Measures needed to sustain export growth amid COVID-19 resurgence

The resurgence of COVID-19 in Vietnam has strongly affected the operations of many businesses, causing exports in June to fall slightly from the previous month but the figure still remained 25% higher than a year earlier.

Overall, exports in the first half of 2021 were estimated at US$157.63 billion, up 28.4% over the same period last year.

The United States remained the largest buyer of Vietnamese goods with US$44.9 billion, up 42.6%, followed by China with US$24.4 billion, up 24%, and the EU with US$19.3 billion, up 17.4%. Exports to other major markets such as ASEAN, the Republic of Korea and Japan also recorded strong growth.

Such figures show that Vietnamese exports to established markets, especially those having free trade agreements with Vietnam, have all sustained stable growth.

According to the Ministry of Industry and Trade, there remains much room for exports to grow as free trade agreements are being gradually implemented in a comprehensive and effective manner. Trade pacts such as the CPTPP and EVFTA will continue to help Vietnamese goods penetrate deeper into key markets.

In addition, the US and Europe are lifting their restrictions step by step as the pandemic is being brought under control thanks to the vaccination process while global demand for goods is recovering, offering opportunities for Vietnam to bolster its export of consumer goods that are from the country’s strong sectors.

But challenges remain as COVID-19 has been partly brought under control in northern provinces and cities but is spreading to key manufacturing areas in the south such as Ho Chi Minh City, Binh Duong and Dong Nai, Vietnam’s leading export engines.

Globally, Asia has returned to the spotlight as new cases are rising rapidly and countries such as India, Japan and Indonesia still have to tighten restriction measures to prevent the spread of the virus. Even the EU is facing new threats from the Delta variant, which is spreading rapidly in the continent.

To overcome the difficulties and challenges and successfully capitalise on opportunities, enterprises need to constantly improve their product quality, and enhance their competitiveness so as to improve their position in regional value chains.

Furthermore, although free trade agreements provide plenty of opportunities, they are not ready-made meals. Participating in such trade pacts means accepting a larger playing field and daring to face difficulties to seize opportunities.

Therefore, in order to tap into the advantages and ride out the challenges, it is necessary for various agencies and the business community to work together.

Management agencies need to devise specific communication strategies to help businesses have a good grasp of the rules in each trade deal and implement appropriate programmes to help enterprises take advantage of such deals effectively to boost exports.

Source: Nhan Dan Online