Economics Expert Dinh Trong Thinh: Proactively Adapting and Accelerating Export

The month of January 2024 saw an impressive increase of nearly 40% in imports and exports, a testament to the relentless efforts of businesses in securing orders from both traditional and emerging markets.


Economic expert Dinh Trong Thinh had an exchange with a journalist from Cong Thuong newspaper about this issue!

In January 2024, the total import-export turnover reached nearly 64.22 billion USD, a 37.7% increase compared to the same period, with a trade surplus of 2.92 billion USD. What do you comment on this figure?

After more than a year of production, businesses have faced difficulties due to a lack of orders. Up to now, the businesses in the economy have made efforts, adapted and sought orders from traditional markets, new markets, and markets that have signed Free Trade Agreements (FTA) with Vietnam.

There are multiple signals showing a slight increase in export orders

As a result, businesses have export orders in various sectors and industries. Especially, in January 2024, export orders for phones and computers have shown improvement.

In addition, the Industrial Production Index (IIP) in January 2024 increased by 18.3% compared to the same period, with processing and manufacturing industries increasing by 19.3%. This is a relatively good growth rate compared to previous times.

Positive signals can be seen in attracting foreign investment, as the number of registrations in Vietnam was large in November and December 2023, with a very high disbursement level. Moving into January 2024, the level of attracting foreign investment increased by over 40% compared to the same period last year. Moreover, the number of newly established businesses and businesses returning to operation is actively increasing.

Therefore, we can also hope for a quick recovery of production and business activities this year. This is also a good signal for import-export activities as well as economic growth in 2024.

However, we still have a lot of work to do to implement the goals set out in the Government’s Resolution No. 01/NQ-CP regarding tasks, key solutions to implement the Economic – Social Development Plan and State Budget Estimate for 2024, and Resolution No. 02/NQ-CP on January 5, 2024 of the Government on key tasks, solutions to improve the business environment, and enhance national competitiveness in 2024.

Clearly, the solutions that the Government and the Ministries propose are proactive. Nevertheless, in import-export activities, businesses are facing objective risks, such as tensions in the Red Sea. What is the solution for businesses, sir?

It is delightful to see export orders returning. However, most new export orders are only short-term, with the longest lasting until June 2024. Nevertheless, the story of exports for the whole year of 2024 requires businesses to change, adapt, and make efforts.

Economic expert, Associate Professor Dinh Trong Thinh

Therefore, businesses need to improve product quality. At the same time, they must meet the greener requirements, reduce carbon emissions, and ensure food safety requirements of importing markets.

Next, businesses should focus on joint ventures, partnerships, and increase localization rates to meet the source of raw materials for production and business activities. From there, they can lower the cost of products, enhance competitiveness in domestic and foreign markets.

Furthermore, implementing promotion programs is necessary to expand the domestic consumption capacity of goods and products, as well as boost exports.

The New Year message delivered by the Government to the Ministries, sectors, and businesses is “not to have a careless beginning of the year and a hard end of the year,” as well as “not to be complacent and satisfied with the achieved results.” What is your opinion on this issue?

This direction is very accurate and right. The fact is, from the past until now, in the disbursement of public investment or in production and business activities, we have always said “January is a month for entertainment.” However, time passes quickly, leading to difficulties in catching up with production and business activities if we continue to “relax” at the beginning of the year and be satisfied with the results achieved.

Therefore, from these early months, we need to enhance public investment activities. This also needs to be thoroughly implemented in various sectors, industries, and other activities in the economy, so that together, we can enter the new year with a determined and resilient spirit.

Because, in 2024, the global and domestic economy still face many difficulties. If businesses do not wholeheartedly implement their production and business plans from the early months, the first quarters, and do not overcome the difficulties and obstacles, as well as proactively fulfill the set plans, it will be difficult to achieve the goals of each business, as well as that of the entire economy for 2024.

Thank you, sir!

S&P Global’s report on the Purchasing Managers’ Index (PMI) of Vietnam’s manufacturing industry has returned above the threshold of 50 points in the first month of the year, reaching 50.3 points compared to 48.9 points in December 2023. This result indicates the improvement of the manufacturing industry’s health after a 5-month period, although this improvement is only slight.

Particularly, the report shows that business conditions, in general, have improved thanks to the number of new orders and production volumes rebounding. As a result, domestic market demand and export market recovery have helped the total number of new orders and new export orders increase for the first time in the past three months.

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