HCMC export situation grim as recession hits demand

Vo Van Hoan, vice chairman of the city People's Committee, speaking at the HCMC Vietnam Export Fair on Thursday, said the biggest drop in exports in 22 years involved major items such as textiles, seafood and wood products, and directly affected economic recovery.

The global recession and instability have reduced foreign orders, especially from main markets such as the EU and the U.S., he said.

Domestic demand has plummeted by 35-50%, he added.

Napoli Coffee founder Nguyen Duc Hung said that his company’s exports were down 40% year-on-year in the first four months of 2023, and local demand too dropped despite many promotions.

Colusa-Miliket Food JSC reported saw a 30% decline in domestic sales.

To address the situation, the city has launched a number of trade promotions and held the first Vietnam Export Fair in HCMC on Thursday to stimulate demand.

This fair’s 250 booths showcased major export products like agricultural produce, textiles, footwear, furniture, electronics, rubber, and plastic, and many businesses offered discounts of up to 50%.

It attracted more than 3,000 domestic shoppers, and also businesses from Japan, South Korea, India, and the U.S. looking for partners in Vietnam.