What is turnover? How to calculate total import and export turnover

Turnover is an important indicator, reflecting the import-export situation of a country. So what is turnover? In the article below, 1C Vietnam will explore with businesses the concept of turnover, how to calculate total import-export turnover and the importance of this index to the economy. Find out now!

1. What is turnover?

What is turnover? Turnover is the total value of goods and services that a country exports or imports during a specific period of time, usually a year. This term is very familiar in the field of commercial economics and is an important indicator to evaluate a country's commercial activities. Turnover also shows the level of a country's participation in international business activities as well as the competitiveness of domestically produced goods in the global market.

2. 2 main types of turnover today

Besides understanding what turnover is, businesses need to understand the concepts of the two main types of turnover today.

2.1 Export turnover

Export turnover is the total value of goods and services that a country sells to the international market in a certain period, reflecting its competitiveness in the international market and contributing to overall economic development. .

2.2 Import turnover

Import turnover is the total value of goods and services that a country purchases from international markets during a specific period of time, indicating the level of dependence on imports and the impact on the country's trade balance. .

3. How to calculate total import and export turnover accurately

To calculate import-export turnover, businesses can use the following formula:

Import-export turnover = (Export value / Import value) x 100%

In there:

• Export value is the total value of goods sold to international markets.
• Import value is the total value of goods purchased from the international market to meet domestic consumption, production and business needs.

4. Overview of import and export turnover in Vietnam

So that businesses can better understand what turnover is, 1C Vietnam has compiled general information about import and export in Vietnam. According to preliminary data from the General Department of Customs, in June 2023, the total import-export turnover of goods reached 56.01 billion USD, up 3.6% over the previous month but down 14.1% over the same period. period last year. Specific details are as follows:

4.1 Import turnover

In June 2023, import turnover of goods reached 26.71 billion USD, an increase of 2.6% compared to the previous month. Compared to the same period last year, import turnover decreased by 16.9% this month and decreased by 22.3% in the second quarter of 2023. In the first 6 months of 2023, import turnover of goods is estimated at 152.2 billion USD, down 18.2% over the same period last year. Domestic and foreign-invested economic sectors both recorded a decrease of 19.0% and 17.8%, respectively.

Analyzing the structure of imported goods in the first 6 months of 2023, the group of capital goods accounts for the largest proportion with 93.7%, of which the group of machinery, equipment and spare parts accounts for 44%; Raw materials and materials group accounts for 49.7%, and consumer goods group accounts for 6.3%.

4.2 Export turnover

Statistics show that merchandise export turnover reached 29.3 billion USD in June 2023, an increase of 4.5% compared to the previous month. Of which, the domestic economic sector reached 8 billion USD, a slight decrease of 0.3%, and the foreign invested sector, including crude oil, reached 21.3 billion USD, an increase of 6.4%. %.

In the second quarter of 2023, Vietnam's export turnover reached 83.4 billion USD, down 14.2% over the same period last year and up 2.9% compared to the first quarter of 2023. Total for the first 6 months In 2023, merchandise export turnover is estimated to reach 164.45 billion USD, down 12.1% over the same period last year. Of which, the domestic economic sector contributed 43.41 billion USD, down 11.9%, accounting for 26.4% of total export turnover; and the foreign invested sector, including crude oil, reached 121.04 billion USD, down 12.2%, accounting for 73.6%.

• The group of processed industrial goods accounts for the largest proportion with 144.82 billion USD, accounting for 88.1% of total export turnover.
• The group of agricultural and forestry products reached 13.4 billion USD, accounting for 8.1%.
• The seafood group reached 4.13 billion USD, accounting for 2.5%.
• The fuel and minerals group contributed 2.1 billion USD, accounting for 1.3%.

5. Propose plans to increase export turnover

Understanding what turnover is makes it easier for businesses to propose plans to increase export turnover. Some solutions include improving product and service quality, expanding export markets to potential regions and taking advantage of free trade agreements (FTAs) to maximize benefits. .

5.1 Expand export markets

Currently, Vietnam's exports mainly focus on markets such as the US, China, EU, Korea and Japan. To increase export turnover, it is necessary to expand to potential markets such as India, Southeast Asia, the Middle East, and Africa.

Currently, Vietnam has signed many free trade agreements (FTAs), creating many opportunities for export. To effectively take advantage of these commitments, it is necessary to support businesses to improve their competitiveness and meet the standards and regulations of import markets.

5.2 Improve trade promotion effectiveness

Trade promotion is an important bridge between Vietnamese businesses and international markets. To improve efficiency, it is necessary to innovate implementation methods, focusing on target markets and products and services with export potential.

5.3 Improve enterprise production capacity

Improving production capacity is a key factor to increase export turnover. Businesses need to continue investing in new technology and improving product and service quality to meet the increasing demands of the market.

1C:ERP is one of the modern solutions with many modules, which stand out with features of the production management module. The solution provides flexible production planning, strict production monitoring, and supports product data management and production progress tracking. Developed based on a low-code technology platform, 1C:ERP provides a flexible management solution with full operations to apply in-depth to different business models, especially manufacturing businesses. export.

5.4 Promote production and processing

To grow exports and balance the trade balance, promoting the production and processing of high value-added goods is necessary. In particular, it is necessary to focus on processing products from agricultural, forestry, fishery raw materials and industrial products with high added value.

5.5 Strongly develop logistics

Logistics plays an important role in increasing the competitiveness of Vietnamese goods in the international market. To improve logistics capacity, it is necessary to continue investing in infrastructure, technology and professional services. Businesses can apply 1C Vietnam's comprehensive business management solution 1C:ERP. The solution helps integrate different departments within the business such as purchasing, production, logistics and sales, creating a close and consistent connection. This helps automate processes, reduce errors and improve efficiency in the production and transportation of goods.

Using ERP:1C helps businesses develop strongly in the field of logistics, contributing to increasing import-export turnover. This system improves resource management, saving time and costs, thanks to the ability to integrate data on a single platform. Leadership has instant access to live data, enabling faster and more diverse reporting with real-time, accurate data that can be customized to needs.

Hopefully the above article has helped businesses understand what turnover is as well as know how to effectively improve this index. Businesses can apply specialized automation solutions such as 1C:ERP to improve production efficiency, enhance supply chain management capabilities, be ready to meet the needs of the global market, and capture opportunities to increase the value of import-export turnover. If you have any questions, please contact 1C Vietnam for support.