Miracles in Vietnam export
As stated above, in 2020 Vietnam’s export enjoyed a positive growth rate of 6.5%, equivalent to USD 281.5 billion. This figure, when considering the current context of Covid-19 pandemic, is deemed as a miracle. Such an achievement is also attributable to the great efforts of all enterprises with viable solutions to adjust themselves to overcome challenges and make good us of opportunities from FTA partners.
At the end of 2020, Nafoods Group has reached a record consolidated revenue of VND 1,215 billion, up 13.6% compared with that in 2019. The company’s profit after tax is estimated at VND 60 billion, up 25.2% year-on-year. To obtain such good results, it is noticeable that the company has manufactured and exported high-quality products to conquer markets signing FTA with Vietnam, such as EU, EAEU,…
Fortunately, the difficulties from the global pandemic only worried Vietnam enterprises in a short-term, after which they have come up with effective ideas to implement and sustain connection to maintain manufacture, business and international trade transactions.
Regarding the textile industry, although its export turnover only equals to USD 35.2 billion – a decrease of USD 4 billion compared with 2019, it suffers the least among all garment big exporters like India, China,…
Mr. Le Tien Truong, the Chairman of Vinatex, shared that in 2020, the Group’s export volume went down by 10%, with profit down by 15%, however, the salaries for employees only decreased by 4.5%, being VND 8.05 million/person/month on average. Moreover, the Group can still keep jobs for 150,000 labors with 12% reduction in working hours.
By making a good use of various FTAs in which Vietnam is a member, such as Vietnam – Korea, Vietnam – EAEU, CPTPP, EVFTA,…, the textile industry has enjoyed a speedy development in export turnover, specifically: in 2016 – USD 11.1 billion, while in 2019 – USD 16.9 billion. Besides, the export turnover of this sector jumped from 4th ranking in 2016 to 3rd ranking (exceeding India, only behind China and Bangladesh).
Take advantage of FTAs to the fullest
In 2021, the Government has set a goal to achieve a growth rate of 4-5% in export-import with export surplus maintaining at the same rate as in 2020. This is actually not easy to obtain, especially when Covid-19 continues to hit many main trading partners badly, negatively affecting international demand.
However, considering that Vietnam enterprises have been challenged and acquainted themselves with “new normal” context, it is highly possible that Vietnam will complete the goals well in 2021.
Since 01 Jan 2021, Vietnam has had a new bilateral FTA with the UK coming into force. The total FTAs that Vietnam joined have amounted up to 15.
At the conference of launching new tasks in 2020 for the industry and commerce sector, the Prime Minister, Mr. Nguyen Xuan Phuc, expressed his opinion:
Vietnam is one of the most open economy with commercial relationships established with over 230 markets, and FTAs signed with 60 economies, facilitating domestic enterprises to expand their market, connecting and deeply participating in the value chain, as well as global manufacture network.
For each company, well utilizing FTAs plays a vital role in defining and developing its business strategy. Many companies, like those in seafood production, shall focus more on the EU market after EVFTA takes effect with a huge number of preferential taxes.
Edited by: Dandelion