Investments

A Promising Outlook for Year-End Exports: Orders and Markets on the Rise

As of the end of August 2024, the country had 30 commodities with an export turnover of over $1 billion, accounting for 92.3% of the total export turnover. Of these, six commodities had an export turnover of over $10 billion, making up 62.6% of the total.

Administrator

26 September, 2024

Vietnam’s exports at Hai Phong Port. (Photo: Duc Duy/Vietnam+)

In the first eight months of 2024, Vietnam’s import and export activities achieved positive results, with significant growth in large markets such as the US, EU, Japan, and South Korea.

Forecast for the last months of the year, with signed orders and businesses taking advantage of market opportunities to boost consumption, contributing to the economy’s growth.

Leading Enterprises Accelerate

According to the Ministry of Industry and Trade’s report, in the first eight months of 2024, exports continued to be a bright spot in the economy. Export turnover reached a preliminary $265.09 billion, up 15.8% from the previous year. Domestic economic zone achieved $73.88 billion, up 21% and accounting for 27.9% of total exports; foreign-invested enterprises (including crude oil) reached $191.21 billion, up 13.9%, making up 72.1%.

As of August 2024, the country had 30 commodity groups with an export turnover of over $1 billion, accounting for 92.3% of the total export turnover, including six groups with an export turnover of over $10 billion, making up 62.6%.

Notably, exports to almost all markets, especially Vietnam’s major trading partners in the first eight months of 2024, showed good recovery and high double-digit growth.

For example, Vietnam’s exports to the US reached about $77.9 billion, up 25.4% over the same period last year (down 19% in the same period last year); followed by the Chinese market with a turnover of $37.86 billion, up 2.8%; the EU market reached $34.4 billion, up 18.5%; Korea is estimated at $16.8 billion, up 8.3%; Japan is estimated at $16.1 billion, up 5.6%…

Textiles and garments are one of Vietnam’s key export commodities. Mr. Le Tien Truong, Chairman of the Board of Directors of the Vietnam Textile and Apparel Association (Vinatex), said that after eight months of 2024, the textile and garment industry’s export turnover reached $28.6 billion, up nearly 7.2% over the same period. Notably, August’s export turnover reached $4.66 billion, up 14.6% over the same period.

“August was the month with the highest export turnover ever. With signed orders for the third quarter and ongoing discussions for the fourth, there is much hope for achieving the $44 billion export turnover target set for the year,” said Mr. Le Tien Truong.

Seizing market opportunities to boost exports. (Photo: Duc Duy/Vietnam+)

In the steel industry, the consumption of many products also yielded positive results. A representative of Vietnam Steel Corporation said that the consumption of cold-rolled steel and coated steel was a bright spot in production and business activities in August 2024, with continued growth in these two products.

Specifically, cold-rolled steel reached 65,000 tons, up 6.8% from July 2024 and 21.9% from the previous year. In addition, coated steel products reached over 42,000 tons, up 18.2% from the previous month and nearly 43% from the same period in 2023.

Accumulated in the first eight months of 2024, the total consumption of finished steel products of the VNSteel system reached 2.3 million tons, up 27.6% over the same period last year, of which construction steel consumption increased by 12.6% over the same period last year, reaching nearly 1.5 million tons; cold-rolled steel and coated steel increased by 67%-73%, respectively, reaching over 0.5 million tons and over 0.3 million tons.

“In the coming time, VNSteel will continue to closely monitor the situation to promptly respond to potential difficulties and challenges in both market developments and weather conditions. We will mobilize all resources for stable and efficient production and business activities, striving to complete the 2024 production and business plan assigned by the Annual General Meeting of Shareholders,” said the representative of Vietnam Steel Corporation.

Towards Sustainable Exports

The Ministry of Industry and Trade’s assessment shows that in the last months of 2024, the international and domestic contexts have favorable factors to promote production and trade development.

Accordingly, domestic production is on an upward trend, indicating that Vietnam is entering a phase of good growth. Meanwhile, the global economy and trade show signs of continued recovery and positive growth, and Vietnam’s exports are expected to continue their upward trajectory.

Mr. Tran Thanh Hai, Deputy Director of the Import-Export Department (Ministry of Industry and Trade), analyzed that import and export activities achieved good growth due to more positive international and domestic contexts. Specifically, the world economy has improved as the US Federal Reserve (Fed) has outlined a roadmap to cut interest rates after a long period.

Digital transformation and Circular Economy are the goals that enterprises aim for.

In addition, the issue of high inventory levels in export markets is gradually being resolved, especially in key export markets that faced difficulties in 2023, such as the EU and the US. In the US, consumer indices have recovered, becoming an essential factor supporting economic growth. Furthermore, Vietnam has recently upgraded its relationship with the US to a Comprehensive Strategic Partnership, promising sustainable trade development between the two countries. Domestically, the government has also actively intervened with comprehensive solutions to support the economy.

“As the agency in charge of managing and directing import and export activities, the Ministry of Industry and Trade has promptly identified difficulties and risks from export markets to advise and propose solutions to develop export markets. The policy of international economic integration and diversification of export and import markets through the negotiation and signing of new-generation free trade agreements has opened up new market areas, reducing the risk of dependence on a few markets,” added Mr. Tran Thanh Hai.

According to economic expert Dinh Trong Thinh, export activities are a significant driving force for economic growth. With the import and export growth rate in the first eight months estimated at over $413 billion, the 6% growth target for the whole year is almost certain to be achieved.

However, to promote production and business activities and achieve the export targets set at the beginning of the year, expert Dinh Trong Thinh suggested that the industry and trade sector focus on implementing and taking advantage of opportunities from trade agreements (FTAs); prioritize updating and grasping information about foreign markets; conditions, requirements, and changes in the export market for imported goods… In coordination with industry associations and exporting enterprises to obtain orders not only for the first quarter of 2025 but also for the whole year.

Many positive signals about the recovery of export growth. (Photo: Duc Duy/Vietnam+)

Mr. Thinh suggested closer coordination between the management agencies of the Ministry of Industry and Trade and the system of Commercial Affairs Departments, Vietnamese Embassies abroad, and with industries and enterprises for linkage, deep integration, and sharing. In addition, exporting enterprises also need to improve product quality and upgrade to meet the requirements of greening and digitization to achieve sustainable exports.

“Domestic manufacturing and exporting enterprises must stand on their own two feet. They should produce quality products with Vietnamese brands to conquer the international market while dominating the domestic market and promoting domestic consumption,” recommended economic expert Dinh Trong Thinh./.

Duc Duy