Vietnam's exports projected to grow by 10-12% in year ahead: MBS

The country’s May exports were worth $33.8 billion, up 5.7 per cent month on month (MoM) and up 15.8 per cent year on year (YoY)—signs of a recovery.

The country, however, recorded a trade deficit of $1 billion in May due to a rise in import of equipment, machinery and raw materials as several businesses expanded operations to meet export orders from emerging markets.

High export growth was recorded in the month in products like textile fibres and yarns, whose exports were up by 52.7 per cent, a domestic media outlet reported.

In the first five months this year, exports stood at an estimated $156.7 billion—up by 15.2 per cent YoY. The United States remained the largest Vietnamese export market with $44 billion—up by 2 per cent YoY; followed by the European Union (EU) with $20.7 billion—up by 16.1 per cent YoY; and Japan with $9.4 billion—up by 4.7 per cent YoY.

However, MBS said hurdles ahead for Vietnamese exports include rising transportation costs due to escalating geopolitical conflicts and fierce competition from regional peers like China, Indonesia and Thailand.

Fibre2Fashion News Desk (DS)