HCMC posts 5.9 percent growth in exports, an increase in export orders

Ho Chi Minh City exports were up 5.9 percent to reach US$7.38 billion in the first two months of the year, according to the municipal Statistic Office.
HCMC posts 5.9 percent growth in exports, an increase in export orders ảnh 1 Textile production for export at Phong Phu Corporation in HCMC. (Photo: SGGP)

Exports, excluding crude oil, reached $7.11 billion, a year-on-year increase of 4.3 percent.

The State economic sector earned $343.7 million from exports, up 22.8 percent, the non-State economic sector $2.28 billion, up 33.7 percent and the foreign-invested sector $4.27 billion, down 3 percent over the same period, it said.

Export value of industrial products in the period went up by nearly 43 percent to over $5.3 billion, accounting for 77 percent of the city’s total export value.

Of which, exports of computer, electronic products and components were up by 20 percent to $2.6 billion, garment and textile up by 88.2 percent to $797.6 million, and machinery, equipment and accessories up by 47.7 percent to $456.5 million.

Export of agricultural products reached $695.3 million, a year-on-year increase of 63.3 percent and accounted for over 10 percent of the total.

China remained the southern city’s biggest buyer, with a turnover of nearly $1.32 billion, accounting for 19.2 percent of the total and down 16.4 percent over the same period in 2021. It was followed by the US with export value and proportion almost the same as that of China.

Many businesses in HCMC have reported that they have received export orders until the end of the first half and some even until the end of the year.

Firms involved in the rubber and plastic sector have export orders increased by 10-30 percent compared to the same period.

Tran Viet Anh, General Director of the Nam Thai Son Import-Export Joint Stock Company, said after a long time of global production stagnation due to the impact of the Covid-19 pandemic, global inventory output is currently at very low level, while consumer demand has gradually recovered.

Currently, orders are increasing from many markets, businesses are not worried about lack of orders, but about not having enough resources to produce because raw material prices and freight rates are high, he said.

Similarly, garment and textile firms have orders until the end of the second quarter, some enterprises have negotiated orders for the whole year and are actively producing to meet the schedule.

Pham Van Viet, General Director of the Viet Thang Jeans Co. and Vice Chairman of the HCMC Garment-Textile, Embroidery and Knitting Association, said the garment and textile sector has had a certain position in the world market thanks to maintaining its supply capacity during the two years of the Covid-19 pandemic.

Right after the Lunar New Year holiday in earlier last month, firms have accelerated production to fulfill deliveries in the following months, he said.

Wood processing firms have also reported an increase in export orders in the first months of the year, with orders from the US and UK up by 15-20 percent.

Doan Vo Khang Duy, Vice President of HCMC Association of Mechanical and Electrical Enterprises, said a survey of businesses in the association showed that "No enterprise in the association complains about lack of order.”

This signals a good year for businesses in the sector, he said.