What do experts say about the record trade surplus in 2023?

This figure shows the great efforts of businesses in overcoming difficulties, finding export markets, and making export results higher each month than the previous month.

Chuyên gia nói gì về mức xuất siêu kỷ lục của năm 2023?

Trade surplus in 2023 hits record high

Great effort

Speaking to reporters from the Industry and Trade Newspaper, economic expert Vu Vinh Phu said that this year, except for vegetables and rice, which have better export turnover, most other industries have decreased, including key industries such as: Phones, textiles, footwear, etc. Export enterprises are facing difficulties in terms of orders, export prices and negotiations to open new orders.

The reason for this situation is due to the general difficulties of the world situation, so people are tightening their spending. The rising inflation situation has limited the demand for goods. Businesses import less because there is still a lot of inventory after hoarding due to concerns about the spread of Covid-19. Because Vietnam is an open economy, exporting goods to 200 countries and territories, it is natural that exports will face difficulties.

In addition, countries are increasingly erecting non-tariff barriers and demanding higher quality goods that not all businesses can meet. In order to maintain operations and pay workers, many businesses have to accept small orders or accept selling at break-even.

However, Mr. Vu Vinh Phu shared that it must be affirmed that ministries, branches, including the Ministry of Industry and Trade, and associations and enterprises have made great efforts to improve export efficiency.

“ The Ministry of Industry and Trade is the “industry commander”, responsible for state management of import and export and the domestic market. In recent times, to overcome difficulties for exports, the Ministry of Industry and Trade has made efforts to find niche markets and new markets for businesses through negotiations, moving towards signing FTAs with many partners in Africa, the Middle East, etc. In addition, it has actively disseminated information about FTAs so that businesses can continue to dominate traditional markets more deeply ,” said Mr. Vu Vinh Phu.

At the same time, an activity highly appreciated by Mr. Phu is the monthly trade promotion conferences with Vietnamese Trade Offices abroad to help businesses update market information, help introduce and promote the image of Vietnamese goods more deeply. The Ministry of Industry and Trade has continuously disseminated information on changes in markets regarding requirements for product standards, designs, and packaging, especially the Chinese market - one of our country's largest partners. This is also the reason why China is the only market that has maintained positive export growth among our country's key export markets.

In addition, export enterprises, especially rice and vegetable enterprises, have made great efforts to continuously increase export turnover. This is a bright spot not only in the agricultural product group but also in all export product groups of our country.

With such results, the country's trade balance continues to record a trade surplus for the 8th consecutive year with an estimated surplus of nearly 30 billion USD, nearly 3 times higher than in 2022. Mr. Vu Vinh Phu said that this is one of the remarkable results because it has contributed positively to the balance of payments, helping to increase foreign exchange reserves, stabilize exchange rates and other macroeconomic indicators of the economy. This is also a record trade surplus in many years.

What to expect in 2024?

Import-export activities in 2023 are assessed to face numerous difficulties. However, in 2024, when the geopolitical situation is more stable, inflation is controlled and consumer demand increases, import-export activities are expected to recover.

To improve the efficiency of import and export, Mr. Phu suggested that import and export are still facing many difficulties due to high logistics costs. For example, Thailand has a cheaper cost to send goods to China than Vietnam. Therefore, it is necessary to invest in the logistics sector because this is an important factor to improve the competitiveness of products and goods.

In addition, the inflation situation is becoming more and more complicated, so all countries have a common requirement of how to reduce product prices. Therefore, it is necessary to review tax policies to support businesses to reduce prices. Maintain the reputation of exported goods to avoid the situation of "one bad apple spoiling the barrel".

In particular, focusing on the issue of removing difficulties for businesses, Mr. Vu Vinh Phu said: " It is necessary to create conditions for businesses to access low-interest credit sources. Allow businesses to borrow on credit. Continue to reform administrative procedures in import and export to help businesses access simpler and easier procedures. Quickly distinguish legitimate businesses to have appropriate support policies. With this in mind, the Ministry of Industry and Trade's annual announcement of a list of reputable export businesses is very important and necessary."

In particular, policies are only a part, the most important thing is the efforts of enterprises. Enterprises need to pay attention to the quality of exported goods. At the same time, coordinate to build appropriate export strategies according to requirements. Carefully study market information and standards to meet the requirements of the host country market.

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