Exports and signs of recovery

DNHN - Effective control of the Covid-19 outbreaks enabled our country to quickly re-establish its economic system while also becoming an attractive destination for foreign direct investment (FDI), which boosted exports in the first quarter of this year.

In the first quarter of 2022, exports reached USD 87 billion, up 10.9% compared to the first quarter of 2021. With exports reaching $32 billion, March was the highest month in the first three months of the year, much better than February - only $23.4 billion. 15 products with a value of 1 billion USD or more, accounting for 80% of total export turnover; in which there are 5 products over 5 billion USD with 2 names reaching 10 billion USD or more. 

In the first 3 months of the year, seafood production and processing returned to normal, market demand increased at a high level, seafood exports followed the breakthrough of the last months of 2021, increasing by 38.7% - double the growth rate of the whole group of agricultural, forestry and fishery products (19.7%), the second highest increase in 9 items of this group. 

In the first two months of the year, seafood exports to the UK skyrocketed. Supermarkets in the UK are restricting the sale of frozen fish from Russia, Vietnamese pangasius will increase market share.

In January, exports of wood and wood products reached $1.55 billion, the most to the US, followed by Japan and then China. This is the third time this item has surpassed the 1.5 billion USD mark in a month, the first time is March 2021, followed by June, making this item one of the 7 key export commodity groups to reach more than 1 billion USD in the first month of the year, among the top 3 items with a double-digit increase. 

The US continues to be Vietnam's largest export market with 25.2 billion USD. The trade surplus to the EU is estimated at 7 billion USD, showing that the EVFTA agreement continues to be effectively utilized, with room for growth.

On January 1, 2022, the Regional Comprehensive Economic Partnership (RCEP) took effect. This is the world's largest FTA by GDP, larger than the CPTPP, EVFTA, Mercosur trade bloc in South America and the recent US - Mexico - Canada FTA. 

RCEP will contribute to the multilateralization of FTAs ASEAN has signed with each partner country, harmonizing commitments; maximize economic benefits, especially rules of origin and trade facilitation, contribute to strengthening regional supply chains and post-pandemic economic recovery. 

Accordingly, many shipments of fish sauce, instant coffee, high-class beverages... with great value went to the US in the first 2 months of the year, reinforcing our No. 1 position in the export market.

The Korean partner announced tariff quotas for rice imports and plans for rice import tenders in 2022. Accordingly, 55,112 tons of Vietnamese rice will enjoy a preferential tax rate of 5%. Tax rate for imported rice outside the quota is 513%. 

Vietnam Pavilion - Vietnam Pavion on e-commerce platform Alibaba.com, helping businesses expand advertising space, reach customers from 190 countries and territories, become an effective trade promotion tool , boosting exports in the new context.

However, there are still impediments. Eleven export product categories, including wood goods, electric bicycles, and solar batteries, are all exported to the United States. Opportunities and difficulties are inextricably linked. The tale of 100 cashew crates sent to Italy demonstrates that warnings concerning international payment fraud are not superfluous. This also showed the field's weakness, although the "crime" is not limited to enterprises.

Russia's military assault quickly impacts underdeveloped countries; Vietnam is not an exception. Exporting to Russia is not significant, but because the majority of them are small, medium, and micro businesses that "stick" to anyone unilaterally, that unit is unpleasant. Imports from Russia are also tiny, but they are "nail" products used in manufacturing, particularly high technology, and for export, so the impact will be significant.

Before the Lunar New Year, the "chronic sickness" of vegetables and fruits on the northern border has been reduced, and everyone who has just finished eating Tet will quickly relapse. Exports of vegetables and fruits fell 13% in the first quarter of this year, when exports of vegetables and fruits to other markets flourished. 

Therefore, locations with border gates to China must implement a model of "safe border gate" and "green border gate" to reassure the Chinese that the disease has been effectively prevented.

Source SaigonDautu