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Seaport industry – Too early to expect a recovery at the beginning of 2H2023

• Vietnam's major export markets are the US, China, and the EU, with export market shares of 28%, %, and 11%, respectively, experiencing negative growth. In 5M2023, the estimated export value through sea containers to these markets was USD 21.9 billion (-19% YoY), USD 9.1 billion (-4% YoY) and USD 8.5 billion (-9% YoY), respectively. In the first two months of Q2-FY23, the export value to European-American markets continued to grow in double digits, while there were signs of recovery for the intra-Asian region.
• In the Vung Tau region, there was a significant decrease in container throughput compared to the Hai Phong region. Accumulated 5M2023, the total container throughput in the Hai Phong and Vung Tau areas were 2.4 million TEUs (-5% YoY) and 1.8 million TEUs (-25%), respectively.
• In June 2023, Vietnam's PMI of 46.2 was still below 50 points for the fourth consecutive month, showing that the health of the manufacturing industry continues to decline. Weak demand conditions are the main cause of a decrease in the number of new orders. We think that the seaport industry will unlikely recover as soon as 2H2023 as expected because the picture of trade activities is not bright.