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Who took the order? After six months of continuous decline, Vietnam's exports continued to decline in August! The largest shoe companies began the third layoffs this year!
Sep 04,2023
Recently, everyone is asking where the order went. Did you go to Vietnam? The Vietnamese official sent a message, not with me!
Vietnam Import and Export Data
Recently, Vietnam's General Bureau of Statistics reported that Vietnam's exports fell 7.6 per cent in August from a year earlier, the sixth consecutive month of decline, further lengthening the longest decline since 2009. Vietnam's August imports fell 8.3 per cent year-on-year to $28.55 billion, while its trade surplus was $3.82 billion.
Official statistics also show that in the first eight months of 2023, Vietnam's total import and export of goods reached 435.23 billion billion U.S. dollars, a year-on-year decrease of 13.1 percent. Of this total, exports fell by 10 per cent and imports by 16.2 per cent, resulting in a cumulative trade surplus of $20.19 billion billion in goods.
The United States is Vietnam's largest export market, with an export value of 62.3 billion billion US dollars. China is Vietnam's largest import market, with an import value of US $68.1 billion.
Vietnam is one of the important manufacturing centers of the world's major electronic products and clothing brands. Its export data is usually regarded as a window to observe global consumer demand. According to the current data, the situation is not optimistic.
Statistics show that from January to August, Vietnam's exports fell by 10% year-on-year, while imports fell by 16.2. Its exports to most major markets fell year-on-year, with the US down 19.1 per cent and the EU down 8.3 per cent.
Among Vietnam's most important exports, smartphone exports fell 15.4 per cent year-on-year, clothing exports fell 15 per cent and footwear fell 17.6 per cent.
The Ministry of Trade and Industry of Vietnam pointed out in a report earlier this month that the difficulties and challenges of the trade industry are huge in the global economic downturn.
Meanwhile, Vietnam's industrial output rose 2.6 percent in August, the second month of growth. The General Bureau of Statistics of Vietnam stated that although industrial output from January to August still fell by 0.4 year-on-year, recent factory data are moving in a good direction.
Weak external demand
Regarding the reasons for the sharp drop in exports, Japan reported that the decline in purchasing power in the Western market has directly impacted Vietnam, a country that mainly relies on exports.
affected by the downside of the entire external market. Since the beginning of this year, the global market has been sluggish, the global economy has deteriorated, and demand has been suppressed. Therefore, Vietnam's orders are declining, and a decline in exports is inevitable.
Tens of thousands of jobs in Vietnam have been affected by continued weak external demand. It is also difficult for some export-oriented manufacturing enterprises to use bank loans to expand production.
In August, Vietnam's smartphone production fell 17.7 percent year-on-year to 0.1199 billion units. Production of clothing and footwear fell by 5.8 per cent and 4.3 per cent, respectively.
In addition, the quality of the Vietnamese workforce has yet to be improved. Because labor costs in Vietnam are relatively low, many manufacturers choose to move their factories to Vietnam.
Originally, the factory in Vietnam was based on the cheap labor in Vietnam, in order to save the cost of the enterprise, but even with accurate design drawings, it is still difficult for Vietnamese workers to create high-quality products.
Businesses frequently lay off workers
Vietnam Baoyuan Shoe Factory, one of the largest shoe factories in Vietnam, is one of the representative enterprises in Vietnam.
Recently, according to Vietnamese media reports, the shoe factory is about to lay off more than 1200 people again. It has laid off three times this year, and about 9000 workers have lost their jobs.
Vietnam Baoyuan Shoe Factory said it had to lay off staff as orders had not yet recovered and partner orders were scarce. After many layoffs and no longer renewing contracts with expired employees, the current number of employees is about 40000, a decrease of nearly half from the peak.
Baoyuan Company is the largest shoe factory in Ho Chi Minh City, Vietnam, and it is also the enterprise with the largest number of employees in Ho Chi Minh City. The number of employees in the most brilliant and busy period reached 100000.
In Vietnam, Baoyuan is known as the Samsung in the leather and footwear industry, and the company is a Chinese Taiwanese-funded enterprise. The factory supplies global sports brands such as Nike and Adidas.
In the first half of this year, 60200 Vietnamese enterprises temporarily closed down, an increase of 18.2 percent over the same period last year. At the same time, 31000 enterprises were closed and waiting for dissolution procedures, and 8800 enterprises completed dissolution procedures, an increase of 28.9 and 2.8 respectively over the same period last year.
Looking forward to the trend of Vietnam's foreign trade, Oxford Economics said that Vietnam's weak trade trend is still not over, which will continue to drag down its economic growth. The agency also expects Vietnam's central bank to cut its policy rate by about 50 basis points by the end of the year.
Earlier this month, Vietnamese Prime Minister Pham Minh said that the government hopes to push Vietnam's economic growth rate to about 9% in the second half of the year to achieve the annual economic growth target of 6.5 percent.
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