The government has already lowered the export target for 2017.
Vietnam’s export growth target of 10 percent is likely to be out of reach this year, the government’s online news portal reported.
Export growth only rose by 7.5 percent on-year to around $160 billion from January to November, and no significant increases are forecast in December.
“This means the 10 percent goal is practically unachievable,” the site concluded.
Minister of Trade Tran Tuan Anh said that the country has faced a number of export obstacles this year with political instability in major markets dragging down consumer demand.
He cited rice as an example. The country’s rice exports fell by 25 percent in value in the 11-month period after China and other neighboring countries reduced import volumes.
Vietnam’s textile industry, the country’s second largest export sector last year, is forecast to see growth of 5 percent in 2016, much lower than the double-digit growth recorded in previous years.
Export growth of smart phones and accessories, the country’s biggest earner, is expected to fall to 10 percent this year from 30 percent last year.
Despite the gloomy picture, there are some bright points, said Tran Thanh Hai, deputy director of the ministry’s Import-Export Department.
Some traditional exports have recorded significant growth this year, such as fruit and vegetables (up 30 percent), coffee (up 26 percent), cashew nuts (up 16 percent) and pepper (up 16 percent).
“These figures show that our farm produce is being consumed globally, benefiting both farmers and enterprises involved in industrial production,” Hai said.
The expert forecast that exports will improve next year providing the country promotes its competitive edge, expands into new markets and engages in the global production chain.
Vietnam’s export growth target has been set at 6-7 percent for 2017.
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