Vietnam's exports plunge 14.8% in Mar, GDP growth slows down sharply in Q1

In 2022, Vietnam's economy increased by 8.02% year-on-year, which exceeded expectations. But at the beginning of 2023, the exports shrunk, leading to slower economic growth.

The slowdown in GDP growth was largely due to decreasing consumer demand. The overseas sales were reduced by 14.8% year-on-year in Mar and exports dropped 11.9% in the first quarter, which was a big change from last year. In 2022, Vietnam's goods and services exports amounted to US$384.75 billion. Among them, the export of goods was US$371.85 billion, an increase of 10.6% over the previous year. The export of services was about US$12.9 billion, a year-on-year increase of 145.2%.

The GSO said the global economy is in a complex development process and is full of uncertainties, suggesting troubles caused by high global inflation and weak demand. Vietnam is one of the world's largest exporters of apparels, footwear and furniture, but in the first quarter of 2023, Vietnam is facing "unstable and complex development in the world economy."

The WTO predicts that global merchandise trade will grow by 1.7% in 2023. This increase is below the 2.7% growth rate in 2022 and below the average growth rate of 2.6% over the past 12 years. However, this figure was higher than the 1.0% forecast made in Oct last year. A key factor is China's relaxing of epidemic control policy, which is expected to release consumer demand and, in turn, boost international trade.

In the latest report, the WTO's forecasts for both trade and GDP growth are below their averages over the past 12 years (2.6% and 2.7%, respectively).