31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Trade - Service
Vietnam trade performance much dependent on Covid-19 situation
Hai Yen 11:28, 2021/08/17
Potential disruption of supply chains as a result of the pandemic is making it hard for local enterprises to fulfill their contractual obligation to partners.

Vietnam’s trade performance for the remainder of 2021 would be much dependent on the progress of the pandemic containment in the country, according to the Ministry of Industry and Trade (MoIT).

 Production at Garment 10 Company. Photo: Thanh Hai

Despite the current severe Covid-19 outbreak across the country, especially in Ho Chi Minh City and southern provinces/cities, Vietnam’s trade turnover in the first seven months of 2021 remained an improvement compared to the same period of last year.

For the January-July period, total trade turnover sharply rose by 30.2% year-on-year to US$373.3 billion, of which exports hit $185.3 billion, up 25.5%, and imports totaled $188 billion, or an increase of 35.3%.

According to the MoIT, there are 27 groups of export products with a revenue of over $1 billion, in turn accounting for 90.2% of total exports. Among them, phones and parts contributed the largest portion with $29.4 billion, or 15.8% of the total; followed by electronics, computers, and parts ($27.4 billion), machinery ($19.7 billion); textile and garment ($18.6 billion); and footwear ($12.1 billion).

Meanwhile, the US continued to be the largest export market for Vietnam’s products with a turnover of  $53.7 billion, while China and the EU made up the remaining two in the top three.

While the country recorded a trade deficit of $2.7 billion for the seven-month period, a stark contrast from a surplus of $8.7 billion in the same period of last year, Deputy Minister of Industry and Trade Do Thang Hai expected the situation to improve in the coming months as exports normally reach its peak in the last half of the year.

“Demand for Vietnam’s exports are set to surge in the final months of 2021, especially for electronics, machinery, wooden products, textile, and seafood,” said Hai.

Another key factor was an agreement between the State Bank of Vietnam and the US Department of the Treasury on Vietnam’s currency practices on July 24, prompting the US Trade Representative (USTR) to ensure that it would refrain from imposing trade remedies on Vietnam’s export products.

Thang, however, acknowledged that the pandemic situation remains a decisive factor for trade performance.

“Covid-19 situation is jeopardizing companies’ operation, which put them at risk of facing order cancellation from foreign buyers,” he added.

Sharing the view, economist Nguyen Tri Hieu told The Hanoi Times a potential disruption of supply chains as a result of the pandemic is making it hard for local enterprises to fulfill their contractual obligation to partners.

“It is imperative for Vietnam to diversify both import and export markets and avoid over-dependence on certain markets,” Hieu said.

In this regard, Director of the WTO Center and Integration under the Vietnam Chamber of Commerce and Industry (VCCI) Nguyen Thi Thu Trang called for local firms to better take advantage of the EU-Vietnam Free Trade Agreement (EVFTA) and other trade deals that the country is a part of to enhance their market penetration capabilities.

RELATED NEWS
TAG: Vietnam trade exports imports MOIT covid-19 phones electronics garment computers
Other news
22:13, 2022/13/05
Vietnam, S.Korea aim for a US$150 billion trade turnover by 2030
The Vietnamese Government for its part would create utmost conditions for South Korean companies to succeed in Vietnam and commit long-term presence in the country.
21:11, 2022/11/05
Experts look for ways to bolster tourism in North Central region
As major cities of Vietnam, Hanoi and HCMC will promote tourism in the northern and central regions of the country.
13:45, 2022/45/05
Vietnam eyes stock market’s upgrade to emerging status before 2025
The ministry has been in frequent contact with both MSCI and FTSE Russell to update new information and their requirements to finalize the legal framework or address shortcomings in the market.
11:42, 2022/42/05
Vietnam, Mexico seek to promote trade
Mexico considers Vietnam a strategic market in Asia-Pacific.
09:42, 2022/42/05
Hanoi takes solutions to spur night economy
Local authorities have requested tourism businesses and management agencies to restructure products to meet the demand of domestic travelers.
19:48, 2022/48/04
Vietnam to solidify macro-economic stability: PM
Vietnam’s economy has performed well amid a difficult global environment in the first six months of the year.