The import-export turnover of enterprises in Ho Chi Minh City began to decline sharply in July 2021, with a rate of nearly 24%. 

Goods imported through the port of Ho Chi Minh City are falling sharply.
Photo: L.Linh

Export goods began to decline sharply

According to statistics of the People's Committee of Ho Chi Minh City, the import-export turnover of goods of enterprises around Ho Chi Minh City began to decline in July 2021, estimating the total export turnover of goods of the city's enterprises at border gates across the country reached US$3,345.5 million, down 23.9% over the previous month.

Goods of the city's enterprises exported through the port of Ho Chi Minh City (including crude oil) reached US$3,242.8 million in July, accounting for 96.9% of the total export value of the city at the border gates in the whole country and decreased by 13.6% compared to the previous month. In which, the State economic sector reached US$29.3 million, down 13.5%; the non-state economic sector reached US$1,017.9 million, down 3.1%; and the foreign-invested economic sector reached US$2,195.6 million, down 17.8%.

In general, for the first seven months of 2021, the export turnover of goods of enterprises at border gates across the country reached US$26,926.5 million, up 9.6% over the same period last year; exports excluding crude oil reached US$26,229.1 million, up 11.0% over the same period last year.

Total export turnover of goods by city’s enterprises through Ho Chi Minh City port (including crude oil) in the first seven months reached US$24,689.9 million, accounting for 91.7% of the total export value of the city at border gates in the whole country and increased by 8.8% over the same period last year.

Notably, many key export products decreased, such as rice with an export volume of 831,700 tons with a value of US$615 million, down 4.9% over the same period; coffee exports reached 167,400 tons with a value of US$294.8 million, down 8.5%. The group of seafood products reached US$473.9 million, down 22.4% over the same period last year; industrial products with export value reached US$16,842.3 million, down 0.8% over the same period and accounting for 70.2%.

Regarding the export market of goods, China was still the largest export market of the city's enterprises, but export turnover decreased, pulling the total export turnover of seven months to only US$5,625.4 million, down 6% over the same period in 2020, accounting for 22.8% of the export proportion. Similarly, exports to the Japanese market (fourth largest) also decreased by nearly 10%. Only the US, Hong Kong and EU markets had a respective increase of 7.7%, 65.6% and over 19%.

Many enterprises are temporarily closed

Many enterprises and factories have temporarily suspended operations to prevent the pandemic, which has a significant impact on the import of goods, especially production materials. It is estimated that the total import turnover of city’s enterprises at border gates across the country reached US$4,666.3 million in July 2021, decreasing by 9.8% compared to the previous month.

Total import turnover of the city's enterprises through the port of Ho Chi Minh City reached US$4,007.9 million, down 6.6% compared to the previous month.

In which, the state economic sector reached US$49.2 million, down 40%; the foreign-invested economic sector reached US$1,336.3 million, down 39.5%. The non-state economic sector alone reached US$2,622.4 million, up 31.2%.

According to the People's Committee of Ho Chi Minh City, the Covid-19 pandemic continues to disrupt international trade activities, although the city's export of goods in general still achieved positive growth in the first seven months. Total import-export turnover of the city's enterprises increased by 18.5% over the same period last year, of which exports increased by 9.6% and imports increased by 26.4%. The foreign-invested sector is considered the main driver of the city's import and export growth with export turnover increasing by 10.1% and imports increasing by 8.3% over the same period last year.

According to the assessment of the People's Committee of Ho Chi Minh City, the fourth wave of Covid-19 with the Delta strain broke out in Vietnam with a fast, strong and wide infectious speed. The Covid-19 pandemic in the city has been very complicated in the past two months, strongly affecting all aspects of people's lives and all areas of production and business of enterprises. Especially in July 2021, many wholesale markets, traditional markets and factories had to stop operating.

In addition to supporting workers facing difficulties due to the pandemic, Ho Chi Minh City continues to implement Directive No. 16/CT-TTg with stronger measures to curb the spread of the disease; maintain and expand the safe zone; support enterprises in production and business with the "three on the spot" model; at the same time mobilize all resources for disease treatment and vaccination.

According to the Customs Sub-Department at the Saigon port Area 1 (HCMC Customs Department), the number of import and export declarations for customs clearance of goods through Cat Lai port is decreasing sharply, with a decrease of about 300 customs declarations per day. In which, export declarations fell the most, about 200 declarations per day.

The reason is that enterprises and factories have temporarily suspended operations to prevent the pandemic, and localities have restricted movement, so many enterprises have stopped carrying out customs clearance procedures.