Vietnam’s export turnover estimated to reach $240 billion this year

Vietnam’s export turnover is estimated to reach US$240 billion this year, increasing 10-12 percent compared to 2017, said deputy chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Vo Tan Thanh at Vietnam Export Forum 2018 on November 28.

According to Mr. Thanh, the export turnover has already topped US$200 billion since early this year, increasing 14.2 percent over the same period last year. Of these, domestic sector got $60 billion, up nearly 17 percent. The remaining amount was from foreign direct investment (FDI) sector.
Major export items posting high export turnover include phone and parts with $41 billion, garment-textile $26 billion and electronics-computer-components $25 billion. Machine-equipment, tools-accessories and footwear maintained the growth rate of 10-30 percent for the last many years.
Talking about export advantages, delegates at the forum said that lot of domestic companies have taken advantage of incentives from free trade agreements (FTAs) which Vietnam has attended.
So far the country has signed 13 FTAs with 10 having taken effect. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is expected to take effect in February next year.
Quoting the export development strategy which the Government has approved, Mr. Vo Tan Thanh said that Vietnam’s export import turnover is expected to balance by 2020. The country will enjoy trade surplus since 2021. In fact, it has obtained trade surplus which is predicted to hit $7 billion this year.
On the other hand, economic experts said trade surplus unsustainable for depending on FDI firms. Currently, the sector makes up 70 percent of total export turnover.
In addition, most equipment, technologies and materials for export have mainly depended on import accounting for 60 percent so added value has not been high.
Moreover, surveys by Japan External Trade Organization (JETRO) show that only 40 percent of domestic firms have been able to take advantage of incentives from FTAs.
Logistics service plays a significant role in export promotion but the service has showed limitations in Vietnam.
Mr. To Chi Binh from Bee Logistics Company said that Vietnamese businesses have supplied only 25 percent of logistics service with the remaining part falling in the hands of foreign firms.
Delegate at the forum said that over 90 percent of domestic firms are small and medium sized. At present only 21 percent of them supply support products for foreign firms. Hence it is necessary to improve their production capacity for better export ability.
Mr. Tran Van Cong, deputy head of the Farm Produce Processing and Development Department under the Ministry of Agriculture and Rural Development, said that the ministry is working with authorized agencies to assist production businesses and farmers to practice farming according to global standards.
In the upcoming time, the ministry will coordinate with authorized agencies to classify major products having export potentials and create advantageous conditions for businesses to invest in these fields.

By AI VAN – Translated by Hai Mien

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