Import and export of goods in the first 7 months of the year nearly reached the 450 billion USD mark

According to the General Statistics Office, import and export of goods in the first 7 months of the year reached 439.88 billion USD, the trade balance of goods is estimated to have a trade surplus of 14.08 billion USD.

Import and export increase

The latest report released by the General Statistics Office on the morning of July 29 showed that in July, the total import and export turnover of goods was estimated at 69.72 billion USD, up 8.7% over the previous month and up 21.8% over the same period last year.

Of which, the export turnover of goods in July 2024 is estimated at 35.92 billion USD, up 6.7% over the previous month and up 19.1% over the same period last year. In the first seven months of 2024, the export turnover of goods is estimated at 226.98 billion USD, up 15.7% over the same period last year.

Of which, the domestic economic sector reached 63.08 billion USD, up 21.1%, accounting for 27.8% of total export turnover; the foreign-invested sector (including crude oil) reached 163.9 billion USD, up 13.8%, accounting for 72.2%.

Regarding imports, the import turnover of goods in July 2024 is estimated at 33.8 billion USD, up 11% over the previous month and up 24.7% over the same period last year. In the first seven months of 2024, the import turnover of goods is estimated at 212.9 billion USD, up 18.5% over the same period last year, of which the domestic economic sector reached 78 billion USD, up 21.5%; the foreign-invested sector reached 134.9 billion USD, up 16.9%.

The structure of imported goods in the first seven months focused heavily on production materials, estimated at 199.88 billion USD, accounting for 93.9%.

Regarding the import and export market of goods in the first seven months of 2024, the United States is Vietnam's largest export market with an estimated turnover of 66.1 billion USD. China is Vietnam's largest import market with an estimated turnover of 79.2 billion USD.

Import and export continue to flourish in the first 7 months of 2024

The trade balance of goods in July is estimated to have a trade surplus of 2.12 billion USD. In the first seven months of 2024, the trade balance of goods is estimated to have a trade surplus of 14.08 billion USD (the same period last year had a trade surplus of 16.5 billion USD). Of which, the domestic economic sector had a trade deficit of 14.92 billion USD; the foreign-invested sector (including crude oil) had a trade surplus of 29 billion USD.

Textiles are one of the items. export Vietnam's mainstay. According to the Vietnam National Textile and Garment Group (Vinatex), textile and garment export turnover has increased since the beginning of the year, specifically in the second quarter of 2024, it grew by 11.2% compared to the previous quarter. The increase in orders has helped some textile and garment enterprises achieve remarkable business results.

Specifically, Hoa Tho Textile and Garment Joint Stock Company's profit in the second quarter skyrocketed by 110%, always bringing in regular cash dividends for Vinatex. This is also the highest profit this enterprise has achieved in 7 quarters. According to records, the enterprise's net revenue reached VND 1,094 billion, up 5% over the same period last year. The cost of goods sold decreased slightly by 1%, helping the gross profit margin improve from 9% in the second quarter of 2023 to 14%. Gross profit thus increased sharply by 69% over the same period to VND 151 billion.

In addition, financial revenue and financial expenses recorded VND 25 billion and VND 22 billion, respectively, up 35% and 32% over the same period. Deducting other expenses, Hoa Tho Textile and Garment's after-tax profit reached VND 69 billion, up 110% over the same period in 2023, the highest profit in the past 7 quarters.

Similarly, TNG Investment and Trading Joint Stock Company has just announced its Financial Report for the second quarter of 2024 with net sales revenue reaching VND 2,173.6 billion, up 8.7% over the same period last year. After deducting expenses, TNG had a net profit of VND 86.3 billion, up 61.6% over the second quarter of 2023. The Company's positive business results come from an improved gross profit margin of 16.4% compared to 12% in the same period of 2023. In the first 6 months of the year, the Company had a net profit of more than VND 129 billion, up 37.7%.

Thanks to focusing on exploiting difficult product lines, as well as expanding export markets; at the same time optimizing costs by increasing the use of automatic machinery and equipment in operation and production, the recent business results have been very positive.

Mr. Nguyen Viet Hanh - Director of Thanh Hung Garment Joint Stock Company shared that compared to the same period in 2023, export garment orders increased by 20-30%, and order value also increased by 5-10%. Currently, the company has invested in a number of additional sewing lines and modern equipment to meet production needs, striving to achieve revenue in 2024 (equivalent to 4.5 million USD) ahead of schedule.

Or with seafood products, according to the Vietnam Trade Office in Singapore, the export turnover of Vietnamese seafood to the Singapore market in the first 6 months of 2024 reached nearly 51.7 million SGD, accounting for a market share of 9.46%. Statistics show that for the first time, Vietnamese seafood has maintained its position as the 5th largest partner for 2 consecutive quarters.

According to Mr. Cao Xuan Thang - Vietnam Trade Counselor in Singapore, in order to increase sustainable market share, improve the ranking and export value of Vietnam's seafood to Singapore, Vietnamese enterprises need to continue to improve the quality of seafood products, although there have been no unfortunate incidents related to food hygiene and safety reported to the Trade Office.

On the other hand, high inflation is also a big challenge for the seafood industry of countries exporting to Singapore, including Vietnam. In addition, conflicts in some regions of the world also cause shipping costs to increase sharply. Countries that can take advantage of logistics and reduce costs will create a greater competitive advantage in exporting goods.

What opportunities for the last months of the year?

Speaking to reporters of the Industry and Trade Newspaper, Dr. Le Quoc Phuong - Former Deputy Director of the Industry and Trade Information Center - Ministry of Industry and Trade said that Vietnamese enterprises have prepared and are currently taking relatively good advantage of FTAs. Therefore, the target of 6% growth in export turnover in 2024 is completely feasible.

Many Vietnamese products are in the top of exports such as rice, pepper, textiles, etc., which means that Vietnam can be classified as one of the export powers. Therefore, it is necessary to behave in accordance with the position of a power. That is, there can be no delay in bringing products and goods to meet the increasingly strict standards of the import market.

In addition, businesses need to diversify their markets, bringing their products to niche markets with great potential such as the Middle East, Africa, South America, etc. in addition to traditional markets. This will reduce the risk of products being dependent on one market.

Regarding the export situation, Mr. Tran Thanh Hai - Deputy Director of the Import-Export Department - Ministry of Industry and Trade said that Vietnam's import-export situation has been improving, bringing positive signals. Localities have had specific plans to support and accompany businesses in expanding their markets. At the same time, businesses are also proactive in trade issues, such as decisiveness, increasing Vietnam's import-export.

The Ministry of Industry and Trade is speeding up the progress and making efforts to conclude the negotiations on the Comprehensive Economic Partnership Agreement (CEPA) between Vietnam and the UAE as soon as possible. In addition, it is implementing various forms, both in person and online, to introduce the advantages and incentives from the implemented FTAs.

Furthermore, units of the Ministry of Industry and Trade continue to promptly inform industry associations and businesses about developments in the export market so that businesses can promptly adjust their production plans accordingly and orient their search for orders from the markets.

On the other hand, the Ministry of Industry and Trade continues to innovate trade promotion; promote at the highest level the digital transformation program in trade promotion and connect Vietnamese enterprises and their products to the Vietnam Trade Office system in countries and territories. Thereby, promoting products and seeking opportunities to expand the market.

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