Due to economic difficulties, the import and export of numerous industries continue to recover very slowly.

DNHN - According to the Ministry of Industry and Trade, the global economy is still experiencing difficulties, even though there are signs of recovery. However, the speed and scope of the recovery vary across countries, and consumer demand is also recover

The first half of this year has been challenging for Vietnam's export industry, which continues to face challenges. At least until the end of the second quarter, there will be a decline in export orders as a result of the lack of growth in consumer demand in major markets.

In the first five months of the year, the export volume of footwear decreased by 13.3% compared to the same period last year, reaching only about USD 8.2 billion. Also declining by 6.5%, exports of handbags brought in only US$1.553 billion. In five months, therefore, the combined exports of footwear and handbags only amounted to $9.75 billion.

Due to the lack of export orders, footwear export turnover has decreased by 13.3%.
Due to the lack of export orders, footwear export turnover has decreased by 13.3%..

Ms. Phan Thi Thanh Xuan, vice president of the Vietnam Leather, Footwear, and Handbag Association (Lefaso), stated that the decline in industry orders has reached approximately 30 percent, accurately reflecting the current economic climate. The lack of orders creates difficulties for businesses and exacerbates the employment crisis.

Major economies such as the United States and the European Union have reduced spending on conventional and luxury goods, causing a decline in demand. As domestic production exceeds domestic demand, domestic manufacturing industries are export-focused and highly dependent on the global market.

Particularly, industries such as textiles, leather shoes, and electronics produce less than 10% of their output for the domestic market; the remainder is exported.

Ms. Xuan predicts that the export market situation will continue to be challenging at least through the end of the second quarter. The market may gradually recover beginning in the third quarter of 2023; however, the growth rate is anticipated to be no greater than that of the first and second quarters. It will be challenging to achieve growth comparable to previous years. This presents a significant obstacle for the leather footwear industry in achieving its goals for the year.

In the realm of seafood, prawns are the product with the highest export turnover. However, in the first four months of the year, prawn exports only reached USD 887 million, a 36% decrease compared to the same period in the previous year. This decline exerts significant pressure on the prawn industry.

Consumers in the U.S., Japan, China, and South Korea have reduced their purchases of Vietnamese prawns as a result of rising inflation and a challenging economic climate. The US market, which accounts for 18% of global shrimp exports, decreased shrimp purchases by 45 percent. Shrimp exports to the United States only reached 159 million USD in four months. The average import price of prawns into the United States decreased 13% year-over-year during the first quarter. Not only Vietnam, but the majority of countries exporting prawns to the United States also saw a sharp decline.

Illustration
Illustration.

The Vietnam Association of Seafood Exporters and Producers (Vasep) predicts that importers are acting cautiously and awaiting a change in the economic climate in the United States. It is anticipated that prawn imports into the United States will resume operations in August 2023. In five months, the total export revenue of the entire seafood industry has decreased by 28%, reaching only USD 3.371 billion. There have been no indications of an improvement in export conditions for orders.

According to the Ministry of Industry and Trade, the global economy is still experiencing difficulties, even though there are signs of recovery. However, the speed and scope of the recovery vary across countries, and consumer demand is also recovering slowly. sluggish.

Textiles and apparel, leather footwear, timber, and seafood industries experienced the steepest declines in exports to major markets. Finding new markets, diversifying products, and adding value are the solutions that businesses will seek in the future to overcome challenges.

PV (t/h)

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