Exports recovered, with value increasing by over 12%.

Exports are picking up again.

According to the Department of Industry and Trade, in 2023, the value of goods exports was estimated at 2.45 billion USD, an increase of 12.02%, reaching 98.1% of the plan. Exported goods were quite diverse and abundant, with more than 70 items/item groups, many of which saw significant growth in export value.

For example: Electronic equipment and components increased by 11.4%, building materials by 22.2%; footwear by 62.8%, cassava and cassava products by 96%; seafood by 63.2%, processed fruits and fruit juices by 26%; wood pellets by 13.8%; electrical wires and cables by 104.9%; plastic additive granules by 8.1%; rice by 102%,...

Mr. Nguyen Viet Hung, General Director of Hoa Son Agricultural Products Processing Co., Ltd., said: "From the beginning of the year until now, export turnover has reached approximately 20 million USD. Production and business are generally favorable, domestic and export demand is high, prices are good and have reached a high level. Raw materials are processed and consumed as soon as they are purchased. The average export price of cassava and cassava products to China has tended to increase since the beginning of the year. However, due to the scarcity of raw material supply, processing only reaches 70% capacity. Currently, the factory's cassava raw material area is only 3,000 hectares, concentrated in Anh Son, Con Cuong, and Tuong Duong districts. To serve production and business, we have to purchase raw materials from Son La, Hoa Binh, and Thanh Hoa provinces..."

Despite the challenges in the export market, the results achieved reflect the efforts and dynamism of the business community. This year, in addition to FDI enterprises, the export of goods also showcased the efforts of many businesses in overcoming difficulties in finding markets and orders. According to statistics, in 2023, businesses in the province exported goods to 147 countries and territories, an increase of 10.5% compared to 2022.

Some of the main export markets include: China, accounting for over 20% of the province's total export value; Hong Kong, accounting for over 13%; South Korea, accounting for 12%; the United States, accounting for 11%; Taiwan, accounting for 5%;... New markets are continuously being explored by businesses, such as: Mozambique, Serbia, Tunisia, Rwanda, Belize, Benin, Mauritania, Dominican Republic, Maldives, Paraguay, etc.

Over the past period, the Department of Industry and Trade has actively connected with and supported businesses in various activities aimed at expanding and promoting export markets. In coordination with Vietnamese trade offices abroad, the Trade Promotion Department of the Ministry of Industry and Trade regularly provides information on market conditions, products, and trade barriers to import and export businesses; completed the construction of an international market information website; and maintained a Zalo group between businesses and the Department of Industry and Trade for regular and timely information exchange.

Export promotion activities have been implemented regularly, diversely, and have initially achieved positive results: Organizing trade delegations abroad (Australia, New Zealand), participating in working groups of Nghe An province to introduce potential and promote exports in the United States, Singapore, Taiwan, etc.; Organizing businesses to participate in the Finefood International Trade Fair (Sydney), the Vietnam-China International Trade Fair (Lao Cai), the FoodExpo Food Fair (Ho Chi Minh City)...

In addition, numerous conferences, seminars, and training courses have been organized to support businesses in their export activities.

A comprehensive solution is needed.

However, in recent times, export activities have also faced many difficulties and challenges, with many items experiencing a decrease in export value compared to 2022. Some items that were always among the province's top exports saw sluggish production in 2022 due to difficult markets and large inventories. Textiles decreased by 7.16%; wood chips by 25%; paving stones by 21.06%; textile fibers by 33%; and pine resin and fir by 25.1%.

A representative from Haivina Kim Lien Co., Ltd. stated that the textile and garment industry is facing extreme difficulties this year. Haivina Textile Group currently has four factories (two in Hai Duong, one in Ha Tinh, and one in Nghe An), and three of them have already had to lay off workers. Haivina Kim Lien Co., Ltd. is still surviving, but production and working days have decreased by approximately 50%. The 2,600 workers who previously worked overtime and on Saturdays now only work eight hours a day, with Saturdays and Sundays off. With no orders, they have to apply for jobs for the following year to keep their workers employed. If the situation continues to be difficult, they will be forced to cut back on labor.

Similarly, Mr. Nguyen Dinh Vinh, Deputy Director of Minh Anh Garment Joint Stock Company in Nghe An, stated that 97% of the company's orders are exported to the US market. Previously, having relationships with just three corporations was enough to secure orders, but now, even with eight clients, work remains difficult due to a sharp decline in consumer demand. Currently, large corporations, after the disruption caused by the Covid-19 pandemic, have changed their business strategies, dividing orders into multiple packages to minimize risks, and fewer orders are coming to Vietnam…

The main reasons for the decline in export orders this year are inflation and austerity measures in countries around the world, leading to reduced demand for imported goods. The United States, a major export market for textiles, is facing challenges due to decreased consumer demand, economic recession, and the inclusion of many goods on trade protection lists. Similarly, businesses in the European market are struggling with tight monetary policies, rising inflation, and increasingly stringent standards and regulations. Meanwhile, the newly opened Chinese market faces difficulties due to an unrecovered supply chain and tightened controls on agricultural and food products.

Currently, at the macro level, many policies aimed at removing difficulties for businesses are being actively and synchronously implemented, creating favorable conditions to support businesses in restoring and developing their production and business activities. A representative from KIDO Vinh Co., Ltd. stated that the State Bank of Vietnam's loosening of monetary policy and multiple interest rate reductions to support economic growth will have a positive impact on boosting production and consumption in the remaining months of the year. Furthermore, existing FTAs ​​with major market partners such as Europe and America continue to have a positive impact on trade, investment, and especially Vietnam's exports.

Export activities in 2024 are projected to continue facing several difficulties and challenges. Input material prices are expected to continue rising, and inflation is high in many markets, especially Vietnam's key export markets. However, if businesses can take advantage of opportunities from participating in bilateral and multilateral Free Trade Agreements (FTAs) and leverage their experience in proactively responding to and diversifying markets and sources of goods, they may be able to mitigate certain risks.

Mr. Pham Van Hoa, Director of the Department of Industry and Trade, stated: "In the coming time, we will continue to strive to promote export development and expand markets. We aim for a total export turnover of 3 billion USD in 2024. To achieve this goal, the department will focus on implementing tasks under the 'Export Development Plan for the Province in the period 2021-2025' and the 'International Economic Integration Plan of Nghe An Province until 2025'. We will research market demand to advise on the production of goods that meet the needs of the global market. At the same time, we will enhance the competitiveness and develop logistics services in Nghe An province by 2025…"