August 18, 2019 16:40

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Poor growth in exports to China

19:20 | 12/08/2019

VCN- Since the beginning of the year, exports to the United States have grown substantially, but exports to the Chinese market have been poor.  

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Phones make up a large proportion of export turnover to China. Photo: Internet

CPTPP markets see growth

According to information announced by the Ministry of Industry and Trade,by the end of July, export turnover was estimated at US$145.13 billion, up 7.5% over the same period in 2018. In the first seven months of the year, there were 24 export products reaching over US$1 billion. As many as 33 out of 45 items with export turnover increased over the same period in 2018.

The noticeable point in exports in the first months of the year is that exports to FTA partner markets and to the United States recorded high growth rates.

Specifically, the majority of exports in the first six months of the year have reached good growth rates.Exports to Japan reached US$9.66 billion, up 8.9%; exports to South Korea reached US$9.12 billion, up 4.7%; exports to ASEAN reached US$12.92 billion, up 5.6%.

Although the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) came into effect on January 14, 2019, exports to partner markets have been positive. Exports to Canada increased by 32.9% (reaching US$1.83 billion) and those to Mexico increased by 23.43% (reaching US$1.31 billion).

For the US market, exportsrecorded a relatively high growth rate, reachingUS$27.51 billion, up 27.3% over the same period in 2018.

Exports of wood products increased by 32.2% (reaching US$2.25 billion); textiles increased by 10.1% (reached US$7.03 billion); footwear increased by 15.3% (reaching US$3.18 billion); computers, electronic products and components increased by 77.1% (reaching US$2.3 billion).

Low growth in exports to China

Conversely, exports to China and theEU in the first half of this year saw low growth.

Exports to China reached only US$16.68 billion, up just 0.3% over the same period last year (equivalent to an increase of US$42.7 million).

In terms of goods, there were two items with a strong export turnover to China – phones and rice.Specifically the export of phones decreased by US$549 million, contributing to the overall decline in export turnover to this market. Rice exports also fell sharply compared to the same period last year, specifically US$329.3 million.

The Import and Export Department (Ministry of Industry and Trade) said thatexports to China grew slowly due to lower import demand because the economic situation in the first months of 2019 was not prosperous.

The US-China trade conflict has caused many Chinese businesses to reduce orders andcut back onlabor, which impactsChinese people's income and consumption. In addition, the weak Yuan also makes foreign goods relatively expensive.

According to data from the General Department of Customs of China, imports inthe first six months reached US$990 billion, down 4.3% compared to the same period last year. Chinese goods with decreasing imports over the same period last year includedrice, frozen fish, natural rubber, industrial products such as fiber, computers and components, glass and products from glass, paper and products from paper, plastic, iron and steel and other common metals.

Therefore, not only from Vietnam, but China's import turnover from many countries has decreased or increased slightly. Imports from Korea decreased by 14.6%, those from Japan fell by 6.4%, those from Taiwan decreased by 7% and from Thailand increased by 0.5%.

In the EU market, in the first half of this year, export turnover reached US$20.5 billion, down 0.6% compared to the same period in 2018.

Five items caused the overall exports to the EU to decrease sharply. These were phones and accessories, reaching US$6.26 billion, down 6.8%; computers, electronic products and components reaching US$2.19 billion, down 4.7%; iron and steel of all kinds reached US$137 million, down 42.9%; coffee reached US$651 million, down 13%; seafood reached US$597.5 million, down 13%.

However, exports to the EU market also saw some bright spots, including those of machinery, equipment, transport means, wood, shoes and vegetables.

By Thanh Nguyen/Bui Diep