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15:48 12/10/2022

Foreign trade value to exceed US$700 billion

Given impressive growth in recent times, Vietnam’s foreign trade value in 2022 is expected to exceed US$700 billion. Tran Thanh Hai, Deputy Director of the Agency of Foreign Trade under the Ministry of Industry and Trade (MoIT), discussed these results with the media.

Tran Thanh Hai, Deputy Director of the Agency of Foreign Trade

Exports continued growing at a double-digit rate, yielding a trade surplus of nearly US$4 billion in the first eight months. Could you share the reasons behind this achievement?

In the first eight months of 2022, foreign trade value totaled approximately US$500 billion, with import and export value growing 13.6 percent and 17.3 percent, respectively, compared with the same period last year.

The most favorable factor helping Vietnam achieve these results was the resumption of economic activities in the fourth quarter of 2021. The manufacturing and service sectors have quickly responded to global demand to boost exports.

Free trade agreements (FTAs) also helped Vietnamese companies increase exports, especially seafood, fruit, vegetables and other farm products.

In the first eight months, Vietnam recorded a trade surplus of nearly US$4 billion, against a deficit of US$3.52 billion in the same period last year. This was a positive sign, especially in the context of recession and growing inflation in major economies leading to unfavorable changes in foreign exchange rates.

Inflation also led to decreased consumer demand in many markets. In this context, the trade surplus in the first eight months would help Vietnam maintain macroeconomic stability and boost exports during the rest of the year.

Vietnam’s import-export value in 2022 is forecast to exceed US$700 billion and continue to yield a trade surplus. What do you think of this forecast?

Given the export growth in recent times, total import-export value in 2022 will possibly exceed US$700 billion, with annual growth higher than the 7-8 percent target set by the National Assembly and the government. Trade surplus is also expected to be maintained.

However, the actual results may be affected by various factors, especially the Russia-Ukraine conflict leading to supply chain disruptions and the recession resulting in decreased consumer demand in some markets.

Foreign trade continues to be a bright point of the Vietnamese economy

Processing industry-related products accounted for nearly 90 percent of Vietnam’s export value in the first eight months. However, many companies in this sector faced shortages of orders and human resources. How is the MoIT helping businesses?

Many sectors achieved good export growth in the first eight months. The textile and garment sector is expected to record annual export value of about US$45 billion this year.

Nonetheless, consumers in some markets have tightened their belts due to recession and inflation, and this is a major challenge for the textile and garment industry in particular and many other sectors, such as leather, footwear, handbags, and wood products.

Import-export activities also face other risks including market-related problems, epidemics, and supply chain disruptions.

State management authorities have been actively helping businesses overcome these difficulties. Recently, China accepted Vietnam’s durian and passion fruit exports via official trade channels. The export of other products such as rice, seafood, coffee and pepper also grew well.

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