Logo of Phnom Penh Post newspaper Phnom Penh Post - 2021 Vietnam trade revenue expected to hit new record high

2021 Vietnam trade revenue expected to hit new record high

Content image - Phnom Penh Post
Vietnam’s trade value surged 22.3 per cent year-on-year in the first 11 months of 2021 to exceed $599.1 billion. VIETNAM NEWS AGENCY

2021 Vietnam trade revenue expected to hit new record high

Despite the lingering effects of the pandemic, the Vietnamese Ministry of Industry and Trade forecasts that the country’s total trade value this year may reach a new record of $640-645 billion, with a slight trade surplus.

The ministry attributed the results to the great efforts of the business community in overcoming the difficulties of the Covid-19 pandemic to maintain and restore production. In particular, major industries such as textiles, garments, leather and footwear are on track to achieve their business targets earlier than expected, despite the pandemic.

From now until the end of the year, all industries have an opportunity to try and regain a growth rate close to before the pandemic broke out. Industries with high exports, such as phones, electronics, machinery and components, are likely to post export growth rates of 15-25 per cent this year, it said.

According to the ministry, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA) have had positive effects on the national export activities, especially in markets that did not have free trade agreements with Vietnam before.

Thanks to the CPTPP, which came into effect three years ago, the exports of goods to Canada, Mexico and Peru have all grown by between 25-30 per cent per year.

The EVFTA, which went into effect one year ago, is a bilateral commitment with incentives and long-lasting value.

At present, 20 per cent of local enterprises have taken export tax incentives from the EVFTA with EUR.1 certificates of origin (C/O). For shipments to the EU worth less than €6,000 ($6,800), local enterprises are allowed to self-certify origin. This helps ensure smaller businesses do not have to spend time applying C/O, while still being able to enjoy tax incentives.

Right now, the biggest difficulty facing local enterprises is a shortage of labour. Enterprises in southern Vietnam are facing many difficulties in facilitating a return for workers who have left the region, without which they cannot restore 100 per cent of their production capacity.

Due to the impact of the Covid-19 pandemic, the cost of raw materials and logistical services is increasing across the globe. These factors will put pressure on production costs for domestic businesses.

In addition, if localities do not fully comply with the Government’s Resolution 128/NQ-CP, which provides temporary guidance on the “Safe adaptation, flexibility and effective control of the Covid-19 pandemic”, or must facilitate pandemic prevention measures beyond what is necessary, it could cause further instability and affect the psychology of the local businesses and the confidence of investors.

The ministry hopes that the pandemic prevention measures strike the right balance between ensuring people’s safety and not affecting the production and trade activities of businesses.

Vietnam’s trade value surged 22.3 per cent year-on-year in the first 11 months of this year to exceed $599.1 billion, according to the General Statistics Office.

The country exported commodities worth nearly $299.7 billion in the past 11 months, up 17.5 per cent from a year earlier. In the period, there were 34 commodities with export turnover of over $1 billion, accounting for 93.5 per cent of the total export value.

In its latest report on November 30, Standard Chartered projected Vietnam’s export turnover to record an annual average growth of seven per cent per year, hitting $535 billion by 2030.

The “Future of Trade 2030: Trends and markets to watch” also forecasts that the global exports will almost double from $17.4 trillion to $29.7 trillion over the next decade.

Vietnam is considered an important market contributing to the growth of the global trade, it said.

It also found that 41 per cent of global businesses currently operate or plan to invest in Vietnam within the next five to 10 years. This shows that Vietnam will be one of the important motivations of global trade growth in the next 10 years.

The US and China will continue to be Vietnam’s largest export markets, respectively accounting for 26 per cent and 19 per cent of the Southeast Asian country’s total export turnover by 2030.

According to the study, Vietnam is an emerging manufacturing powerhouse with expanding international trading relationships.

VIET NAM NEWS/ASIA NEWS NETWORK

MOST VIEWED

  • Research key to Kanitha’s rep for expertise

    Sok Kanitha is used to weighing in on controversial issues using a confident approach that signals expertise and authority, and a recent video she made was no exception. Her “Episode 342: The History of NATO” video went live on January 16, 2023 and immediately shot to 30,000 likes and 3,500

  • Cambodia maintains 'Kun Khmer' stance despite Thailand’s boycott threat

    Cambodia has taken the position that it will use the term "Kun Khmer" to refer to the sport of kickboxing at the upcoming Southeast Asian (SEA) Games, and has removed the term Muay from all references to the sport. Despite strong reactions from the Thai

  • Knockout! Kun Khmer replaces ‘Muay’ for Phnom Penh Games

    Cambodia has decided to officially remove the word Muay from the programme of the 32nd Southeast Asian (SEA) Games 2023 in May. “Kun Khmer” will instead be used to represent the Southeast Asian sport of kickboxing, in accordance with the wishes of the Cambodian people. Vath

  • Artificial insemination takes herd from 7 to 700

    Some farms breed local cows or even import bulls from a broad for the purpose of breeding heavier livestock for meat production. One Tbong Khnum farmer has found a more efficient way. Hout Leang employs artificial insemination to fertilise local cows. Thanks to imported “straws”

  • New int’l airport nearly half complete as travel industry returns to life

    Construction of a new airport that is slated to serve the capital has passed the 43 per cent completion mark, raising prospects for a proper recovery in the civil aviation and tourism sectors as international travellers return to the Kingdom in increasingly large numbers. The figure

  • Chinese group tours return to Cambodia starting Feb 6

    Cambodia is among 20 countries selected by Beijing for a pilot programme allowing travel agencies to provide international group tours as well as flight and hotel packages to Chinese citizens, following a three-year ban. As the days tick down until the programme kicks off on February 6,