26 May 2022, Mumbai:
Vietnam’s exports witness robust growth on the sound order pipeline
According to Tran Thanh Hai, deputy general director of the Agency of Foreign Trade, Vietnam's exports and imports grew by double digits in the first quarter of 2022, reaching $176 billion, up 14.4% yearly. Vietnam's economy continues to be optimistically expanding & witnessed in Q1 2022 that country is open for businesses and visitors.
During this time, exports increased by 12.9%. According to several analysts, overall export-import income might surpass $700 billion this year.
Thus the ministry of industry and trade (MoIT) has made extreme efforts to enhance how market information is delivered to exporters. On the other hand, foreign commerce is expected to increase by 6-8 percent this year to $363 billion, according to the Ministry of Industry and Trade.
FTAs Existing Pie
The increase, according to Hai, is due to the benefits of new-generation free trade agreements (FTAs) and regional trade agreements.
Below is the list of FTAs that Vietnam has concluded by now.
Vietnam - Japan Economic Partnership Agreement. ...
Vietnam - Chile Free Trade Agreement. ...
Vietnam - Korea Free Trade Agreement. ...
Vietnam - Eurasian Economic Union Free Trade Agreement. ...
ASEAN Agreements. ... ASEAN - India FTA. ...
ASEAN - Australia - New Zealand FTA.
Shift Of Apparel Orders From China To Vietnam
The government has created various websites that provide domestic businesses with information updates. It recently unveiled the Vietnam National Trade Repository, which was constructed with the support of the UK government and themed websites hosted by Vietnamese trade offices throughout the world.
According to a news agency, the Ministry of Industry and Trade has also organized several virtual and in-person training courses on trade policies and FTAs, as well as given away various handbooks, publications, and materials that provide instructions on how to export to China and new markets such as the Middle East and Latin America.
A new manual is scheduled to be released soon, instructing businesses to transition from unofficial to legitimate quota export. Following strict epidemic restrictions, Vietnam's economy opened up last year.
The country's borders were reopened this year, and foreign flights were authorized, allowing specialists and tourists to come. Despite many instances in the past, a large vaccination deployment has kept severe sickness and deaths to a minimum, allowing industries to continue operating.
While Vietnam's economy is booming and traffic in key cities is approaching pre-pandemic levels, external concerns threaten to derail the country's progress.
Downward Growth Risks The Nation Will Have To Mitigate
1. Given the recent global IMF downward revision, global growth is now likely to stabilize into a 3.6% growth trajectory over 2022-23.
2. Given elevated persistent global inflation, the prospect of competitive exchange-rate appreciations looming larger is a real concern.
In face of the current sanctions against Russia which have upended the global economy, the foregone conclusion is that Vietnam's economy will not be spared the fallout.
