materials, metal products.

The Russian-Ukrainian conflict-hit prices in the market, rising input prices of raw materials in general.

It must also be added that the Russia-Ukraine conflict especially affects crude oil and petroleum products, pushing crude oil prices very high because Russia is the world's leading supplier of crude oil and gas. That affects the supply chain in general, including countries that import fuel and crude oil from Russia, pushing up prices in those markets, increasing pressure on the world market and at the same time escalating pressures on Vietnam's manufacturing activities. The most seriously hit ones are iron and steel, metals, chemicals and fertilizers.

In 2022, the Ministry of Industry and Trade aims to increase exports by 6-8% compared to 2021, reaching about US$363 billion; maintain the trade balance at the level of trade surplus. In your opinion, what are the key solutions to achieve the set goals?

Vietnam is making good use of overcoming the challenging period. At the same time, Vietnam also has good export growth momentum maintained over the years. In the future, taking advantage of FTAs is still the biggest concern of enterprises, associations, and state management agencies, which must work together to exploit and make good use of them.

Thank you very much!

Mr. Ngo Sy Hoai, Vice President and General Secretary of the Vietnam Timber and Forest Products Association (VIFORES): Requesting early warning of trade remedy measure

Domestic wood processing and exporting enterprises want Vietnamese Trade Offices abroad to convey the message that Vietnam is the world's leading wood processing and exporting center; resolutely develop a sustainable wood industry with clean and legal raw materials. In addition, it is suggested that the Vietnam Trade Office in the US warns early about trade remedies in this market so that domestic enterprises can prepare documents and effectively deal with investigation measures.

Mr. Le Hoang Tai, Deputy Director of Trade Promotion Department (Ministry of Industry and Trade):

Many activities to support exports in 2022

In 2022, the Trade Promotion Department has and will organize many activities to support the export of Vietnamese goods to foreign markets.

In which, the National Program on Trade Promotion spends 80.41% of the budget on export promotion activities. Activities carried out in both face-to-face and online forms mainly focus on organizing and participating in international fairs and exhibitions abroad; organizing international fairs and exhibitions in Vietnam for export products; setting trade delegations abroad.

In order to make trade promotion more effective, the Department wishes to receive closer cooperation from the Vietnamese Trade Offices abroad in providing updated information on the host country's market, technical barriers, early warning of the risk of anti-dumping lawsuits, preferential programs on investment and trade that the host government may offer to Vietnam. At the same time, it is necessary to strengthen the exchange of information on the import and export needs of Vietnamese and foreign enterprises.

Uyển Như (recorded)

By Đức Quang (recorded)/ Thu Phuong

Related News

Vietnamese goods are becoming more and more "qualified"!

Vietnamese goods are becoming more and more "qualified"!

VCN - To conquer Vietnamese consumers and be ready to export to demanding markets, many businesses have "joined hands" to build sustainable supply chains and improve the quality of Vietnamese goods.
Wood processing enterprises strive to increase the proportion of individually designed goods

Wood processing enterprises strive to increase the proportion of individually designed goods

VCN - Many wood and furniture processing enterprises are promoting investment in design activities, helping to increase the proportion of individually designed products (ODM) in exports, thereby affirming the industry's capacity Vietnamese wood in segments with higher added value.
Vietnam experiences a trade surplus of over US$11 billion in two months

Vietnam experiences a trade surplus of over US$11 billion in two months

VCN - The trade turnover between Vietnam and China reach over US$27 billion only in two months
Quang Ninh Customs: Striving to promote imports and exports

Quang Ninh Customs: Striving to promote imports and exports

VCN - Quang Ninh Customs Department is deploying many solutions to attract and keep enterprises as well as promote imports and exports right from the beginning of 2024 including arranging customs officers to handle procedures outside working hours; and proactively meet and remove difficulties for enterprises.

Latest News

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.

More News

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.
Unlock capital flows and create favorable conditions for investors

Unlock capital flows and create favorable conditions for investors

VCN - Talking with the press, Dr. Ngo Cong Thanh (Photo), Provisional Executive Committee member of the Vietnam Industrial Park Finance Association (VIPFA), said that it is necessary to open up capital flows and create conditions for investors to access key factors. Facilitate production and business factors and innovate investment promotion activities to more effectively develop industrial parks.
More than 300 businesses, manufacturers to attend VGMF 2024

More than 300 businesses, manufacturers to attend VGMF 2024

More than 300 domestic and foreign businesses and manufacturers will attend the Vietnam Global Manufacturing Forum 2024 (VGMF2024) to explore investment and business cooperation opportunities.
Connecting with FDI firms helps boost wood exports: insiders

Connecting with FDI firms helps boost wood exports: insiders

Strengthening linkages and cooperation between foreign-invested and domestic enterprises will contribute to promoting the sustainable development of the Vietnamese wood industry, according to insiders.
Doosan Vina exports nearly 2,000 tonnes of modules to US

Doosan Vina exports nearly 2,000 tonnes of modules to US

The Doosan Enerbility Vietnam (Doosan Vina) specialising in heavy industries announced on March 26 that it has just exported a batch of nine modules weighing nearly 2,000 tonnes to the Golden Triangle Polymers company in Texas, the US.
Take advantage of shrimp export opportunities right from early year months

Take advantage of shrimp export opportunities right from early year months

VCN - As the main export product of Vietnamese seafood, shrimp processing enterprises are taking advantage of export acceleration since the beginning of the year.
Read More

Your care

Latest Most read
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

In early 2024, seafood exports have prospered. This is the driving force that helps seafood businesses hope for a stronger recovery this year.
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.
Mobile Version