Electrical cable exports fizzle this year

Export turnover of electrical wire and cable reached US$479 million in the first five months of this year, down 2 per cent over the same period last year due to a sharp decrease in shipments to Japan and the US during the past two months, the General Statistics Office reported.

After a 16.54 per cent increase to $341.1 million in the first quarter, exports of electrical wire and cable dropped sharply in March and April in the wake of the earthquake in Japan.

In April alone, export turnover of the products was only $90 million, down 28.6 per cent over the previous month. Japan topped the list with a decline of more than 60 per cent, followed by the US market – one of the largest import markets of Japanese autos – with a drop of 25 per cent.

General secretary of the HCM City Electric Wire and Cable Association Luong Cong Huynh said that as up to 70 per cent of Viet Nam’s electrical wire and cable exports were used in the automobile industry, the export of the products to Japan had dropped sharply as the earthquake had seriously damaged the Japanese automobile industry.

Though forecasting that the worst was over, with exports in May inching up by $3 million against the previous month to $93 million, industry insiders said it would be difficult for the domestic electrical wire and cable industry to ensure a surge in export turnover as had been achieved last year. The industry’s export value surged more than 48 per cent to $1.3 billion last year, accounting for 1.8 per cent of the country’s total export revenue. Japan was the largest importer with $920 million, up 43.9 per cent over the previous year. The US followed with $153.8 million, up 68.6 per cent.

To overcome the difficulties, Huynh recommended that domestic electrical wire and cable producers should not depend mainly on the key markets of Japan and the US but boost exports to other markets.

In addition to Japan and the US, Viet Nam’s electrical wire and cable is also exported to South Korea, China, Singapore, the Philippines, Laos and Cambodia.

Also, instead of focusing only on churning out products for the automobile industry, domestic electrical wire and cable producers should also diversify rapidly so that their products could be used in the civil sector and other industries, Huynh said. — VNS

Tags: Electrical cable, Vietnam Electrical cable exports