How the 4-billion-USD trade surplus created momentum to recover the 'health' of enterprises after COVID-19?
Amid the complicated COVID-19 pandemic as well as the appearance of Omicron variant, which has a rapid spread and "dodges" immunity, the recovery of Viet Nam's economy becomes extremely difficult.
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| In 2021, the trade surplus of Viet Nam reached 4 billion USD. (Photo: Vneconomy) |
Overcoming the accumulated difficulties, businesses still maintain and recover their production quickly. In the last months of 2021, Viet Nam's economy has gained several positive signals.
Trade surplus reached 4 billion USD
On the morning of December 29, during a press conference to announce socio-economic statistics for the fourth quarter and 2021 in Ha Noi, the Director General of the General Statistics Office, Ministry of Planning and Investment Nguyen Thi Huong said that the import and export turnover of goods maintained a high growth rate.
In 2021, the total import-export turnover reached 668.5 billion USD, up 22.6% over the previous year; in which, exports reached 336.25 billion USD, up 19%; imports reached $332.25 billion, up 26.5%.
As a result, the country's trade balance of goods is estimated to achieve a trade surplus of 4 billion USD, continuing to make Viet Nam a country with a trade surplus for 6 consecutive years.
In 2021, there are 35 items with export turnover of over 1 billion USD, accounting for 93.8% of total export turnover (there are 8 export items of over 10 billion USD, accounting for 69.7%). Meanwhile, there are 47 import items worth over 1 billion USD, accounting for 94.1% of total import turnover.
In 2021, the US is Viet Nam's largest export market with an estimated turnover of 95.6 billion USD, whereas China is the country’s largest import market with an estimated turnover of 109.9 billion USD.
In 2021, the trade surplus to the EU is around 23 billion USD, up 12.1% over the previous year; trade deficit from China was 54 billion USD, up 53%; trade deficit from South Korea was 34.2 billion USD, up 22.9%; trade deficit from ASEAN is 12 billion USD, up 63.1%; and trade deficit from Japan was 2.4 billion USD, up 127.9 %.
According to Ms. Nguyen Thi Huong, while the COVID-19 epidemic has made a negative impact on Viet Nam’s economy, the trade surplus still gained a positive result, proving that businesses have overcome a series of difficulties and challenges to maintain and restore production to serve export orders.
In terms of services, in 2021, export turnover is estimated at 3.67 billion USD, down 51.7% compared to 2020; service import turnover was about at 19.41 billion USD, up 8.5%. Service trade deficit in 2021 is 15.73 billion USD; in which, the cost of transportation service and insurance of imported goods is 8.24 billion USD.
| Viet Nam's merchandise trade balance is estimated to have a trade surplus of 4 billion USD, continuing to make it a country with a trade surplus for 6 consecutive years. |
Momentum from the government support
Resolution No. 128/NQ-CP dated October 11, 2021 on safe, flexible adaptation and effective control of the COVID-19 epidemic, which was promulgated in a timely manner and actively implemented, has brought socio-economic activities to gradually bring socio-economic activities back to the "new normal".
However, in order to make a breakthrough in 2022, creating momentum to help businesses "recover their health", in addition to enterprises themselves, as a driving force for the economy to develop, it is necessary to be more proactive in building a business plan in the new situation, with the support and facilitation from the Government.
According to Minister of Industry and Trade Nguyen Hong Dien, the ministry will continue to implement the direction of the Prime Minister in Resolution No. 128/NQ-CP as well as guide relevant ministries and sectors to ensure the maximum circulation of goods and labor back to meet the recovery of production activities after the epidemic.
The Ministry of Industry and Trade (MoIT) said that it will ensure an adequate supply of raw materials and energy to meet the requirements of production and business recovery and socio-economic development; provide maximum support for factories to maintain and restore production, and at the same time focus on the Government's solutions to remove difficulties and obstacles for businesses.
In particular, the MoIT said that it will make the most of Free Trade Agreements (FTAs) such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Viet Nam-EU Free Trade Agreement (EVFTA) and the UK-Viet Nam Free Trade Agreement (UKVFTA) to help businesses approach more opportunities.
Besides that, Minister of Industry and Trade affirmed that he will work to promote the development of logistics services, reduce the costs of transport infrastructure as well as organize trade programs, trade promotion, connect supply and demand both at home and abroad on online and new platforms.
Along with the continuing innovation, organizing trade promotion programs, and connecting domestic and foreign supply and demand on the online platform, the MoIT will focus on implementing administrative procedures in the field of import and export under the national one-stop-shop model, ASEAN single window, etc. to create favorable conditions for associations and enterprises to participate in import and export activities.
With positive signs in the fourth quarter of 2021, along with the commitments of the Ministry of Industry and Trade - the economic locomotive of the country, we have the right to hope for a "bright" economic outlook in 2022.
