The Top 10 Moments in Industry and Trade for 2024

25 December, 2024

Record-breaking Import and Export Achievements in 2024

In 2024, despite numerous challenges, Vietnam’s socio-economic development made significant progress with many positive outcomes. The country successfully achieved all 15 set targets, with a GDP growth rate of over 7%, setting a new momentum and creating a new belief for the entire Party, people, and army. The Ministry of Industry and Trade played a crucial role in this success, contributing significantly to the economic growth with remarkable results.

Based on the nominations from units under the Ministry and industry media agencies, on December 23, 2024, the Ministry of Industry and Trade announced the top 10 outstanding events of the industry in 2024 as follows:

Breakthrough in policy advisory with a series of Laws, Decrees, and Circulars being amended, supplemented, and newly issued

Particularly in the field of energy and industry, the notable policies included restarting the Nuclear Power Development Program and the Ninh Thuan Nuclear Power Projects; addressing challenges faced by renewable energy projects; separating A0 from EVN to innovate the operation of the national power system and electricity market; and resolving long-standing issues in the industry, creating a strategic breakthrough for energy development in the era of national advancement.

Ceremony for the 500kV Power Transmission Line Projects from Quang Trach (Quang Binh) to Pho Noi (Hung Yen)

Miracle of the 500kV Power Transmission Line with a series of records in construction time, workload, resource mobilization, and problem-solving mechanisms

The 500kV power transmission line project from Quang Trach to Pho Noi, with a total length of approximately 519km and consisting of 1,177 towers, faced numerous challenges due to harsh weather conditions and difficult terrain. However, with the strong leadership of the Prime Minister and the proactive and innovative management of the Ministry of Industry and Trade, along with the efforts of other ministries, sectors, and local authorities, the project was completed in just over 6 months, overcoming what seemed impossible.

The oil and gas industry also aimed to surpass the threshold of 1 quadrillion VND in revenue in 2024, with a focus on developing a chain of offshore oil and gas and wind power projects, including several key energy projects. With the 11-month production and business results basically exceeding the key targets, reaching nearly 904 trillion VND, an increase of 7% compared to the same period in 2023, the Vietnam Oil and Gas Group (PetroVietnam) is determined to implement its management plan, aiming for the goal of surpassing 1 quadrillion VND in 2024 and preparing for a growth rate of over 10% in 2025.

Notably, PetroVietnam has been executing large-scale, complex, and high-tech key projects, such as the gas-power chain in Lot B – O Mon and the Lac Da Vang project, demonstrating the group’s determination and efforts to overcome difficulties and continuously develop, contributing to the country’s economic growth.

Trade turnover approaching the historic milestone of approximately 800 billion USD, the highest ever; achieving the 9th consecutive year of trade surplus with a surplus of nearly 25 billion USD

In 2024, the import and export activities witnessed a strong recovery. The total trade turnover is expected to reach 800 billion USD, an increase of 15%, nearly 2.5 times higher than the 6% target set by the government. Exports are estimated at over 400 billion USD, a 14.4% increase, while imports increased by 16.4%. The trade balance maintained a high surplus of nearly 25 billion USD, marking the 9th consecutive year of trade surplus.

There were 36 export commodities with a turnover of over 1 billion USD (compared to 33 in the previous period), accounting for 94.1% of the total export turnover (including 7 export commodities with a turnover of over 10 billion USD, making up 66.5%). Additionally, 44 import commodities had a value of over 1 billion USD, accounting for 92.6% of the total import turnover (including 5 import commodities with a turnover of over 10 billion USD, accounting for 51.4%).

Resilient recovery of the industry sector, with an impressive growth rate of 8.4%, including a nearly 10% increase in the processing and manufacturing industry (compared to less than 1% in 2023), providing a significant boost to macroeconomic growth

In 2024, Vietnam’s industrial production continued to face significant challenges due to the slow recovery of the real estate market and reduced consumer demand, which impacted the demand for many industrial sectors. Additionally, natural disasters, especially Storm No. 3, had adverse effects on the production and business activities of enterprises.

However, thanks to the government’s efforts in policy direction and management, along with the timely and synchronized participation of the Ministry of Industry and Trade, industrial production in 2024 not only recovered positively but also achieved remarkable growth compared to the same period in 2023. Overall, the industrial production index in the first 11 months of 2024 is estimated to increase by 8.4%, a significant improvement from the 0.9% growth rate in the same period in 2023.

Notably, the processing and manufacturing industry grew by 9.7% (compared to a 1% increase in 2023), contributing 8.5 percentage points to the overall growth, regaining its role as the main driver of economic growth. Industrial production also recovered and grew across the country, with the industrial production index increasing in 60 out of 63 provinces and centrally-run cities.

