Robust Export Performance Driving Expansion into New Markets

Despite global economic volatility, Vietnam has experienced optimistic economic growth, highlighted by an impressive import and export value of US$439.88 billion in the first seven months of 2024.

Exports of computer and electronic components surge by nearly 30% in the first seven months of the year

FDI sector sustain strong export performance

The latest report from the General Statistics Office (GSO), released on July 29, indicates that the merchandise import and export value for July was estimated at US$69.72 billion. This represents an 8.7% increase from the previous month and a 21.8% rise compared to the same period last year.

Of the sum, the merchandise export value was US$35.92 billion in July, up 6.7% month on month and 19.1% year on year, totaling US$ 226.98 billion in the first seven months, up 15.7% year on year.

The domestic economic sector contributed US$63.08 billion to exports, marking a 21.1% increase and representing 27.8% of the total export value. In contrast, the foreign-invested sector (including crude oil) accounted for US$163.9 billion, reflecting a 13.8% year-on-year rise and comprising 72.2% of the total exports.

Vietnam enjoyed a trade surplus of US$14.08 billion in the first seven months of 2024. Specifically, the domestic economic sector suffered a trade deficit of US$14.92 billion while the foreign-invested sector (including crude oil) took a trade surplus of US$29 billion.

Experts are confident that the export growth target of 6% in 2024 is completely feasible. The fact that many Vietnamese products are sold most globally affirmed Vietnam’s position on the world trade map. However, to maintain and develop further, the country needs to constantly reform, improve product quality, diversify markets and quickly adapt to more stringent requirements of the international market.

Diversifying markets

Regarding export markets, the United States was Vietnam's largest export partner with an estimated US$66.1 billion. Vietnam imported most from China, spending US$79.2 billion.

In fact, in addition to traditional markets such as the United States, the European Union (EU) and China, Brazil, India and the United Arab Emirates (UAE) are new potential markets which may have high demand for Vietnamese goods. This move helped reduce risks from dependence on some key markets.

Mr. Tran Thanh Hai, Deputy Director of the Agency of Foreign Trade (AFT), highly appreciated the efforts of localities and businesses in promoting exports. The Ministry of Industry and Trade is proactively implementing a range of strategies to boost trade performance. These include accelerating negotiations on free trade agreements (FTAs) and leveraging the benefits of existing agreements such as the CPTPP, EVFTA, and RCEP. Additionally, the ministry is assisting businesses in accessing market information and advancing digital transformation in trade promotion.

Mr. Ngo Xuan Ty, Head of the Vietnam Trade Office in Brazil (concurrently in charge of Bolivia, Guyana, Peru and Suriname) said that Brazil, as a Top 10 global economy, a G20 member, and a leading country in the Southern Common Market (Mercosur), represents a significant and accessible market. Its regulatory standards are generally less stringent compared to those of developed nations. Additionally, it is important to explore opportunities in Peru, a member of the CPTPP Agreement, which Vietnam has also signed, to further enhance trade prospects.

Pham Thi Thu Ha, Commercial Counselor of the Vietnam Trade Office in Romania, said that bilateral trade value reached US$241.5 million in the first six months of 2024, up 31.3% year on year. Romania is a potential market for Vietnamese businesses to boost exports, especially for small and medium-sized enterprises (SMEs) with moderate financial capacity. Vietnamese businesses have many opportunities to export biological livestock products, petrochemicals, petroleum products, textile and garment materials, and other products to Romania.

Vietnamese companies are also focusing on promoting trade in Islamic Halal markets with 2 billion consumers. Nguyen Minh Phuong, Director of the West Asia and Africa Office, Asia-Africa Market Department, the Ministry of Industry and Trade, said that some countries such as Indonesia, Malaysia, Bangladesh, Egypt, Saudi Arabia and UAE are potential markets with a huge import demand for Halal products.

“Companies need to grasp business practices and update standards and regulations on specific potential products when they do business with these markets,” she emphasized.

In addition to consolidating traditional markets, expanding to new markets such as Africa, the Middle East and Muslim countries is extremely important. Businesses need to focus on boosting trade, meeting high quality standards, building strong brands and effectively leveraging free trade agreements to successfully penetrate these new markets.

By Huong Ly, Vietnam Business Forum