Vietnam's exports are hampered by rising inflation in the economy

DNHN - As a bright spot in the economy, Vietnam's exports are struggling due to rising global inflation and a decline in demand in many markets.

Several commodity groups, such as raw materials and industrial processing; Agricultural products have fallen precipitously, and key products with strengths, such as seafood and textiles, are "hungry" for orders, putting exporters at risk of losing their markets. Due to a lack of orders and a downward trend in commodity prices, the export turnover target for this year faces numerous obstacles.

Diversification of export markets is a matter of survival for businesses in the current environment, although the traditional markets of Vietnam will not be easily altered in one to two years.

It can be seen that Vietnam's seafood exports in the first half of the year totaled approximately USD 4 billion. Despite being equivalent to the same period last year, it raises many concerns for the completion of the $10 billion this year. In general, the export volume of seafood is still declining, but in recent months it has shown signs of stabilization and remains slow. In 2022, the import markets have shown signs of resolving their excess inventory. This indicates that new orders will increase shortly.

In addition, seafood, especially value-added products, are frequently in high demand during the holiday season. Additionally, the Chinese market has a stronger consumption capacity. In the meantime, some nations will conclude their harvests, so we hope that the situation of seafood exports in the final months of the year will improve rapidly.

Companies continue to monitor and assess the consumption situation of markets, primarily the United States. Alongside this is the question of how to produce sufficient materials for processing when the market recovers. Although the price is unsatisfactory to farmers, it is still possible to secure the raw material supply. Businesses must also be better prepared for 2024, which will be centered on providing farmers with cheaper inputs.

In addition to trade promotion and market expansion, the company continues to improve its quality through international certifications and a green economy to build brands and promote Vietnamese seafood.

Vietnam must significantly expand its export market because it has signed trade agreements with numerous countries. Vietnam's export activities with countries with which it has signed trade agreements are still modest and do not match their potential or expectations. Therefore, expanding the market is an issue that businesses must consider and for which they require the assistance of state agencies.

In addition, the problem facing businesses today is the domestic market, to which Vietnamese businesses have not paid sufficient attention; thus, they must determine how to approach the domestic market to export locally. Additionally, meeting domestic demand is a factor that businesses must consider.

Ngoc Phi (TH)