Export turnover in HCMC reached over US$10 billion in Q1, a 17% decrease year-by-year, and also the sharpest decline in 22 years.
There has been a steady decrease in export turnover in most industries, from garments, to agriculture, to forestry, fishery and wood processing. Businesses are facing an unprecedented difficult year in exports, said Nguyen Nguyen Phuong, deputy director of the HCMC Department of Industry and Trade.
Garment exports downed 8%, and handicraft and woodwork decreased by about 15%, according to HCMC Business Association.
Phuong said export turnover, one of the main driving forces for growth of the city’s economy, has been negatively affected due to low orders from worldwide markets, and this may continue until mid-2023.
HCMC’s leaders said that if this situation persists, the economic outlook of the city for the whole year will be bleak.
HCMC’s gross regional domestic product (GRDP) grew just 0.7 % in the first quarter, the lowest among Vietnam’s five municipal cities. It has set a growth target of 7.5-8% for this year.