Prime Minister of the Socialist Republic of Vietnam, Pham Minh Chinh, and Vice President and Prime Minister of the United Arab Emirates (UAE), Mohammed bin Rashid Al Maktoum, witness the signing of the Vietnam-UAE Comprehensive Economic Partnership Agreement.

Breakthrough in opening up potential large markets in the Middle East, Africa, Southern Europe, and the Halal market through the negotiation and signing of the Vietnam-UAE Comprehensive Economic Partnership Agreement (CEPA), paving the way for potential new FTAs

The CEPA is the first free trade agreement between Vietnam and an Arab country, further expanding opportunities for Vietnamese businesses in the Halal market, which serves over 2 billion Muslims worldwide. The establishment of Halal standards, from production to distribution, is becoming an important trend, presenting significant prospects for Vietnamese enterprises.

Additionally, amid challenges in the export market, the Ministry of Industry and Trade continued to promote and negotiate towards signing FTAs with the European Free Trade Association (EFTA), the Southern Common Market (MERCOSUR), and Canada, in addition to traditional markets.

E-commerce surpasses 25 billion USD, growing by 20% compared to 2023 and accounting for 9% of total retail sales of goods and services and 2/3 of Vietnam’s digital economy value, maintaining its position in the top 10 countries with the fastest-growing e-commerce in the world

In 2024, the e-commerce market size is expected to exceed 25 billion USD, a 20% increase compared to 2023, accounting for approximately 9% of the country’s total retail sales of goods and service revenue. Currently, the e-commerce market size accounts for 2/3 of the country’s digital economy value and has helped Vietnam enter the top 10 countries with the fastest-growing e-commerce in the world, driving economic growth and leading digital transformation in businesses.

Robust growth of the domestic market by 9%, ensuring major balances and stable supply and demand after 15 years of implementing the “Vietnamese People Give Priority to Using Vietnamese Goods” campaign; serving as a pillar for achieving macroeconomic growth targets

In 2024, the total retail sales of goods and service revenue in the country increased by 9% compared to 2023, achieving the high-level plan. The growth of the domestic market has contributed to maintaining macroeconomic stability, controlling inflation, and ensuring major economic balances. The Ministry of Industry and Trade also ensured the supply of gasoline for the economy, flexibly managed the gasoline market in 2024, and actively improved the legal framework for gasoline business management.

Significant innovation in trade promotion towards accelerating digital transformation, green transition, and sustainability; enhancing the value of Vietnam’s national brand to over 500 billion USD for the first time, ranking 32nd globally

According to the 2024 report by Brand Finance, the value of Vietnam’s national brand reached 507 billion USD, ranking 32nd out of 193 countries, up one rank and 2% in value compared to 2023. This growth rate is impressive, considering the 2023 value of over 498 billion USD, reflecting a continuous double-digit percentage increase in brand value.

The handling of foreign trade defense cases has achieved positive results in 2024, such as the termination of trade defense investigations by the US on wooden cabinets, extruded aluminum, and steel pull carts; cooperation among enterprises to enjoy 0% tax in Turkey’s investigation of solar energy cell trade defense… helping many industries maintain their export markets.

Proactive and solid trade defense, successfully handling most cases and protecting Vietnamese goods on their journey to the world

Out of nearly 30 new trade defense investigations initiated by foreign countries in 2024, Vietnamese export goods faced 5 double investigations (both anti-dumping and anti-subsidy) and 6 anti-subsidy investigations. Additionally, South Africa initiated an investigation against Vietnam for the first time, bringing the total number of countries/territories that have investigated trade defense measures against Vietnam to 25. The United States remains the market with the highest number of investigations, accounting for about 1/3 of the total. Apart from new investigations, the Ministry of Industry and Trade has advised and led the successful handling of most of the over 100 cases from previous years that were still under investigation or review for the application of measures.

As a result, the handling of foreign trade defense cases has achieved positive outcomes in 2024, such as the termination of trade defense investigations by the US on wooden cabinets, extruded aluminum, and steel pull carts; cooperation among enterprises to enjoy 0% tax in Turkey’s investigation of solar energy cell trade defense, helping many industries maintain their export markets.

Proactive and decisive action towards a “lean, efficient, and effective” apparatus in the spirit of the conclusion of Resolution 18, proposing to streamline nearly 18% of the units under the Ministry and streamlining the internal operational apparatus

Following the direction of General Secretary To Lam, streamlining the apparatus is a “revolution” that must be carried out by the entire political system, from the central to local levels. Although the Ministry of Industry and Trade is not required to merge under the Central’s policy, it has proactively taken action. The Ministry has continued to restructure, ending the operation of the General Department of Market Management, reorganizing and streamlining many functional departments, schools, institutes, and units; reducing the number of civil servants and public employees in administrative agencies; and aiming for an efficient, effective, and powerful management and operational model that meets the requirements of the new era. The Ministry of Industry and Trade proactively proposed streamlining nearly 18% of the units under the Ministry.

Huy Khai