Industrial processing and manufacturing exports continue to take the lead
A report from the Ministry of Industry and Trade shows that in January 2024, exports of industrial processing and manufacturing accounted for nearly 85% of the country’s total export turnover, reaching 28.52 billion USD, an increase of 7.4% compared to the previous month.
In January 2024, exports of industrial processing and manufacturing continued to hold the leading position in the country’s total export turnover.
This growth was largely contributed by the export of various types of phones and components. The export turnover of phones and components in the first month of 2024 reached 5.8 billion USD, an increase of 56.3% compared to the previous month, thanks to the launch of the new Samsung Galaxy S24 product line in mid-January 2024.
In addition, the export turnover of wood and wood products also increased by 4.6% compared to the previous month, reaching 1.4 billion USD. The turnover of transportation vehicles and spare parts increased by 10.8%, reaching 1.3 billion USD; cameras, camcorders, and components increased by 8.1%, reaching 900 million USD.
Many key export items in the processing industry achieved high growth rates, such as textile and garment products increasing by 28.6%; wood and wood products increasing by 74.6%; all kinds of footwear increasing by 35%; computers, electronic products, and components increasing by 57.4%…
However, some items experienced stagnation or decrease compared to the previous month, for example, computers, electronic products, and components decreased by 12.1%, reaching 5 billion USD; machinery, equipment, tools, and spare parts decreased by 0.7%, reaching 3.8 billion USD; textile and garment products remained at a level of 2.9 billion USD; footwear decreased by 0.4%, reaching 1.85 billion USD…
Of note is that exports of industrial processing and manufacturing products account for a large proportion in the context of difficult industrial activities, slow recovery, continuing decline in consumer demand and economic activities, which has led to a slow recovery of the industrial production index (IIP) starting from the end of the third quarter and the beginning of the fourth quarter (compared to the same period last year, IIP started to increase after 9 months), the overall IIP of the industry in 2023 increased by only about 2.3%, the lowest increase in the past 10 years.
Reducing raw export volume, increasing export of industrial processing and manufacturing products
In recent times, there have been many factors helping exports of industrial processing and manufacturing products maintain their leading position in the country’s total export turnover.
Specifically, the industrial processing and manufacturing group has effectively diversified the market in the context of declining exports to major markets; the export turnover to African, Eastern European, Northern European, and Western Asian countries increased; the decline in exports to some key markets continued to narrow (exports to the US decreased from a decrease of 22.6% in the first half of 2023 to about 11.2% for the whole year 2023; the EU decreased from a decrease of 10.1% in the first half of 2023 to about 4.8% for the whole year 2023; South Korea decreased from 10.2% to about 2.5%…).
Therefore, the structure of export goods continues to improve in a positive direction, reducing the volume of raw export and increasing the export of industrial processing and manufacturing products, creating conditions for Vietnamese goods to participate more deeply in the global production and supply chain. The industrial processing and manufacturing group continues to account for the main proportion (85%) in the export structure.
Regarding the Ministry of Industry and Trade, there should be financial support policies and solutions for industrial enterprises, especially processing and manufacturing enterprises, to create favorable conditions for stable production and business operations. Building and effectively implementing industrial development and support programs at the local level, focusing on enhancing the capacity of small and medium-sized enterprises. Restructuring businesses, reducing costs and production costs to improve the competitiveness of products, thereby improving efficiency and adapting flexibly to new situations.
In the Project on Restructuring the Industry and Trade Sector by 2030, the Ministry of Industry and Trade clearly stated that it will continue to expand exports to effectively exploit the potential of markets associated with the transformation of the export structure towards high-tech products, high localization rates, and meeting high standards of quality and sustainable development in the markets.
The Ministry of Industry and Trade sets a target by 2030 for the proportion of industrial processing and manufacturing exports to reach about 90%, of which the proportion of medium and high-tech products is expected to increase to about 70%.
