Vietnams exports of agricultural products reached $20.1 billion in the last 9 months

In the first nine months of 2021, Vietnam’s exports of agricultural, aquacultural and forestry products reached US$20.1 billion, an increase of 10.9 per cent compared with that of the same period last year.

According to the Ministry of Industry and Trade, Vietnam’s exports turnover will increase by 10 per cent this year, surpassing the target approved by National Assembly and the Government which was 4-5 per cent.

In its report on the country’s industry and trade activities in the first nine months of this year, the ministry also forecasts that in the remaining three months of this year, Vietnam’s production is likely to recover as it fully makes use of advantages that free trade agreements (FTAs) bring to.

Deputy Minister of Industry and Trade Do Thang Hai said that Vietnam was making use of FTAs effectively.

Moreover, the world’s commodity demand often increased at the end of the year, bringing opportunities for Vietnam's key exports like agricultural products, wood, textiles and footwear, he said.

“Exports are forecast to increase, but Vietnam will still have a trade deficit of about US$2 billion, accounting for 0.63% of total export turnover,” he said, adding that the country’s imports often increased in the fourth quarter of a year.

The industrial production index is projected to increase by about 6 per cent compared to 2020. The accumulated export turnover in the first nine months of 2021 reached $ 240.5 billion, up 18.8 per cent over the same period of last year.

The processing and manufacturing industry continued to be the driving force for the growth of the whole economy with a growth rate of 6.05 per cent, contributing 1.53 per cent to the country’s economic growth.

Electricity production and distribution increased by 5.24 per cent, contributing 0.2 per cent to the country’s economic growth.

In the first nine months of 2021, Vietnam’s exports of agricultural, aquacultural and forestry products reached US$20.1 billion, an increase of 10.9 per cent compared with that of the same period last year.

The exports of cassava, rubber and pepper grew the most with an increase of 67.6 per cent, 52.7 per cent 46.9 per cent respectively in value.

The US remained the biggest export market of Vietnam, spending $69.8 billion on imports of Vietnamese products, a year-on-year rise of 27.6 per cent. China came second with $38.5 billion, up 18.3 per cent. The EU and ASEAN followed with $28.8 billion and $20.6 billion, increasing by 11.6 per cent and 21.2 per cent, respectively.

According to the Ministry of Industry and Trade, industrial production in the first 9 months of 2021 was heavily affected by the COVID-19 pandemic.

Major commodity production hubs with major enterprises included in the global value chains like Bac Ninh, Bac Giang, Hanoi and the southern provinces and cities had implemented strict social distancing measures, causing a sharp decrease in the output of goods, greatly affecting production supply chains and global value chains.

From the second half of September 2021, many provinces and cities resumed production and loosened the social distancing measures.

The synchronous and timely solutions of the Government, ministries, agencies and localities helped the total retail sales of consumer goods and services in September increase by 6.5 per cent compared to August.

In the three remaining months of this year, the Ministry of Industry and Trade plans to focus on implementing Resolution No. 63/NQ-CP dated June 29, 2021, exploiting and taking advantage of opportunities from FTAs as well as handling the problem of traceability, ensuring the quality of Vietnam's agricultural products.

The ministry will be further seeking opportunities to export Vietnamese products to South Asian and East Asian markets besides the traditional markets of China, Korea, and Japan.

For the domestic market, the ministry will closely monitor the movements of supply, demand and prices of essential commodities to take timely regulatory measures to ensure a reasonable distribution of goods between regions.

In addition, the ministry planned to gradually reopen markets, commercial centres, supermarkets, convenience stores, establishments and business households together with ensuring epidemic prevention and control measures.

The ministry will also implement market stabilisation/stimulation programmes such as a national promotion month before 2022 New Year and the Lunar New Year, programmes to further connect manufacturers, suppliers with distributors.

"To further support people, businesses and organisations to restore production after the pandemic, the Ministry of Industry and Trade will work closely with relevant units such as Vietnam Electricity to stabilize electricity prices. at the end of the year," said Deputy Minister Hai.