Vietnam's MoIT urges leveraging FTAs for boosting exports

08 Apr '23

2 min read

Pic: Shutterstock/Avigator Fortuner

Insights

Vietnam's Ministry of Industry and Trade (MoIT) has urged the country to capitalise on its FTAs and implement measures to boost trade to increase exports.
The nation's exports rose by 13.5 per cent in March, but the first-quarter exports decreased by 14.8 per cent compared to last year.
Domestic firms saw the hardest hit, with a drop of 17.4 per cent.

Leveraging Vietnam’s multiple free trade agreements (FTAs) and implementing measures to boost trade are vital for increasing exports in the future, as per the country’s ministry of industry and trade (MoIT). The nation’s exports picked up in March, reaching $29.57 billion, a 13.5 per cent increase from February.

The total exports for the first quarter of 2023 decreased by 14.8 per cent compared to the same period last year, with domestic firms being hit the hardest with a drop of 17.4 per cent compared to foreign firms, which saw a decrease of 10 per cent. MoIT expects the situation to persist, given the slowdown in global demand for goods, especially in major markets like the European Union (EU) and the US. In the last three months, there was a 13.1 per cent decrease in exports for industrial sectors, amounting to $67.5 billion.

The US remains Vietnam’s largest buyer, with a total import value of $20.57 billion. Vietnam imported $75.1 billion in goods and services in the first quarter of 2023, a 14.7 per cent decrease year-on-year. Despite that the nation’s trade surplus for March stood at $650 million, resulting in a first-quarter trade surplus of $4.07 billion, a significant upswing from the previous year's corresponding period of $1.87 billion.

The MoIT warned that Vietnamese textile products could face increased competition in many of their major markets as strong competitors like Bangladesh, Cambodia, El Salvador, India, and Indonesia have signed FTAs with these markets. The ministry called on firms to make greater efforts to meet consumer demand in foreign markets, launch more marketing campaigns, and improve product safety and quality.

Fibre2Fashion News Desk (NB)

More Textiles News - Vietnam...