Grey global economic situation may hurt exports: Vietnamese ministry

The danger of economic depression, high inflation and high-interest rates “will lead to a slash in demand for consumption in many nations worldwide including those in Europe and America, which are the major trade partners of Vietnam,” the ministry said.

As the trend of non-globalisation is surging, trade protectionism is rising across many nations, the ministry noted.

The country will also continue facing some risks till the year end as the global economy is projected to see slower-than-expected growth, leading to a slow-paced recovery in consumption demands, the ministry was quoted as saying by a Vietnamese newspaper.

The Vietnamese National Assembly Economic Committee reported that this worldwide grey economic situation will continue to badly affect the Vietnamese economy, especially exports and imports.

Exports have significantly reduced in the first six months this year, MoIT said.

In the first six months this year, Vietnam’s total import and export turnover of goods is estimated to reach $316.65 billion, a year-on-year reduction of 15.2 per cent. The garment and textile industry witnessed an export turnover worth $15.75 billion during the period—down by 15.3 per cent year on year.

Fibre2Fashion News Desk (DS)