Workers making products for export at a factory of Hưng Việt Garment JSC. — VNA/VNS Photo

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HÀ NỘI — Amid countries around the world, especially major economies, facing recessions due to soaring inflation, it is crucial to promote trade through trade offices in foreign countries, especially those that have signed treaties with Việt Nam, including the United Kingdom-Vietnam Free Trade Agreement (UKVFTA).

High inflation has forced some central banks to tighten pandemic-era monetary policies, placing many economies, including major ones such as the US, the UK, and the European Union, at risk of recession.

In July, the Federal Reserve of the world’s leading economy raised its interest rates by 0.75 percentage points for the second straight time.

Meanwhile, early in August, the Bank of England hiked rates by 50 basis points, the largest single increase since 1995, and projected the UK’s longest recession since the global financial crisis.

The slowdown of the major economies’ growth may affect the growth of the world economy, affecting import and export activities.

Vietnamese trade offices in international markets have helped make significant achievements in import and export activity.

With the new developments in the world economy, it requires even closer and more effective coordination between the systems of the trade offices in foreign countries and related parties.

At a conference at the end of August on trade promotion in foreign markets, Vũ Bá Phú, director of the Trade Promotion Agency, suggested that trade offices provide monthly updates on market developments, regulations, and policies, new adjustment policies of the host markets that have an impact on trade with Việt Nam and recommendations trade promotion activities. This would act as a basis for localities, associations, and enterprises to develop and adjust production, business strategies and plans.

Nguyễn Cảnh Cường, trade counsellor at Việt Nam's Embassy to the UK, said that import demand of the UK market was stable and tended to inch higher, except during the pandemic period.

Before COVID-19, Việt Nam’s shipment accounted for less than 1 per cent of the UK’s total import turnover. There is still plenty of room for Vietnamese products to penetrate the market, especially after the UKVFTA was enacted in early 2021.

According to the MoIT, in the first eight months of 2022, Việt Nam's total export turnover of goods was estimated at US$250.8 billion, up 17.3 per cent year-on-year.

The trade surplus in August was estimated at $2.42 billion.

In the first eight months, the trade surplus was expected at $3.96 billion, while in the same period last year, the trade deficit was $3.52 billion. —VNS