Seriously affected by the pandemic
According to the Industry and Trade Department of BR-VT province, in May 2020, the total export turnover of BR-VT decreased by 13.45% over the same period, reaching only US$767.69 million. In the first five months of the year, import-export turnover of the province to export markets has decreased. The Asian market continued to decline by 19.16% over the same period, of that, exports to some countries and territories have plummeted due to the impact of the Covid-19 pandemic. Malaysia decreased by 65.68 %; Indonesia decreased by 62.1%; China fell by 57.27%; Taiwan (China) decreased by 57.24%; Philippines fell by 57.05%; Thailand decreased by 52.15%; South Korea fell by 47.86% and Myanmar dropped by 35.42%.
The impact of the pandemic also caused a decrease in the export turnover to the Americas market in the five months of 2020 by nearly 61%. In particular, export turnover to the US decreased by 66.69%; Brazil has now become the second hotspot after the US in the case of infection, so export turnover to this country has decreased by 52.97%.
Besides that, the pandemic also dragged the export value of some items such as means of transport and spare parts decreased 64.14%; plastic materials down 57.71%; other common metals and products down 15.62%; chemicals down 13.47% and iron and steel products decreased by 4.11%. Exports of seafood and agro-forestry products were delayed, total export turnover of seafood products decreased by 15.21%, hitting only $70.94 million; agricultural and forestry products fell by 24.8%, reaching $63.18 million.
Regarding enterprises in the area, according to the province’s Management Board of Industrial Zones, the majority of enterprises in industrial zones are in the electricity, gas, fertiliser, building materials, steel, mechanical processing and shipbuilding still operate normally. However, the restriction on travel and immigration led to a shortage of foreign workers who are experts, managerial and technical workers, causing difficulties for businesses due to a shortage of personnel operating production, business as well as project implementation. Some projects were behind schedule as Chinese experts of the contractor had not returned to work. Several FDI projects from South Korea and China investing in Chau Duc Industrial Park in 2019 were in the stage of underdeveloped investment preparation because investors could not pass through the pandemic zone.
Price of exported crude oil plummets
Along with the serious impact of the Covid-19 pandemic, the sharp decline in the price of exported crude oil caused more difficulties for import-export activities of BR-VT province. According to the Industry and Trade Department, the export turnover of BR-VT crude oil in May was only $320.76 million, down 45.41% compared to the same period in the prior year.
Regarding exported crude oil, the BR-VT Customs Department said from March 2020, the price of crude oil began to plummet and fall to its lowest level in history. The average crude oil price in the first four months of 2020 was $47.52/barrel compared to the same period in 2019 at $65.51/barrel. It is expected that in 2020, the total amount of crude oil exported through BR-VT border gates will be 4.6 million tonnes, higher than 2019 by 1.1 million tonnes. However, due to a sharp decline in crude oil prices, revenue collected from this item is expected to reach only VND 2,480 billion, down VND 550 billion compared to 2019 (VND 3,030 billion).
Not only suffering revenue loss of export crude oil, output of imported petroleum in 2020 at the BR-VT Customs Department is expected to be 501,000 tonnes, total turnover will be $209 million, down 68% in volume and 77% in value. It is estimated revenue collected from this product in this year is only about VND 774 billion, down VND 1,119 billion compared to 2019 (VND 1,973 billion).
Besides the above items, in 2020, revenue collected from other export and import items in the BR-VT province also plummeted, of that, steel and iron products tended to decline sharply in the first six months and continue to decrease in 2020 due to the decline in domestic demand for raw materials and steel products. It is expected that revenue collected from this item in 2020 will only reach VND 3,675 billion, down 14% compared to 2019.
Revenue collected from agricultural products (corn, palm oil, soybean meal and wheat) was estimated to reach VND 1,770 billion, down VND 471 billion compared to 2019 (VND 2,241 billion). Machinery and equipment imported in the first six months is VND 368 billion, down by 55% over the same period; it is estimated it will reach VND 736 billion in the year, down 53% compared to 2019.
From the above import-export situation, BR-VT Customs Department forecast that the accomplishment of revenue collection in 2020 of the unit would face many difficulties. It is estimated that revenue collected from import-export in the first six months at the unit will reach nearly VND 7,900 billion, only reach more than 39% compared to current appropriate, down nearly 20% over the same period. For the whole year, it is estimated the revenue collected from import-export activities at the unit will exceed VND 16,800 billion, reaching more than 80% of current appropriation, down some 16% compared to 2019.
By Nguyễn Huế/Thanh Thuy
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