Prices of key export products plunge, pulling down growth

A sharp price decline in the country's several key export products, including agriculture, seafood, and minerals, lays heavy on Viet Nam's 10 per cent growth rate target set this year.

Nguyen Tien Vy, the head of the Ministry of Industry and Trade's Planning Department elaborated that the total import-export revenue in March was estimated at US$12 billion, increasing $2.46 billion over the previous month.


The total import-export turnover in the first quarter of the year was recorded at $33.35 billion, posting a 14 per cent year-on-year increase.

Of this figure, domestic enterprises enjoyed an export turnover of $10.9 billion, increasing 9.8 per cent over the same period last year, while foreign-invested businesses reported $22.47 billion worth of export turnover.

Vy informed the press meeting yesterday in Ha Noi that the processing industry made the highest contribution to the export results, as the group roped in about $23.5 billion, accounting for 71 per cent of the total.

Of this figure, wood and wooden products saw the highest growth of 23 per cent, following by garment and textile at 22 per cent, shoes at 26 per cent, phones and spare parts at 23 per cent.

US remained Viet Nam's largest importer in this quarter with an import turnover of $5.9 billion, increasing 23 per cent over the corresponding period last year. EU followed with a turnover of $5.9 billion, ASEAN $4.7 billion, China $3.8 billion, and Japan $3.6 billion.

However, he pointed to a fall in prices and the quantity of exports of key staples in the first quarter of the year.

As per statistics revealed by the ministry, the export prices of agricultural products, including coffee, rubber, cassava, and cassava products, reduced 2-25 per cent due to the bad weather conditions.

Ore and minerals noted a maximum decrease of 66 per cent in the material and mineral group, while coal price reduced 27 per cent.

He remarked that the decrease revealed the country's heavy reliance on weather, which was a limitation in increasing its output.

Vo Van Quyen, the head of the ministry's Domestic Market Department, reported the low prices of agricultural and fishery products despite the high output, due to a lack of association.

Tran Minh Toai, the deputy director of the southern Can Tho Province's Department of Industry of Trade shared the same viewpoint, stressing that businesses in the locality had no information on export markets, and thus faced problems in finding buyers for their products.

Toai requested the ministry to start a website focussing on market information to update import demands on agro-forest and fisheries products.

Deputy Minister Le Duong Quang urged the relevant agencies to hold timely meetings with businesses for tackling their difficulties.

Quang emphasised that the producers should improve their reserve capacity and quality in order to enhance competitiveness, especially in the case of rice