Vietnamese durian has a new strong competitor, the UK increases cashew nut purchases thanks to the UKVFTA, Vietnam is in the top 14 countries with the highest export/GDP ratio in the world... are the outstanding export news from June 17-23.
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| In addition to Thailand and the Philippines, Vietnamese durian will have more competitors in the Chinese market of more than a billion people. (Source: Vietnam Agriculture Newspaper) |
Vietnamese durian has another strong competitor
Durian is one of the agricultural products favored by the billion-people Chinese market. Last April, Vietnam surpassed Thailand for the first time in exporting this fruit to China. In the past two years, the Chinese market has been "buying" the goods, so farmers have been able to sell durian at high prices.
According to statistics from the General Administration of Customs of China, in the first 4 months of this year, Vietnamese durian accounted for 39.2% of the total fresh durian imported by this country, an increase of 25.9 percentage points compared to the same period in 2023. Meanwhile, the proportion of imports from Thailand decreased to 60% of China's total imports, equivalent to a decrease of 26.7 percentage points.
However, in addition to Thailand and the Philippines, Vietnamese durian will have more competitors in this market of more than a billion people. Because, from June 19, fresh durian from Malaysia will be officially exported to China after the two countries signed a protocol on phytosanitary requirements for durian. Previously, Malaysia was only allowed to export frozen durian to the Chinese market.
Malaysia's durian export market to China has been expanded. Datuk Seri Mohamad Sabu - Minister of Agriculture and Food Security of Malaysia hopes that this Protocol will promote the domestic durian industry and increase the value of agricultural exports. At the same time, he expressed his belief that the above Protocol will create more opportunities for more than 63,000 durian growers nationwide.
During the period 2018 - 2022, the total export value of Malaysia's durian increased by 256.3%. In 2022, Malaysia's durian exports recorded a value of 1.14 billion Ringgit (250 million USD). China is the main market for Malaysian durian, with the export value reaching 887 million Ringgit (188 million USD) in 2022. Mr. Mohamad Sabu expects the export value of Malaysia's durian to China to increase to 1.8 billion Ringgit (380 million USD) by 2030.
Most durian farms in Malaysia grow specialty varieties similar to Musang King. Therefore, Malaysian durians will stand out in the high-end segment of the international market. Minister Mohamad Sabu said that Malaysia has the potential to gain a significant market share in China thanks to Musang King durian. “If we start planting durian now, we can reap the benefits in five or six years,” he said, stressing that farmers can grow any durian variety as long as they ensure export quality.
The presence of fresh durian from Malaysia will increase the heat of competition in the Chinese market. Previously, only 3 countries were allowed to export fresh durian to the world's second largest economy: Thailand, Vietnam and the Philippines.
Malaysia’s durian production is lower than that of Thailand and Vietnam. However, Malaysia has an advantage in high-quality durian varieties. The country is home to the Musang King durian, known as the “king of durians” for its strong aroma and golden-yellow flesh.
Regarding this issue, Mr. Dang Phuc Nguyen, General Secretary of the Vietnam Fruit and Vegetable Association, said that up to now, China is still the world's largest durian consumer market. The size of the durian market in this country increases sharply every year and can "contract" all durian production in Southeast Asian countries.
However, among the four countries that are allowed to officially export fresh durian to China, Vietnam still has many advantages. The reason is that the durian harvest season in Malaysia, Thailand and the Philippines only lasts a few months in the middle of the year, while Vietnam harvests in a spread-out manner, so there are exports every season.
Thanks to the push of UKVFTA, the UK increases cashew purchases
The Import-Export Department (Ministry of Industry and Trade) cited data from the General Department of Customs, saying that in May 2024, Vietnam exported 67.71 thousand tons of cashew nuts, worth 370.34 million USD, up 1.0% in volume and 3.3% in value compared to April 2024, up 18.1% in volume and 9.0% in value compared to May 2023.
In the first 5 months of 2024, Vietnam exported 285.1 thousand tons of cashew nuts, worth 1.53 billion USD, up 29.5% in volume and 18.5% in value over the same period last year.
In May 2024, Vietnam increased cashew nut exports to most markets, except the UK and Canada. In the first 5 months of 2024, Vietnam increased cashew nut exports to most markets, except Saudi Arabia. Notably, Vietnam's cashew nut exports to many major markets recorded high growth rates such as Russia, China, Germany, etc.
Among the 10 largest cashew nut export markets of Vietnam in May and the first 5 months of 2024, the United States ranked first with an export volume of 75,072 thousand tons and a value of over 399 million USD. Second place was China with 53,334 thousand tons and over 289 million USD; the Netherlands ranked third with 22,088 thousand tons and over 122 million USD; Germany ranked fourth with over 9 thousand tons and a turnover of over 48.6 million USD; the United Arab Emirates ranked fifth with 8.3 thousand tons and a value of over 46.3 million USD.
The next positions include the UK, Canada, Australia, Saudi Arabia, Russia. For the UK market alone, according to the General Department of Customs, the export turnover of cashew nuts to this market reached more than 8.1 million tons with a value of more than 40.1 million USD, up 13% in volume and 5.8% in value compared to the same period last year. This is also the 6th largest market among Vietnam's cashew nut export markets.
According to the Department of European and American Markets (Ministry of Industry and Trade), the UK is currently the 9th largest export market in the world and the 4th largest of Vietnam in Europe and America. Since the two countries announced the elevation of their strategic partnership in 2010, according to Vietnam Customs, trade between the two countries has grown more than 3 times, reaching 6.84 billion USD in 2022.
