In 2015, after years of high export growth, Vietnam failed to achieve its export growth target of 10%. This situation has continued to worsen in 2016.
Textile orders have continued to significantly decline in all markets. In contrast to last year, when there were a range of orders so that businesses could raise prices, this year, they firms instead have had to seek out new orders. Garment 10 Corporation have even had to receive retail orders, instead of relying on their traditional large-scale orders as previously.
"In the first 4 months of this year, orders not only reduced in the volume, but also in price." - Than Duc Viet, Deputy General Director, Garment 10 Corporation.
The processing industry - a key sector in terms of growth of the country's exports this year, has also experienced falls. In the first 4 months of the year, exports reached 52.9 billion US dollars, which although marking a 6% increase compared to the same period last year, is slow.
"In the context of declining oil prices, world commodity markets, especially agricultural and aquatic products have remained low in price." - Tran Tuan Anh, Minister of Industry and Trade.
The target of 10% export growth is unlikely to be achieved this year.
"I think that now we have to face this. If exports don’t reach our target, it will overall economic growth." - Phan The Rue, Economic expert.
A fall in exports has an obviously significant impact on a series of macroeconomic indicators, including the balance of trade, exchange rates, inflation, monetary policy and national finance.
