Exports recover, turnover increases by more than 12%

Exports are flourishing again

According to the Department of Industry and Trade, in 2023, the export turnover of goods is estimated to reach 2.45 billion USD, an increase of 12.02%, reaching 98.1% compared to the plan. Export goods are quite rich and diverse, with more than 70 items/groups of items, many items have quite good growth in turnover.

For example: Electronic equipment and components increased by 11.4%, construction materials increased by 22.2%; shoes and sandals of all kinds increased by 62.8%, cassava and cassava products increased by 96%; seafood increased by 63.2%, processed fruits and fruit juice increased by 26%; wood pellets increased by 13.8%; electric wires and cables increased by 104.9%; plastic additives increased by 8.1%; rice increased by 102%,...

Mr. Nguyen Viet Hung - General Director of Hoa Son Agricultural Products Processing Company Limited said: From the beginning of the year until now, the export turnover has reached about 20 million USD. Production and business are generally favorable, domestic and export demand is high, prices are good, set at a high level. Raw materials are purchased, 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% of 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 in Son La, Hoa Binh, Thanh Hoa provinces, etc.

In the face of difficulties in the export market, the results achieved are a testament to the efforts and dynamism of the business community. This year, in addition to FDI enterprises, commodity exports also marked the efforts of many businesses to overcome difficulties in finding markets and orders. According to statistics, in 2023, businesses in the province exported goods to the markets of 147 countries and territories, an increase of 10.5% compared to 2022.

Some major export markets are: China accounts for over 20% of the total export turnover of goods in the province; Hong Kong accounts for over 13%; Korea accounts for 12%; the United States accounts for 11%; Taiwan accounts for 5%;... New markets are continuously exploited by enterprises, typically: Mozambique, Serbia, Tunisia, Rwanda, Belize, Benin, Mauritania, Dominican Republic, Maldives, Paraguay,...

In recent times, the Department of Industry and Trade has actively connected and supported businesses in many activities to expand and promote export markets. In coordination with the Vietnam Trade Office abroad, the Department of Trade Promotion - Ministry of Industry and Trade regularly provides information on market situations, products, and trade barriers for import and export businesses; completes the construction of an international market information page, maintains a Zalo group between businesses and the Department of Industry and Trade to exchange information regularly and promptly.

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

In addition, many conferences, seminars and training courses are also organized to support businesses in export activities.

Need a synchronized solution

However, in recent times, export activities have also faced many difficulties and challenges, with many items having a lower turnover compared to 2022. Some items that have always been in the top export markets of the province have been produced at a low level in 2022, the market is difficult, and inventories are large. Textiles decreased by 7.16%; wood chips decreased by 25%; paving stones decreased by 21.06%, textile fibers of all kinds decreased by 33%, and pine resin and cypress groups decreased by 25.1%.

A representative of Haivina Kim Lien Limited Company said that this year, the textile industry is facing a lot of difficulties. Haivina Textile Group currently has 4 factories (2 in Hai Duong, 1 in Ha Tinh and 1 in Nghe An), 3 of which have had to cut their workforce. Haivina Kim Lien Limited Company alone is still able to survive, but its output and working days have decreased by about 50%; 2,600 workers who were previously arranged to work overtime, including Saturdays, now only work 8 hours a day, with Saturdays and Sundays off. There are no orders, so to maintain jobs, workers have to submit applications for next year. If the situation continues to be difficult, we will have to cut our workforce.

Similarly, Deputy Director of Minh Anh Nghe An Garment Joint Stock Company - Mr. Nguyen Dinh Vinh said: 97% of the company's orders are exported to the US market; before, only 3 corporations were enough to order, now there are 8 customers but work is still difficult due to a sharp decrease in consumer demand. Currently, after the Covid-19 pandemic broke out, large corporations have changed their business strategies, the amount of goods is divided into many bags to reduce risks, orders to Vietnam are few...

The main reason for the decrease in export orders this year is due to inflation and tightening spending in countries around the world, which has reduced the demand for imported goods from these countries. The United States is the main export market for textiles and garments, but consumer demand has decreased; economic recession, many items have been put on the trade defense list. Or in the European market, businesses are facing difficulties due to tight monetary policies, rising inflation, increasingly strict standards and regulations. Meanwhile, the Chinese market has just opened, the supply chain has not recovered, and the policy of tightening control over agricultural products and food is still in place.

Currently, at the macro level, many policies to remove difficulties for enterprises are continuing to be actively and synchronously implemented, which will be favorable conditions to support enterprises to restore and develop production and business activities. A representative of KIDO Vinh Limited Company said that the State Bank of Vietnam has loosened monetary policy and implemented many interest rate cuts to support economic growth, which will have a positive impact on promoting production and consumption in the last months of the year. In addition, the existing FTA agreements with Vietnam's major market partners such as the European and American markets continue to have a positive impact on Vietnam's trade, investment and especially exports.

Export activities in 2024 are forecasted to continue to face a number of difficulties and challenges. Input material prices are forecast to continue to increase, inflation is expected to increase in markets, especially Vietnam's key export markets. However, if businesses can take advantage of opportunities to participate in bilateral and multilateral Free Trade Agreements (FTAs) and gain experience in proactively responding and diversifying markets and sources of goods, their exports may be able to limit certain risks.

Mr. Pham Van Hoa - Director of the Department of Industry and Trade said: In the coming time, we will continue to make efforts to promote export development and expand the market. Strive for a total export turnover of 3 billion USD by 2024. To achieve the set target, the industry focuses on implementing tasks under the Project "Export Development in the province for the period 2021-2025" and the Project "International economic integration of Nghe An province by 2025". Researching market demand to advise on the production of goods suitable to the needs of the world market. At the same time, improving competitiveness and developing logistics services in Nghe An province by 2025...