Vietnam’s exports to most markets, especially FTA ones, grew well in the first five months of this year

Bright spots

A report by the Ministry of Industry and Trade’s Agency of Foreign Investment shows that Vietnam reached a foreign trade value of almost US$239 billion in the first four months of 2024, up 15.1 percent or US$31.4 billion year-on-year, of which exports reached US$124 billion, up 15.1 percent, and imports US$115 billion, up 15.1 percent. The country exported US$9 billion more than it imported in the first four months of this year. These figures show the recovery trend of import-export activities.

Domestic enterprises achieved a growth rate of 22.8 percent, while foreign-invested ones saw a year-on-year increase of 12.4 percent.

Farm produce and seafood exports grew 25.7 percent year-on-year, with seafood sales reaching US$2.7 billion, up 5.8 percent; exports of fruits and vegetables US$1.9 billion, up 38.1 percent, and coffee sales US$2.5 billion, up 53.4 percent. Rice exports soared 9.5 percent in volume and 33.6 percent in value. As a major export of domestic enterprises, produce contributed significantly to this sector’s export growth.

Wood and wood product exports yielded US$4.9 billion, up 25 percent; while textile and garment exports hit US$10.4 billion, up 6.7 percent; footwear sales US$6.6 billion, up 7.2 percent, iron and steel exports of different types US$3.2 billion, up 28.1 percent; computer, electronic product and component exports US$21.5 billion, up 33.9 percent; and phones of various kinds and components yielded US$18.1 billion, up 5 percent.

Exports to most markets, especially FTA ones, grew well, with those to ASEAN (the Association of Southeast Asian Nations) increasing by 10.5 percent, sales to Japan soaring 3.3 percent, those to the Republic of Korea augmenting 8.6 percent, and sales to the EU and Australia improving 15.1 percent and 22.6 percent, respectively. In the first four months of this year, exports to China totaled US$17 billion, up 12.8 percent year-on-year, and sales to the US hit US$34.7 billion, up 21.2 percent.

Imports have meet production needs. About 88.8 percent of the country’s imports in the first four months were goods that needed to be imported.

FTA leverage enhancement

From 2013-2022, exports benefiting from FTA tariff incentives grew 12.7 percent in value, higher than the total export value’s growth rate of 12.5 percent in the same period.

The Ministry of Industry and Trade has been realizing export development solutions, major ones of which are to leverage FTAs and help businesses overcome difficulties.

The Ministry told Vietnamese Trade Offices abroad to regularly update businesses on foreign markets’ policy and other changes, and provides exporters with early warning of trade remedies.

The Ministry makes it possible for enterprises nationwide to participate in trade fairs and exhibitions, and other trade promotion and business connectivity activities for goods suppliers, purchasers, international distributors and importers while working with the Ministry of Agriculture and Rural Development, and the Ministry of Foreign Affairs to promote the negotiation on expanding export markets, especially those for fruits and other produce; and regularly publishing the latest policy changes in such major markets as China, the US, Japan, and the EU, as well as manuals on exporting produce and seafood to China, for example.

Efforts will be made by the Ministry to improve the efficiency and speed up import and export customs clearance at Vietnamese-Chinese border crossings, and to increase the bilateral official trade in goods.

The Ministry of Industry and Trade will further coordinate with other ministries and sectors to accelerate the negotiation and signing of new FTAs with potential partners, and help businesses fully leverage FTA opportunities and overcome difficulties.