Vietnam’s exports to face challenges ahead

Although Vietnam’s exports to foreign markets have picked up in recent times, there remain major challenges to overcome, according to economists.

The country’s export turnover reached more than US$19.2 billion in the first three months of the year, representing a 33.7 percent – the highest growth rate in the past years.

However, Vietnam’s export sector still has to cope with fluctuations in the exchange rate, high interest rates, and many additional fees. For example, garment and textile exports to foreign markets are subject to an additional fee of US$60 per container.

The bottom line is that Vietnam’s highly-valued exports are mostly in raw form. There are still shortcomings in Vietnam’s export performance. Therefore, export businesses need proper adjustments to balance supply and demand in the market and perform more effectively.

Meanwhile, Vietnam’s exports to the Republic of Korea’s market reached nearly US$1.2 billion in the first three months of the year, up 114 percent against the same period of last year, according to the Vietnam Customs.

The sharp increase is attributed to the rising demand for goods in the RoK market, commodity price hikes, turmoil in the financial market and conflicts in the Middle East.

Vietnam’s key exports are materials, fuels, plastics, seafood, garment and textiles, and rubber with turnover increase of 20-60 percent from a year earlier.

In the reviewed period, Vietnam was the seventh largest exporter to the RoK with a turnover increasing by 107.35 percent compared to last year’s figure, seafood products by 61.9 percent, garment and textiles by 176.6 percent.

According to economists, Vietnam’s export turnover to the RoK this year will see a remarkable increase compared to last year. – VOV

Tags: Vietnam exports, Vietnam exports 2011, Vietnam trade