Germany increases Vietnamese imports amid falls in other markets

Statistics show that two-way trade turnover between the two countries rose 1.7% in the reviewed period to US$5.5 billion. Of the total, Vietnamese exports edged up by 3% to US$3.8 billion, while imports from the market declined by 1.2% to US$1.7 billion. The country posted a trade surplus of US$2.06 billion with Germany, representing an annual increase of 7%.

The Vietnamese Trade Office in Germany reported that the Central European country is currently Vietnam’s second largest trading partner in the EU with trade turnover of US$6.5 billion, equivalent to 17% of total trade turnover between the country and the EU in the reviewed period. Of the figure, exports and imports accounted for 15% and 23%, respectively.

Agro-aquatic and electronics products were among key export items to Germany with turnover surging by 39.4% year-on-year to US$640.3 million.

The strongest export growth was recorded in coffee with US$383 million, up 37%; seafood US$94 million, up 10%; cashew nuts US$63 million, up 33%; pepper US$48 million, up 156%; fruit and vegetables US$32 million, up 118%; and rubber US$18 million, up 35%.

Most notably, Vietnamese seafood exports to Germany posted a higher growth rate compared to exports to the EU bloc as a whole, up 5% year on year.

This impressive export growth was also seen in the category of phone products with turnover up 23% to US$431 million; computers, electronic products, and components US$422 million, up 29%; plastic products US$84 million, up 30%; and timber and wood products US$44 million, up 46%. Vietnamese wooden furniture exports to Germany are mainly furniture, accounting for a proportion of 85.3%.

However, footwear and garments, that are the strongest Vietnamese exports to Germany, witnessed declines of 21% and 18%, respectively.

Insiders attributed the fall to rising inflation which has forced people to tighten spending on non-essential products.

In addition, fierce competition from regional peers such as China, India, and Turkey has also affected the export of these products to the demanding market.