Vietnam’s exports in May up 14.4 percent

The country’s total export turnover is estimated at $6.1 billion in May, a month on month rise of 14.4 percent while imports reached $6.85 billion, up 5.5 percent, representing the trade gap of $750 million–the lowest level compared with first months of 2010, reported general Statistic Office (GSO).

During the period from January to May, Vietnam earned nearly $25.83 billion from exports, growing by 12.6 percent year-on-year and spent total $31.2 billion on imports.

Factually, Vietnam has to import most materials for production so the increased prices of the global market will facilitate exports partially but harm product imports of Vietnam. For example, the global price of cotton soared 25 percent year-on-year but export price of Vietnam made apparel product only rose by 5-10 percent, similarly material plastic price went up 43.7 percent but the plastic product export price of Vietnam increased 20 percent only.

Obstacle for agricultural products: Vietnam previously was a big export of agricultural products to US due the agricultural advantages but now more US made agricultural products are flowing to Vietnam. According to statistics of US Department of Agriculture (USDA), in Jan-March, Vietnam’s US made agricultural product trade deficit for the first time in the last five years was recorded at $78 million. Vietnam’s agricultural export position in the US market seemed to change when the domestic market has more and more regulations requiring exports to come through.

Many key export items of Vietnam, including rice, shrimp saw a flat trend in export to US. Even, the export turnover of black tiger shrimp in the first quarter of 2010 fell 1 percent, rice plunging 78 percent.
Lately Vietnam has sued US before WTO of applying “zeroing” treatment on Vietnam’s processed shrimp. At this time US is imposing the antidumping tariff on Vietnam’s frozen black tiger shrimp.

Vietnam’s tra are suffering the antidumping tariff on US market but the product is on danger to face another risk. According to US Farm Bill 2008, the USDA will remove the concept of Vietnam’s tra fish to the list of catfish that US is applying the comprehensive food safety and hygiene supervision (from breeding, processing to distribution).

The agricultural products saw a rise in US market in the recent time bringing in the 2009 export turnover of $70 million, and tea with annual $5 billion earnings.

Dr Trinh Minh Anh, former member of the government’s negotiation team as Vietnam joined WTO and present vice chief of National Committee on International Economic Cooperation said that Vietnam’s agricultural products exports to US face a lot of stricter requirements that cause disadvantages for a developing country like Vietnam.

Typically, “dragon fruit” product had to undergo a process of examination and supervision under tough regulations to enter US market.
Vietnam continues proposing US to promote the licensing process as for other fresh fruits such as litchi, longan, or rambutan.

If US gives Vietnam generalised System of Preference (GSP) and recognises Vietnam to be a market based economy, Vietnam’s agricultural export to US will be more convenient, the doctor expected.

Cong thuong

Tags: Vietnam exports, Vietnam trade

Posted by VBN on Jun 2 2010. Filed under HEADLINES, Import-Export, Import-Export turnover. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry