Record exports in July

Exports surged 29.6 percent to $55.4 billion last month, a record monthly figure since the country began compiling the data in 1956. The previous record of $55.1 billion was set in September 2017, when the semiconductor industry was enjoying a worldwide boom.

In the first seven months of the year, accumulated exports amounted to $358.7 billion, setting another record. The trade ministry attributed this year’s brisk shipments to the recovery of the global economy and the high performance of the nation’s 15 core products, 13 of them posting double-digit growth.

Traditional export items such as semiconductors and automobiles as well as growing industries such as bio-health products and rechargeable batteries performed well. Shipments of chips, fueled by rising global demand for servers, jumped 39.6 percent to reach $11 billion in July, surpassing $10.4 billion in July 2018. Other major winners included the petrochemical industry, which saw its exports soar nearly 60 percent to $4.7 billion, as the COVID-19 pandemic led to more production of packaging and quarantine-related products. Exports to nine major markets all grew, with those to the U.S., Europe and ASEAN countries posting their highest figures yet.

The trade ministry has painted a rosy picture for the second half of the year, citing the recovery of global trade. If the current export trend continues, a full-year export record is possible, breaking the $605.5 billion posted in 2018.

But it is too early to be optimistic, considering some hurdles facing the country, including the spread of variant strains of the COVID-19 coronavirus that could put a damper on the global economy. Also, export companies may struggle with spikes in prices of raw materials and logistics costs as well as supply chain hiccups. That imports also increased at a fast pace (38.2 percent) in July raises fears that the country could suffer a setback in its trade balance which posted a surplus for the 15th straight month in July. It’s time for the government and businesses to join forces to take our industrial competitiveness to a higher level.