Export orders in several major areas such as Vietnam’s textiles, garments, footwear, and electronics are gradually recovering and are expected to make up for this year’s sharp drop in exports.
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Production indexes in many industrial sectors are gradually recovering, as well as export orders in October Exceeding the previous few months, some areas that have always had huge export volumes will resolve the shrinkage of export activities, such as textiles and garments, footwear, electronics, aquatic products, etc.
The export quota of leather shoes and handbags to the economic system was completed with exports of US$22 billion last year. The incident had a major impact, so associations and companies stepped up their efforts to follow up on orders.
In the first 10 months of this year, the textile and garment sector, with exports of US$40 billion, is expected to decline by US$3.5 billion to US$4 billion. It was previously thought to decline by US$6 billion to US$7 billion.
As a result, the export value in October reached US$26.7 billion, a year-on-year increase of 9.9%, and the trade surplus reached US$2.2 billion. Exports in the first 10 months of this year reached US$229.27 billion, a year-on-year increase of 4.7% (an increase of 8.3% in the same period last year). Among them, Vietnam’s domestic economic field increased by 0.7%, accounting for nearly 28.7% of total exports; the foreign investment field (including crude oil) increased by 6.5%, accounting for 71.3%.
According to IHS Markit, a business information analysis and provision company, Vietnam’s Purchasing Managers Index (PMI) in October reached 51.8, lower than in September of 52.2, but this is a big improvement in the production area for two consecutive months.
Andrew Huck, economic director of IHS Markit, said that the recently released Purchasing Managers Index proves that as long as our country does a good job in epidemic prevention and control in the past, the production field will be on a solid foundation in the last quarter of this year. The curtain has been lifted and optimism will continue.
According to statistical data, my country’s success in preventing and controlling the epidemic has led to an increase in customer demand. As a result, new orders increased in the second month, and production increased accordingly.
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Orders have returned, but the quantity is not large, because importers are still cautious and the market purchasing power is still weak. Because Vietnam’s main import market is being affected by the epidemic.
In addition, the epidemic has caused payments to slow down, so export companies face more risks.
Ruan Zhizhong, chairman of Jiading Group Co., Ltd., said that before the outbreak, it only took 60 days from delivery to payment. However, after the epidemic spread, the payment time was extended, causing the company to encounter difficulties in capital turnover.
Chairman Ruan Zhizhong said: “Customer payments are slow, so the company encounters many difficulties. The epidemic has greatly affected the company’s financial ability.”
Century Fiber Co., Ltd. is a large enterprise that exports fiber. It has worked hard but it is inevitable that it will decline. In the first three quarters of this year, the company’s net sales revenue reached nearly 1,197 billion VND, and its net profit reached 75 billion VND, down 28% and 53% year-on-year.
Representatives of the company believe that the company’s operations have been affected because the epidemic has reduced demand for textiles and garments. This year, the company’s planned targets are total turnover of 1,798 billion VND and after-tax profit of 130.5 billion VND, equivalent to 80.7% and 60.8% of last year respectively. In other words, the company’s turnover in the first nine months of this year only reached nearly 67% of the annual plan target, and its profit reached nearly 58%.
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In addition, Vietnam’s “Customs News” reported on November 20 that the General Administration of Vietnam Customs recently It was announced that as of the end of October, Vietnam’s total imports reached US$210.3 billion, a slight increase of 0.3% year-on-year, equivalent to a net increase of US$661 million. In the first 10 months, the commodities with large import volumes included electronic parts, raw materials for the production of textiles, clothing and footwear, and machinery and equipment. Among them, the import value of electronic products and parts reached US$51.27 billion, a year-on-year increase of 20.2%, equivalent to a net increase of US$8.61 billion.
South Korea is the largest import market for computers and electronic products, with imports reaching US$14.1 billion, a year-on-year decrease of 4%, a net decrease of US$511 million. Taiwan, China, is the second largest import market, with import volume reaching US$6.3 billion, a year-on-year increase of 38%, and a net increase of US$1.7 billion.
The import value of machinery, equipment, tools and accessories was US$29.77 billion, a year-on-year decrease of 0.6%, but still ranked second. China is the largest import market for such goods, with imports reaching US$13.14 billion, a year-on-year increase of 10%. South Korea followed, with US$4.9 billion, a decrease of 4.1%; Japan ranked third, with US$3.7 billion, a decrease of 6%.
The import volume of textile and clothing raw materials (including cotton, textile fibers and yarns, various types of cloth, and accessories for textiles, clothing, leather and footwear, etc.) reached US$15.46 billion, a year-on-year decrease of 13.5%, net A reduction of US$2.7 billion. China remains the largest import market, accounting for 50% of total imports despite an 8% decline.
In addition, the import of various types of original automobiles is also one of the commodity types that changes greatly, but it is showing a downward trend. As of the end of October, Vietnam had imported a total of 80,110 original vehicles of various types, with a total import volume of US$1.76 billion. The import volume and import value were respectively 2.6% year-on-year.fell by 33.8% and 34.5%. </p
