After slowing down in the first months of 2021, Ho Chi Minh City’s merchandise exports are on the rise, expecting to reach the export target of over $40 billion.
1. Increase in exports
In the early days of May 2021, Duc Thanh Wood Joint Stock Company (GDT) carried out procedures to export many wood shipments to Europe. According to GDT as of early May 2021, GDT has completed over 70% of the plan to receive orders for the whole year of 2021. According to Ms. Le Hai Lieu, Chairman of GDT’s Board of Directors, in fact, many companies are exporting orders. can’t do it all because I have received many export orders. Therefore, the company actively does not accept many orders to maintain its reputation with customers. Le Hai Lieu also said that in order to compete with products from countries in the region such as Thailand and China, the company always ensures its prestige by product quality and price.
It is one of many businesses in Ho Chi Minh City that are trying to expand markets, increase export goods, and contribute to increasing export turnover of Ho Chi Minh City. According to the HCMC People’s Committee, the Covid-19 pandemic still has a great impact on all countries in the world, some countries have closed their borders. However, the city’s export of goods still achieved positive growth. In the first 4 months of 2021, the city’s total import-export turnover through Ho Chi Minh City border gates increased by 21.3% over the same period last year, of which exports increased by 13.9% and imports by 27.7%.
The total export turnover of goods by city enterprises through the city port (including crude oil) in the first 4 months of 2021 reached 14,204.7 million USD, accounting for 91.8% of the total export value of the city. at border gates across the country and increased 12.8% over the same period last year. In which, the state economic sector reached 338.8 million USD, down 58.7%; non-state economic sector reached 3,908.7 million USD, up 11.4%; the foreign-invested economic sector reached $9,957.2 million, up 20.5%.
Regarding the export market of goods, China is still the largest export market of the city’s enterprises with export turnover in the first 4 months of 2021 reaching 3,525.2 million USD, up 11% over the same period last year. 2020, accounting for 24.8% of export proportion. Followed by the US market reached US$2,195.1 million, up 4.9% over the same period, accounting for 15.5% of the export proportion. Third, exports to Hong Kong market reached US$1,517.2 million, up 105% over the same period, accounting for 10.7% of the export proportion.
2. Expected to export nearly 50 billion USD
In 2021, Ho Chi Minh City sets an export target of over 49 billion USD, up 10% compared to 2020’s export turnover and import turnover will reach 57.1 billion USD, up 11% over the previous year.
According to Mr. Nguyen Quoc Toan, Deputy Head of Department in charge of Import-Export Tax Department – Ho Chi Minh City Customs Department, in the first quarter of 2021, the unit carrying out procedures for import-export goods achieved a turnover of over 30.2 billion USD, up 9.67%. compared to the same period in 2020, but the export turnover only reached 12.8 billion USD, down 4.29% over the same period in 2020. This result is worrying for HCMC. However, starting in March, export turnover inched up, with a slight increase of 1.9% over the same period in 2020 to reach USD 15,406 billion. The export growth momentum is being maintained by enterprises up to now, so Ho Chi Minh City expects to achieve the export target of nearly 50 billion USD this year.
Ho Chi Minh City forecasts that by 2025, export turnover is estimated at 70 billion USD and the average export growth rate in the period 2026 – 2030 will reach 9%/year. With the group of software products and digital content, it is estimated that the export turnover by 2025 will reach 10.1 billion USD and in 2030 may reach 20.3 billion USD.
Ho Chi Minh City sets a task from now to 2025, maintaining and supporting the development of traditional key products with high export turnover and growth rates, creating many jobs and making a large contribution to the city’s budget. Meanwhile, preparing conditions for industrial upgrading, joining the global value chain, aiming to perform export services is the leading strategy to increase added value in line with the competitive advantages of Ho Chi Minh City.
At the same time, improving the competitiveness of export clusters, initially shifting from labor-intensive industries with a low level of sophistication and opportunities for diversification to those with a high level of sophistication and opportunity. more diversified (electronics, mechanics, furniture…), considering these industries as the foundation for the city’s export growth in the coming time.
Ho Chi Minh City also sets a task by 2030, to develop a strategy to improve the competitiveness of typical export products, including: Tangible products (electronics, mechanical assembly, manufacturing, automation, etc.) optics), especially software products – digital content and export of financial services, tourism, and logistics, because these are new driving forces for export growth in the long term. Shifting traditional labor-intensive industries to the periphery including: textiles, apparel, footwear, food processing, rubber, chemicals, and at the same time combine to accelerate automation applications to gradually replace them. the role of unskilled workers. Ho Chi Minh City also promotes investment attraction and development of service export industries (finance, banking, logistics); to build and form logistics service centers in the city that are synchronous in connecting and serving the movement of goods in the whole southern region.
Source: Online Customs