Vietnam's Exports Slowed Down Due to Covid, Import Achieved US$ 1.7 Billion

The Ministry of Industry and Trade highlighted that Vietnam’s export in July reduced 0.8% compared to the previous month due to Covid, reaching US$ 27 billion.
August 05, 2021 | 23:07
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As Covid continues to spread in many cities and provinces, especially in the economic center Ho Chi Minh City, export in July slowed down.

Export decelerated

A report by the Ministry of Industry and Trade showed that export turnover in July 2021 reached US$ 27 billion, about 0.8% lower than the previous month.

Specifically, export turnover of the agricultural, forest and aquaculture products reduced 5.6% and gained US$ 2.38 billion. Export of fuel and minerals plummeted by more than 55% compared to June, while the processing industry gained 0.9%.

However, in the past 7 months, Vietnam’s total export turnover increased 25.5% to reach US$ 185.33 billion.

Chairman of the board of the Vietnam National Textile and Garment Group Le Tien Thuong predicted that production and trade might not return to the conditions achieved before the latest outbreak until September, considering the current occurrences.

Vietnam's Exports Slowed Down Due to Covid, Import Achieved US$ 1.7 Billion
The garment industry, with its large-scale factories, was particularly hit hard since Covid broke out. Photo: Bao Tin tuc

“Businesses should be proactive in grasping the most updated information and be flexible in production activities, such as dividing resources and holding online meetings to minimize negative impacts from contact tracing,” Thuong said.

On the other hand, import turnover in July was expected to reach US$ 28.7 billion, an increase of 3.8% compared to the previous month. From January to July, the total import turnovers reached US$ 188.03 billion, or 35.3% higher than the same period in 2020.

In total, Vietnam’s imports were valued at around US$ 1.7 billion in July.

Finding solutions to boost the market flow

Vietnam’s export achievements could not be gained without joined efforts of the business community and the government’s role in managing the macroeconomy.

According to the Deputy Minister of Industry and Trade Do Thang Hai, the increase of 25.5% in export turnovers was a positive sign facing spreading Covid. He also predicted that there would be room for trade growth, especially as free trade agreements were being implemented more comprehensively and effectively, thereby leveraging Vietnam’s export.

Vietnam's Exports Slowed Down Due to Covid, Import Achieved US$ 1.7 Billion
The EU–Vietnam Free Trade Agreement has been benefiting the export of Vietnamese products to the EU market. Photo: Nhandan

However, considering the complicated Covid-19 occurrences, Deputy Minister Hai assigned the Ministry’s Industry Agency to coordinate with associations, industries and businesses to investigate the challenges facing industrial production particularly in industrial parks and timely propose solutions to address these challenges and maintain production. The leader of the Ministry of Industry and Trade also assigned the Trade Promotion Agency to support localities with agricultural products in the harvest season, prioritizing domestic consumption.

With its experiences in promoting agricultural products online, the Trade Promotion Agency would continue to hold trade promotion events, particularly for agricultural products produced in southern Vietnam and central highlands.

The Agency's coming plan is "to develop a promotion plan for each group of products, not for individual products," according to the Agency leaders. In addition, the agency will focus on connecting importers with exporters and promoting trade of agricultural products on e-commerce platforms.

Vietnam's Exports Slowed Down Due to Covid, Import Achieved US$ 1.7 Billion
Containers stuck at Cat Lai Port in Ho Chi Minh City. Photo: VnEconomy

To facilitate the smooth flow of products for import-export businesses facing Covid-19, the Minister of Industry and Trade Nguyen Hong Dien submitted a document to the Prime Minister to propose solutions to address containers stuck at Cat Lai Port in Ho Chi Minh City. Specifically, the Ministry of Industry and Trade requested the government to assign the Ministry of Finance and Vietnam Customs to design mechanisms, allowing Cat Lai Port to move containers of imported goods, including containers stuck at Cat Lai for more than 90 days, from Cat Lai to other ports such as the Long Binh and Nhon Trach Inland Container Depots in Dong Nai province.

The ministry also requested that Covid vaccination be provided to port staff, including drivers and staff in charge of receiving goods and reduce costs for storing containers at Cat Lai Port for businesses facing halted production due to Covid.

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