Vietnam's 2022 export turnover to hit US$368 billion, above the year's target

Vietnam’s export turnover in 2022 is set to expand by 9.46% year on year to $368 billion, exceeding the growth rate of 8% set by the Government.

Processing catfish for exports in Cantho. Photo: Giang Lam

The Ministry of Industry and Trade (MoIT) revealed the figures in a report on the country’s trade outlook for the 2022-2023 period.

For this year, the MoIT expects the trade surplus to stay around $1 billion in 2022, reaching the Government’s target.

According to the ministry, Vietnam’s trade turnover in the six months stood at $371.3 billion, in which exports hit $186 billion, up 17.3% year-on-year.

The domestic enterprises recorded export growth of 19.5% during the period, higher than the rate of 16.6% of their foreign-invested peers.

“This shows the efforts from local enterprises in business recovery and integration into the global value chains amid difficult economic environment,” stated the report.

The MoIT also noted over 29 categories of export products having a turnover of over $1 billion,   four more than in the same period of last year.

The report said local businesses are taking good advantage of free trade agreements (FTAs) that Vietnam is a part of, especially new-generation trade deals, for exports.

During the first six months of 2022, the exports under the certificate of origin (C/O) under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) fetched an estimated  $1.32 billion, up 22.1% year-on-year; and shipments under the EUR.1 form to EU via the EU-Vietnam Free Trade Agreement (EVFTA) brought in $5.84 billion, up 32.1%.

This contributed to a  trade surplus of $743 million during the period, and helped stabilize macro-economic conditions amid the volatile global economic situation, it added.

For the remainder of the year, the ministry expected the global economy to continue facing uncertainties, including possible recession in major economies with high inflation.

“This could pose negative impacts on world’s demand for non-essential goods, and subsequently global trade, including that of Vietnam,” added the ministry.

The MoIT, however, forecasts a bright outlook for Vietnam’s trade in 2022, thanks to the country’s vast network of FTAs, especially CPTPP, EVFTA, UKVFTA, or RCEP.

“Trade performance would continue to stay bright in the coming months,” said the ministry.

For next year, the report expects export growth to expand by 8% against 2022, and help Vietnam maintain a positive trade surplus.

To realize these goals, the MoIT would closely monitor the Covid-19 situation and possible changes in trade policies in Vietnam’s major markets to avoid possible legal risks.

“It is essential for local firms to take advantage of free trade agreements, especially CPTPP, EVFTA, and UKVFTA to maximize their preferential treatments and increase trade turnover,” it said.

Meanwhile, the MoIT would further promote trade conferences in both domestic and foreign markets via online platforms; simplify administrative formalities, especially customs procedures via the national one-stop-shop portal, or the ASEAN single window, to create favorable conditions for businesses and associations taking part in import-export activities.

The MoIT also expects to support the development of domestic companies to reduce the country’s export dependence on foreign companies.