According to the latest data released by the General Administration of Customs of Vietnam, Vietnam’s import and export trade volume in the first six months of 2020 was approximately 240.11 billion U.S. dollars, a slight decrease of 1.4% compared with the same period in 2019, of which the export value was approximately 111.79 billion U.S. dollars. billion US dollars, a slight increase of 0.2%; the import amount was approximately 227.33 billion US dollars, a year-on-year decrease of 2.9%; the trade surplus amount was approximately 5.46 billion US dollars, a substantial increase of 111%.
In the first six months of 2020, the United States and China are still Vietnam’s largest export markets and import markets respectively. Among them, Vietnam’s exports to the United States were US$31.5 billion, an increase of 22.4%, and imports from the United States were US$10.71 billion, an increase of 0.1%. Vietnam’s exports to China reached US$19.64 billion, an increase of 18.1%, and imports from China reached US$34.92 billion, a decrease of 1.9%. In the first two quarters of 2020, mobile phones and parts, electronic products, calculators and parts, textiles, machinery equipment and parts, etc. are still Vietnam’s main export goods. The main imported goods include electronic products, calculators and parts, and raw materials for the textile and shoe industry wait.
Vietnam’s textile exports were approximately US$15.68 billion, a significant decrease of 13.4% compared with the same period in 2019. This is the first time in ten years that Vietnam’s textile exports have shown a sharp decline, once again proving the huge impact of the new crown epidemic on Vietnam’s textile industry. In the first half of 2020, under the severe epidemic situation, foreign customers canceled or postponed orders from Vietnamese textile companies in numerous cases, resulting in an average revenue reduction of 20% for many Vietnamese textile companies. In order to maintain production and business activities and reduce losses, some companies have even transformed part of their production lines into producing masks and protective clothing. However, since about 80% of mask orders are carried out in the form of simple processing rather than “Original Design” (ODM) or “Free on Board” (FOB) orders, they are unable to create considerable profit margins for the company.
Vietnam Textile Group Vinasdfssdfstex predicted on August 2 that Vietnam’s textile exports will continue to show a downward trend in the second half of 2020, with a decline of as much as 14-18%. Total textile exports in 2020 may reach US$32.75 billion, a 16% decrease from 2019. More news pointed out that as of the end of July, most Vietnamese textile companies had barely received orders for high value-added products such as suits and high-end shirts in the second half of 2020; orders for masks and protective clothing have also been reduced to Vietnamese companies because international supply has been sufficient. Order volume dropped sharply. Based on this, if the export of masks and protective clothing decreases in the future, Vietnam’s textile industry will face greater difficulties in the last few months of 2020.
At present, the epidemic in Vietnam’s traditional export markets of textiles such as the European Union and the United States has not yet been fully controlled; in addition, Vietnam’s domestic epidemic has made a comeback in Da Nang City since July 25 , the number of confirmed cases surged to about 100 in just one week, and the first death occurred on July 31. Under these unfavorable factors, the production, operation and export activities of Vietnam’s textile industry are bound to be affected. The “Europe-Vietnam Free Trade Agreement” (EVFTA), which took effect on August 1, may not bring “timely” benefits to Vietnam’s textile industry in the short term. </p
