Vietnam commodities export in 2017 is forecast highest since 2011, enjoying a growth of 18.9 per cent and earning US$210 billion.
Up to this moment, Vietnam commodities export value has reached 92.4 per cent of 2017 target of US$188 billion with many items overfulfilled.
Improvement in main commodities
Aquaculture is confronted with disadvantages due to American protection with trade barrier and EU media downgrading. Export to China though with great potential remains unstable due to small channels. Higher prices of tra fish and shrimp in local market have increased production cost and decreased competitiveness. Nevertheless, agricultural and aqua products continue their growth with US$21.3 billion in the first 10 months of 2017, accounting for 12.3 per cent of total export value or increased by 17.1 per cent compared with the same period last year.
Rice export in the same 10 months is estimated at five million tonnes, 21.6 per cent higher than the same period in 2016, valued at US$2.23 billion and increased by 20.3 per cent. Meanwhile the export values of coal, crude oil, petroleum and minerals continue their growth. The export value of processed products is US$140.6 billion, increased by 21.9 per cent compared with the same period last year and 81 per cent of total export value.
In the same period, garment export marked US$21.5 billion, increaased by 9.5 per cent. While yarn export increased by 22.2 per cent and worth US$2.92 billion.
Regarding export markets, main markets recorded important growth. Traditional Asian market increased by 28.9 per cent accounting for 51.5 per cent of total export value. Slight increase was recorded in other markets: 15.1 per cent for Europe with preferential treatment to be exploited, EU 27 increased 15.7 per cent, American markets 12.3 per cent, in total, accounting for 24.6 per cent of export value.
The export value in the first 10 months of 2017 is estimated at US$172.5 billion, 22 per cent more than the same period last year. Domestic businesses accounted for US$64.6 billion, increased by 11.6 per cent of the same period last year. FDI enterprises made up US$107.9 billion and increased by 29.2 per cent with export surplus of US$1.23 billion.
The growth in 2017 is due to the revival of trade in Asia and import demand increased in North America after a slowdown in 2016. Furthermore, GDP increases in China, the US and EU have increased import demands and promoted regional trade. The economic growth and increased demands of those big markets have helped local businesses expand main markets and find new markets.
The competitiveness of Vietnamese products has been improving. According to Global Competitiveness Report of the World Economic Forum (WEF), Vietnam ranks 55th in the world, five rungs higher than 2016 and 20 rungs compared to five years ago. According to WEF, Vietnam has recorded important improvement in technology and efficiency in labour market. In addition, Free Trade Agreements with reduction of tariffs have helped improve competitiveness of Vietnamese products and increase market shares.