The export market continues to face many difficulties, making the export turnover of agriculture, forestry and fishery products in the first 4 months only reach USD 15.66 billion, down 13.3% over the same period last year; trade surplus of USD 2.51 billion, down 37.7%.

Facing many difficulties

According to the report of the Ministry of Agriculture and Rural Development, the total export and import turnover of agricultural, forestry and fishery products in the first four months of the year was estimated at 28.81 billion USD; in which, exports were $15.66 billion, down 13.3% over the same period last year; import 13.15 billion USD, down 6.3%; trade surplus of USD 2.51 billion, down 37.7%.

Export turnover in April 2023 was estimated at 4.54 billion USD, down 8.3% over the same period last year. In which, agricultural products reached 2.33 billion USD, up 24%; livestock production reached 41 million USD, up 46.7%; seafood reached 800 million USD, down 28.6%; forest products reached 1.2 billion USD, down 29.8%; production input reached 169 million USD, down 21.3% and salt reached 0.4 million USD, down 2.8%.

Regarding the market, China, the United States and Japan continue to be the three largest AFF export markets; export value to China accounted for 20.9%, up 3.3% over the same period last year; The United States accounted for 18.9%, down 40.5% and Japan accounted for 8.1%, up 0.8%.

In the first 4 months of the year, many main export products had a decrease in export value compared to the same period last year, so the total export turnover was estimated at 15.66 billion USD, down 13.3%. In which, agricultural products reached 8.03 billion USD, up 8%; livestock production reached 149.1 million USD, up 39.9%; aquatic products reached USD 2.63 billion, down 27.7%; forest products reached 4.23 billion USD, down 29.9%; Production input reached USD 613 million, down 26.9% and salt reached USD 1.5 million, down 14.9%.

In addition to the groups of agricultural and livestock products that increased, such as: coffee increased by 2.5%; vegetables and fruits increased by 19.4%; cashew nuts up 3.4%; meat and by-products increased by 63.7%..., especially rice reached $1.56 billion, up 54.5%, aquatic products and forest products all decreased. Specifically, seafood reached 800 million USD, down 28.6%; forest products reached 1.2 billion USD, down 29.8%.

Referring to the reason why AFF export turnover decreased in the first 4 months of the year, Deputy Minister of Agriculture and Rural Development Phung Duc Tien said that the total AFF export turnover decreased and the export market is growing. continue to face many difficulties. The reason is that the global economy in 2023 is expected to slow down; influence from the Russian-Ukrainian military conflict; High inflation in some countries around the world, including major agricultural import markets of Vietnam (USA, Europe, Japan, Korea...), reducing consumer demand and demand. imports (purchasing power, falling demand).

“In addition, because after the Covid-19 epidemic was controlled, many countries re-exported agricultural products and increased supply in the market; in the country, many enterprises have not yet signed new export orders in 2023. Many countries promote agricultural product exports and increase supply in the market; while the amount of imported goods in 2022 of some large consumption markets such as the United States, EU ... is still large, so many businesses have not signed new export orders. The price of input materials for agricultural, forestry and fishery production is still at a high level, affecting regulation, business administration and farmers' income, profit of the farmers. businesses," added Deputy Minister Phung Duc Tien.

Actively seeking and expanding the market

Talking to a reporter from Customs Magazine, economist Vu Vinh Phu said that the reason why Vietnam's AFF exports have fallen so far this year is due to the recession and economic crisis in the world, causing the Importers and retailers in the areas where Vietnam exports also face difficulties.

Besides, inflation factor is still high, monetary policy has not been loosened; The slow recovery of the world economy and the collapse of some banks in the world have had certain impacts on the trend of tightening spending on purchasing non-essential products in some major markets such as the US, EU, causing a sharp drop in import demand. Moreover, the reopening of China - a potential market is both an opportunity but also a challenge for Vietnam's AFF products because it has to compete with other countries in the region that also export to China. In addition, in the past time, trade remedies between countries have had many complicated developments, which also affected Vietnam's AFF products.

Regarding solutions, Mr. Phu said that businesses themselves need to add value by investing in building and expanding factories for deep processing of agro-forestry products instead of raw exports as at present.

In order to achieve the goal of increasing value added of the entire agricultural sector from 2.9% to 3%, with the total export turnover of AFF reaching about 14 billion USD in the second quarter, in the coming time, the Ministry of Agriculture and Development Rural areas will continue to promote market development, remove barriers, and create favorable conditions for domestic consumption and export. Focus on removing difficulties and obstacles, minimizing negative impacts of the epidemic and market fluctuations in the country and the world.

Commenting, in the coming time, the world situation is still complicated, especially recently, Europe has passed a new law banning the import of goods believed to be related to deforestation, so the Ministry of Agriculture Agriculture and Rural Development recommends that businesses pay attention to ensure that the export of agricultural products is not affected.

At the same time, actively seeking to expand the market and improve competitiveness, focusing on the criterion of good product prices; products must be in accordance with tastes; Products must be of good quality and have a good after-sales policy. Take advantage of FTAs, especially the CPTPP and EVFTA Agreements to promote the export of key AFF products, and support enterprises to sign new export orders.

Coordinating to support the protection of trademarks and geographical indications for potential export products of Vietnam abroad. In parallel with that is restructuring and reorganizing production of enterprises, focusing on technological innovation, perfecting the production management system, improving the efficiency and quality of human resources.

The promotion of product production using domestic raw materials will reduce costs and improve the competitiveness of products.