Export gains to ignite the economy

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The Ministry of Planning and Investment (MPI) reported, at last week’s National Assembly Standing Committee meeting, that emerging economies’ growth, positive signals of developed nations’ economic recovery would “gave more opportunities to Vietnam, particularly its exports to these traditional markets.”

“The dollar rebound, the stable yuan rise and the cooling-down of prices of some goods on the world market are very positive signals for Vietnam’s exports and the country’s bid to rein in inflation,” said MPI Minister Vo Hong Phuc.

An MPI report on Vietnam’s socio-economic situation in 2011 stated that Vietnam’s total export turnover for the year’s first six months was estimated to touch $42.33 billion, up 30.3 per cent against last year’s corresponding period, more than tripling the National Assembly’s 10 per cent target.

Key Vietnamese exports’ price rises help make up half of the 30.3 per cent growth, or $2.7 billion in value, the MPI reported.

 In the last six months, cashew price climbed by 40 per cent, pepper 73.7 per cent, cassava and cassava-based products 32.8 per cent, rubber 61.7 per cent, coffee 57.1 per cent coal 24.3 per cent and crude oil 41 per cent.

Vietnam’s key export markets also expanded in the year’s first half, according to the Ministry of Industry and Trade (MoIT). Exports to the US, the EU, the ASEAN, Japan and China respectively increased 21.3, 49.1, 16.2, 32.4 per cent and 56.6 per cent.

Earlier this year, the MoIT forecast Vietnam’s total export turnover in 2011 would exceed $78 billion, up 10 per cent year-on-year.

However, the National Assembly’s Economic Committee’s chairman Ha Van Hien underscored the high trade deficit, reflecting the country’s continued economic instabilities.

Vietnam’s import value increased 25.8 per cent year-on-year in the first two quarters to $48.99 billion.

“Though trade deficit [in the first six months of 2011] equalled to 15.72 per cent of total export turnover and was lower than the National Assembly’s target of 18 per cent, it remained quite unstable because the drop was contributed by high prices and increased gold exports,” Hien said.

In the year to mid June, Vietnam earned $1.027 billion from exporting gold, comprising 2.47 per cent of the country’s total export turnovers.

“If gold exports were not added to the total export turnover, the trade deficit in this period would be $7.5 billion, equalling to 18 per cent of the total export turnover,” Hien said.