Clearing the flow of export goods (part 1)
Despite the pandemic, Vietnam’s trade balance in the first three months was still a surplus of USD 2.82 billion, which is higher in the same period last year, 1,46 billion USD.
No matter we still have faced the majority of problems brought by the illness. However, the government gives the hand to help business community and whole society that ” TURNING RISK INTO OPPORTUNITY”.
By following the analytic of Ministry of Industry and Trade shows that, in March, commodity of export turnover reaches 20 billion USD is less 4,1% than last month. As more specific, garment, stell, aquaculture, phone and components is recuding 29%, 16.4%, 11.9%, 10.8% respectively.
According to Ministry of Industry and Trade, the export turnover of the first three month only has 59.1 billion USD, increased 0.5% by comparison in the year 2019( this year increased 5.3 %) is the lowest number ever since 2003.
This is also the common trade of international and Asia trade such as export turnover in China dropped 17%, Korea is 1.5%, Hongkong is 12%, so on..
In this result, the domestic sector was a bright spot when export rover reached 18.65 billion USD, up 8.7%, much higher than the average growth rate of the whole country. Foreign-trade invested decreased by 2.9% compared to the same period last year.
In addition, because of pandemic spreaded rapidly on February, China trading seemed to be shutdown. However, with the timely guidance of the Prime Minister and the close handling of the Ministry of Industry and Trade and other ministries and localities, trading activities through road border gates with China have been gradually removed.
At the moment, exporting-importing Vietnam-China activities is on the way recovering at some border gates that is the bright side in the downtime.
But, EU and US market is in the complicate time due to the affect of Covid-19 to two main markets. As a result, experts predict that export turnover of processed industrial goods reached 50.05 billion USD in the first quarter, an increase only 1.7% compared to the same period last year (6.6% increase in the same period last year).
After the first quarter, for processing industries, the supply of raw materials for productions and export faces many difficulties not only Vietnam enterprise but also for other countries when they are highly dependently on Chinese raw materials. On top of that, when this problem is solved, demanding from US and EU is dropping significantly by Covid-19 affected. Therefore, many items such as textiles, footwear, bags, cameras,…. have decreased turnover.
The remaining commodity group, which is mineral fuel, also dropped by 15.9%, in which, crude oil decreased by 8% over the same period , all type of oil and petrol down 30.1%
However, notably, Vietnam’s trade balance in the first quarter continued to have a surplus of 28.2 billion USD, higher than the surplus of 1.46 billion USD in the same period in 2019.
To be continued…