In the 1st quarter of 2022, although the Covid-19 pandemic and the Russian-Ukrainian conflict had a significant impact on international trade, the export and import of goods of Ho Chi Minh City still achieved impressive growth…

Along with import and export activities, many other fields such as industrial production, trade, services, entertainment in the 1st quarter, especially in March 2022, as recorded by the Statistical Office of Ho Chi Minh City, gradually became busy, students and students of schools went directly back to school.

TRADE – SERVICES RECOVERY AND GROWTH

The Statistical Office of HO CHI MINH CITY reports that the city’s trade in services is on the verge of a rapid recovery and growth again after the Covid-19 epidemic continues to be well controlled, people return to the city to work, adapt to the current epidemic situation. The mentality of fear of the epidemic as before is also gradually changing.

According to the City Statistics Office, in March 2022, many business units have implemented stimulus policies on many electronic means, online and in-store shopping channels to attract consumers. However, the situation of political tensions in the world, market price developments in a number of commodity groups such as petroleum, iron and steel, gold and silver, production materials… have been highly volatile.

Total retail sales of goods and consumer service revenue in March 2022 is estimated at VND 92,690 billion, up 8.4% compared to the previous month and up 3% compared to the same period. In particular, retail sales increased by 8.3% compared to the previous month and increased by 11.7% compared to the same period; the hospitality and catering sector increased by 7.8% compared to the previous month and decreased by 5.8% compared to the same period.

In addition, the tourism industry in Vietnam as well as the tourism industry in the city is expected to have many starts again after the international tourism opening on March 15, the revenue of the tourism industry in this month is estimated to increase 3.1% compared to the previous month and increase 1.4% compared to the same period.

Including the 1st quarter, the total retail sales of goods and revenue from consumer services reached 266,942 billion VND, down 4.8% compared to the same period. In particular, the decrease is concentrated in the group of service industries due to the reopening route after Covid-19 in the first months of 2022 such as karaoke, dance hall, massage, tourism services… Therefore, revenue in these sectors was still limited in Q1/2022.

According to Nguyen Khac Hoang, Director of Ho Chi Minh City Statistics Department, of course, the whole quarter has reduced rate, because apart from income and consumption habits of the people, there has been a change, the psychology of fear of the epidemic still complicated after the beginning of the gap, the purchasing power has not reached the expectations. However, the City forecasts that trade and service revenue in the next quarter will achieve positive growth as business activities in the area and consumption of people tend to increase again as they are today.

Regarding sales of retail goods, estimated Q1/2022, the retail market of goods in the city has positive signals, maintaining positive growth with estimated revenue of VND 161,343 billion, an increase of 4.8% compared to the same period. Meanwhile, hospitality and catering services in March are estimated at VND 5,764 billion, up 7.8% compared to February but down if the quarter is taken together.

It is estimated that in the whole quarter, accommodation and food revenue reached VND 15,810 billion, down 22.4% compared to the same period. It is noted that, in succession through the months of January, February and March of the 1st quarter of 2022, revenue in this group of industries next month has increased quite a bit compared to the previous month. Although it has not been restored compared to the same period in 2021, with the vaccination rate in HO CHI MINH CITY is very high as well as people have adapted to Covid-19, so most of the entertainment, entertainment, eating, accommodation activities have been gradually restored.

IMPRESSIVE GROWTH IN EXPORTS AND IMPORTS

Regarding exports, it is estimated that in March 2022, the total export turnover of the City’s enterprises at the border gates across the country reached 4,585.5 million USD, an increase of 42.7% compared to the previous month. Exports excluding crude oil alone reached US $4,428.8 million, an increase of 44.7%.

In the City alone, the total export turnover of the City’s enterprises through the port in Ho Chi Minh City, including crude oil, reached USD 3,917.7 million in March 2022, an increase of 40.2% compared to the previous month.

Cumulatively in the 1st quarter, the total export turnover of Ho Chi Minh City enterprises at border gates across the country reached 11,878.6 million USD, up 3.5% compared to the same period (excluding crude oil exports reached 11,427.4 million USD, up 0.9%). The total export turnover of the City’s enterprises through the City port including crude oil, in the 1st quarter, reached $10,315.6 million, an increase of 0.2% compared to the same period. FDI accounted for the highest proportion: $6,522.5 million, down 9.9%. Next, the non-domestic economic sector reached $3,228.7 million, an increase of 16.1%. The state economic sector had the lowest ratio: 564.4 million USD, up 107.9%.

In the structure of exporting goods through the City’s ports in the 1st quarter, the group of industrial goods with the highest export value, reaching USD 7,432.3 million, increased by 19.1% compared to the same period and accounted for 75.3%; focusing mainly on items: computers, electronic products and components, textiles, footwear, machinery – other equipment. China remains the largest export market of the City’s enterprises with export turnover in the first quarter of 2022 reaching 2,523.3 million USD, accounting for 24.5% of the export share. Next to the order is the United States, 16.2%; Japan, 6.8% and Hong Kong 6.3%.

In terms of imports, the total import turnover of City enterprises in March at border gates across the country reached $6,765.1 million, up 30.6% compared to the previous month. Total imports of City enterprises through the City’s ports reached $5,318.3 million, an increase of 30.6% compared to the previous month.

Overall, in Q1/2022, the total import turnover of the City’s enterprises at the border gates across the country reached $17,382.5 million, an increase of 18.4% compared to the same period. Total imports of City enterprises through the City port reached 14,035.3 million USD, up 14.7% compared to the same period.

The increase in imports of Ho Chi Minh City in March, in the 1st quarter and higher than the previous month in the 1st quarter, is due to the recovery of Ho Chi Minh City economy, industrial production increased. Accordingly, the industrial production index (IIP) in March is estimated to increase by 25.9% compared to February 2022 and increase by 5.5% compared to the same period. Overall, in the 1st quarter, IIP in Ho Chi Minh City increased 1.0% over the same period; In which, processing and manufacturing industry increased 0.4%; electricity production and distribution increased 3.3%; water supply and waste treatment increased 4.2%.

Specifically, among the City’s imports, the highest group accounted for the proportion of raw materials, reaching $4,199.5 million, up 1.4% compared to the same period, accounting for 29.9% of the value of imports. Next, the group of machinery, equipment and spare parts reached $8,120.0 million, an increase of 27.4%, accounting for 57.9%. These are the groups of goods for industrial production that are recovering and growing again in HCMC.

The increase in imports of Ho Chi Minh City in March, in the 1st quarter and higher than last month in the 1st quarter, is due to the recovery of Ho Chi Minh City economy, increased industrial production. Accordingly, the industrial production index (IIP) in March is estimated to increase by 25.9% compared to February 2022 and increase by 5.5% compared to the same period. Overall, in the 1st quarter, IIP in Ho Chi Minh City increased 1.0% over the same period; In which, processing and manufacturing industry increased 0.4%; electricity production and distribution increased 3.3%; water supply and waste treatment increased 4.2%.

Source: VN Economy