Especially with the UKVFTA bilateral free trade agreement officially coming into effect from May 1, 2021 and most recently the UK officially signing the agreement to join the CPTPP Agreement on July 16, 2023, these will be strong driving forces to promote two-way economic - trade - investment relations to continue to develop more strongly in the coming time.
Vietnam is in the top 14 countries with the highest export/GDP ratio in the world.
According to Mr. Bui Huy Son - Director of the Department of Planning and Finance (Ministry of Industry and Trade), the export turnover of goods in the first 6 months of the year is estimated at 188.97 billion USD, an increase of 13.8% over the same period last year (the same period in 2023 decreased by 11.3%).
The export of the key group of processing and manufacturing industry is estimated at 159.92 billion USD, accounting for 84.63% of total export turnover and increasing by 13.8% over the same period in 2023 (same period decreased by 12.6%). Agricultural products continue to be a bright spot in terms of export growth rate, increasing by 18.8% over the same period in 2023 (same period decreased by 2.3%), total export turnover is estimated at 18.21 billion USD in the first 6 months of 2024.
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| Export turnover of goods in the first 6 months of the year is estimated at 188.97 billion USD, up 13.8% over the same period last year (Source: Industry and Trade Newspaper) |
Regarding fruits and vegetables, the Vietnam Fruit and Vegetable Association said that according to estimates from the General Department of Customs, in the first half of 2024, fruit and vegetable exports reached 3.4 billion USD, an increase of 28% over the same period last year. Of which, durian, dragon fruit, banana and longan are the fruits that contribute greatly to the growth of fruit and vegetable exports.
Also according to the Ministry of Industry and Trade, in the first 6 months of the year, the total import-export turnover of goods is estimated at 369.59 billion USD, up 16.03% over the same period last year. The trade balance of goods continued to have a surplus with an estimated trade surplus of 8.4 billion USD.
Mr. Nguyen Duc Hung Linh - Consulting Director of Think Future Consultancy - said that thanks to the recovery of exports, Vietnam's economic growth (GDP) in the first quarter of 2024 increased to 5.66%, compared to the increase of 3.32% in the first quarter of 2023. The number of applications for unemployment benefits in the first quarter of 2024 also decreased to 168 thousand, the lowest level in 10 quarters, showing an improvement in the employment sector and business activities of enterprises.
Imported iron and steel flooding in, causing difficulties for domestic enterprises
The General Department of Customs said that the import value of iron and steel of all kinds in May reached 1.72 billion USD, up 14.9%, equivalent to an increase of 223 million USD compared to the previous month. Of which, the import value of iron and steel of all kinds was 1.13 million USD, up 17.9% with a volume of 1.55 million tons, up 20.6% compared to the previous month.
In the first 5 months of 2024, the country imported 7.48 billion USD of iron and steel of all kinds, an increase of 26.3%, equivalent to an increase of 1.56 billion USD over the same period in 2023 and approximately the import level of 5 months of 2022.
Of which, the import volume of iron and steel of all kinds was 6.92 million tons, an increase of 50.15% with a value of 5.02 billion USD, an increase of 27.6% over the same period in 2023.
Vietnam mainly imports iron and steel of all kinds from the following main markets: China reaching 4.77 billion USD, up 53.8% over the same period in 2023 and up 37.9% over the same period in 2022; South Korea reaching 735 million USD, up 4.6% over the same period in 2023.
The large amount of imported steel, especially steel from China, is causing many difficulties for the domestic manufacturing industry.
According to the Vietnam Steel Association (VSA), with the current recovery momentum, it is forecasted that finished steel production in 2024 could reach 30 million tons, an increase of 7% compared to 2023, but this recovery is uncertain, and steel enterprises still face many difficulties.
The biggest difficulty is that China continues to increase steel exports, Vietnamese steel producers face the risk of losing the domestic market.
According to China Customs data, in the first 5 months of 2024, China exported 45 million tons of steel, up 25% over the same period in 2023. For Vietnam, steel imports from China have nearly reached approximately 4.8 billion USD out of the total import value of 7.48 billion USD in 5 months.
The "oversupply" situation of many domestic steel products along with the increase in imported steel, according to VSA, has made the price competition of domestic finished steel products more fierce.
In addition, the unstable world market and increasing international freight rates also pose many risks for steel industry enterprises.
In a move to protect domestic manufacturing industries from the influx of imported goods, on June 14, 2024, the Ministry of Industry and Trade issued Decision No. 1535/QD-BCT on investigating and applying anti-dumping measures on some galvanized steel products originating from China and South Korea.
Also on June 14, 2024, the Ministry of Industry and Trade also issued a notice on the receipt of a complete and valid dossier requesting an investigation into the application of anti-dumping measures on hot-rolled steel products (HRC) from India and China.
To continue to remove difficulties for the steel industry, the Ministry of Industry and Trade is developing and is expected to soon submit to the Prime Minister for promulgation the Strategy for the development of the Vietnamese steel industry to 2030, with a vision to 2050.
The Ministry is also finalizing the draft to report to the Government to submit to the National Assembly for promulgation of the Law on Key Industrial Development. Accordingly, the long-term goal is to develop the steel industry into a national foundation industry, meeting domestic demand and rapidly increasing exports.
Source: https://baoquocte.vn/xuat-khau-ngay-17-236-sau-rieng-viet-co-them-doi-thu-manh-anh-tang-mua-hat-dieu-nho-luc-day-ukvfta-276026.html
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