Seize opportunities to achieve 6% export target in 2024

Export markets recover but not yet sustainable

According to the General Statistics Office, the stronger recovery in export orders in March helped the footwear industry earn export revenue of 1.7 billion USD, the highest level since the beginning of the year, bringing total exports in the first quarter of 2024 to 4.85 billion USD, up 11.7% over the same period last year. If including the export turnover of handbags of 866 million USD (up 5.2% over the same period) in the first quarter of 2024, the entire footwear industry brought in a turnover of more than 5.7 billion USD.

Đơn hàng đã trở lại với nhiều doanh nghiệp dệt may, da giày

Orders have returned to many textile, garment and footwear businesses.

Exports grew by double digits in the first quarter, but the Vietnam Leather, Footwear and Handbag Association (Lefaso) said that market difficulties still exist because total demand has not fully recovered. Vietnamese businesses still have to closely monitor market information to have appropriate production and business plans, taking full advantage of opportunities from markets with Free Trade Agreements (FTAs) to increase tariff incentives.

Not to mention, a series of regulations on ecological products, extended producer responsibility, supply chain traceability, requirements on carbon emission reduction for manufactured products... put forth by EU importers are creating great challenges for links in the supply chain, including Vietnam.

Along with footwear, in the textile and garment sector, according to Mr. Cao Huu Hieu - General Director of Vietnam Textile and Garment Group (Vinatex), the total demand for textiles and garments in the world in 2024 is expected to be at 715 billion USD, a slight increase compared to 2023 but still lower than 2022.

Therefore, the group's key task in 2024 is to consistently and best implement the proposed solutions and continue to monitor and forecast the situation to respond flexibly.

In any case, when identifying long-term difficulties, conventional solutions are not effective, it is necessary to think about restructuring. Review the organizational model, optimize the apparatus, minimize the rate of indirect labor, and focus on market work.

For the wood processing and export industry, by the end of the first quarter of 2024, according to statistics from the General Department of Customs, wood and wood product exports earned 3.4 billion USD, an increase of 18.9% over the same period in 2023. Of which, the export value of wood products is estimated at 2.3 billion USD, an increase of 22.9% over the same period in 2023. The favorable start in the first months of the year with increased orders, wood industry enterprises accelerating production to meet export progress has opened up positive signals and brought expectations for Vietnam's wood industry in 2024.

Although the early 2024 signal is quite optimistic, according to Mr. Do Xuan Lap - Chairman of the Vietnam Timber and Forest Products Association, in the US market, regulations on the origin of raw wood materials are increasingly stricter; The US Department of Commerce is amending and supplementing a total of 22 contents related to a number of regulations in anti-dumping and anti-subsidy investigations, including ways to determine a number of new subsidies such as export insurance, debt cancellation, direct taxes, etc.

In the EU market, the EU Deforestation Regulation (also known as EUDR) of the European Union will come into effect in December 2024. With the regulation on determining the origin of Vietnam's wood, there are currently no specific regulations. The Indian market applies a new factory assessment standard, the BIS standard, applied in early 2024. Causing difficulties for Vietnamese businesses. Meanwhile, in the Japanese market, the requirement for Vietnamese wood and wood products exported to this market to use wood with clear origin is increasingly high;...

Comprehensive implementation of many solutions to support import and export of goods

According to the report of the Ministry of Industry and Trade, in the first quarter of 2024, goods exports are estimated to reach 93.06 billion USD, an increase of 17% over the same period last year. In the first quarter of 2024, exports grew strongly and evenly in all three groups of goods: agriculture, forestry and fishery; processing and manufacturing industry; and mineral fuels.

In 2024, the Ministry of Industry and Trade sets an export growth target of 6%

According to experts, in 2024, the Ministry of Industry and Trade sets a target of 6% export growth, equivalent to an export turnover of 377 billion USD. To achieve this target, the average export turnover for each remaining quarter of the year must reach 94.67 billion USD - a challenging figure.

The Ministry of Industry and Trade also assessed that, in general, Vietnam's import and export activities in 2024, especially exports to key markets such as Europe and America, will have both advantages and face challenges.

Accordingly, in terms of advantages, the existing FTAs with partners/markets continue to have a positive impact, maintaining Vietnam's advantages in trade and investment activities. In addition, the demand of the world market in general and the European and American markets in particular has gradually recovered as inflation has begun to decrease since the end of 2023 and is likely to approach the target level set by Central Banks for 2024 (ECB and FED - 2%).

The continued promotion of supply source diversification, supply chain diversification, and investment diversification by developed industrial countries will help Vietnam become an important production and export center in the global value chain. Countries in Europe and America are promoting green economic development, digital transformation, and circular economy, opening up many new cooperation opportunities as well as providing more credit and technology support for Vietnam...

Regarding difficulties , the Ministry of Industry and Trade said that the global economy is entering a new period with many risks and challenges and is unpredictable; economic growth in the world and in the European and American countries in 2024 is forecast to be lower than in 2023. In addition, geopolitical conflicts continue to persist and instability continues to threaten to spread to other regions.

The trend of de-globalization continues to rise strongly. Protectionist policies of countries are increasing. The diversification of supply sources outside of China, focusing on some partners near the market and partners equivalent to Vietnam such as Türkiye, Mexico, India, Indonesia, ... will increase competition in Vietnam's export markets...

To focus on exports in the second quarter of 2024 and the remaining months of the year to complete the 2024 plan, which is to increase exports by 6%, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said that as the leading agency in managing and operating import-export activities, the Ministry of Industry and Trade will continue to closely monitor market developments and policy changes of partners to propose appropriate solutions, diversifying traditional and new export markets.

At the same time, continue to promptly inform industry associations about developments in export markets so that businesses can promptly adjust their production plans accordingly and orient their search for orders from markets; regularly maintain trade promotion conferences with the Vietnamese Trade Office system abroad.

In addition, direct the Vietnam Trade Office system in market areas to regularly update information on foreign market situations; regulations, standards, and conditions of foreign markets that may affect Vietnam's import and export activities and make recommendations to localities, associations, and import-export enterprises.

On the other hand, effectively exploit FTAs, accelerate negotiations, sign FTAs, and establish new economic links to diversify markets, supply chains, and boost exports; develop logistics services; support businesses to strongly shift to official exports associated with brand building; enhance capacity in trade defense, perfect the legal system, institutions, and inter-sectoral and local coordination mechanisms;...

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