Exports, Imports Fall in August Due to Covid

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Extending social distancing and lockdown negatively affected Vietnam’s imports and export in August 2021.

Export and import turnovers down compared to July 2021

A report by the Ministry of Industry and Trade showed that Vietnam’s export turnover in August 2021 fell 6% compared to the previous month to reach roughly US$ 26.2 billion and was down 5.4% compared to the same period in 2020.

Notably, turnover was down 11.2% for agricultural and aquaculture product exports compared to the same period last year and 33.2% for fuel and minerals.

Covid affected Vietnam’s export and import in August 2021. Photo: VGP News

The processing industry also recorded a decrease in exports to reach US$ 23.06 billion, down 3.3% compared to the same period in 2020. Specifically, export of computers, electronic devices and components was down 12%, textile and garment 9.2%, wood and wooden products 26.9% and shoes 38.5%.

However, combining the first eight months of 2021, Vietnam’s total exports rose 21.2% compared to the same period last year to US$ 212.55 billion.

Similarly, the import turnover in August 2021 was down 5.5% compared to the previous month. From January to August, however, Vietnam achieved US$ 216.26 in import turnover, up 33.8% compared to the same period in 2020, notably steel (43.5%), smartphones and smartphone accessories (42.7%), cotton (32.8%), machines and machine spare parts (35.5%), footwear (29.5%), textiles (27.8%) and computer, electronic devices and components (19.2%).

Strengthening control of strategic products

Vietnam’s export and import are predicted to face both opportunities and challenges due to the Covid-19 pandemic, with the rate of controlling Covid most likely deciding the export growth rate.

For example, the supply and demand of products within the processing industry are being disrupted as many businesses have halted the operation.

However, free trade agreements are being carried out more comprehensively and effectively. The agreements on which Vietnam has signed such as The Comprehensive and Progressive Agreement for Trans-Pacific Partnership, the EU–Vietnam Free Trade Agreement and the UK – Vietnam Free Trade Agreement will continue to create favorable conditions for Vietnamese products to infiltrate the partner markets, boosting export once Covid is controlled.

Free trade agreements will continue to create favorable conditions for Vietnamese products to infiltrate foreign markets post-Covid. Photo: VGP News

Tran Thanh Hai, deputy director of the Export and Import Department under the Ministry of Industry and Trade, noted that the ministry had established working groups consisting of representatives of different departments under the ministry to work continuously with businesses in southern Vietnam and provide recommendations to address challenges in transporting necessities, inoculating transporters and logistics employees and submitting proposals to create smooth waterway transportation paths.

“The working groups in southern, northern and central Vietnam are focusing on lifting the challenges facing businesses to resume production growth and boost export,” Hai said.

Tran Thanh Hai, deputy director of the Export and Import Department under the Ministry of Industry and Trade. Photo: Dau tu Online

Hai noted that the ministry had been enhancing trade promotion activities, connecting businesses and actively using e-commerce platforms to boost consumption, adding that these initiatives had been effective in improving the consumption of agricultural products from Bac Giang, Hai Duong, Son La provinces in northern Vietnam and other provinces in the south.

Notably, the Ministry of Industry and Trade published Direction No. 10/CT-BCT dated in August, to request agencies under the ministry to cooperate with the relevant associations to closely supervise market fluctuations and make timely recommendations on import and export control measures.

“I believe that with the potential and experiences we have gained, the advantages from free trade agreements and the reputation of Vietnamese businesses, Vietnam will soon resume production growth,” Hai said.

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