Exports a bright spot amid economic gloom

Jackets are produced at Hoa Tho Textile-Garment Company for export. Export continues to be a bright spot in the Vietnamese economy. — VNA/VNS Photo Trong Dat

HCM CITY(VNS) — Export continues to be a bright spot in the Vietnamese economy despite several difficulties caused by the ongoing economic slump, a report carried by the Sai Gon Giai Phong newspaper said last week.

It cited statistics from the General Customs Office as saying the country's total import export turnover in the first 15 days of October was US$9.79 billion, achieving a total of $180 billion, a 12.3 per cent year-on-year increase.

Of this figure, exports accounted for $88.2 billion, up 18.5 per cent year-on-year.

According to the Ministry of Industry and Trade, export turnover can reach $113 billion by the end of this year, up 16.6 per cent ove the last year, and exceed the target set by the National Assembly.

Export leaders include: the textile and garment industry with $11.7 billion as of October 15, up 7.3 per cent year-on-year; telephones and accessories with $9.2 billion, up 102 per cent; crude oil with $6.6 billion, up 14 per cent; computers, electronic products and accessories with $5.7 billion, up 82.8 per cent; and vehicles and accessories with $3.5 billion, up 95 per cent.

Exports were dominated by foreign-invested enterprises that achieved a turnover of $48 billion, up 36 per cent year-on-year, accounting for 55 per cent of the nation's total exports.

The bad news

Though exports have the potential to exceed the target this year, representatives of many major sectors say tough times are ahead.

The cashew industry, for instance, which achieved an export turnover of $1 billion in the first nine months of the year, is already struggling.

Nguyen Duc Thanh, chairman of the Viet Nam Cashew Association, said production has fallen short of expectations by 30 per cent and prices have slumped by 30 per cent over last year.

Many of almost 300 enterprises and a thousand processing factories in the industry have already gone bankrupt this year, he said.

Truong Dinh Hoe, general secretary of the Viet Nam Association of Seafood Exporters and Producers (VASEP), said seafood exports reached $4.5 billion in the first nine months and is expected to reach $6.5 billion this year.

But the global economic slowdown and stiff competition from India and Thailand was making things very difficult for Vietnamese enterprises, he said.

Furthermore, domestic enterprises had to contend with difficulties in accessing credit as well as increasing raw material costs and transportation fees.— VNS