The value of merchandise exports in 2023, although decreased by 4.4% compared to the previous year (estimated at $ 355.5 billion), still had 35 items with export value exceeding $1 billion, including 7 items with export value exceeding $10 billion. Based on the country’s GDP growth target of 6% – 6.5% in 2024, the Ministry of Industry and Trade sets a target to increase export value by 6% this year, equivalent to $377 billion, maintaining a trade surplus of about $15 billion.
In 2023, Vietnam had 7 items with export value exceeding $10 billion
Increase in consumer demand opens up new orders
Global economy is gradually recovering, and export orders have been improving since Q4/2023,… are factors that make businesses confident in the promising export market in 2024. In the textile industry, Mr. Than Duc Viet, CEO of May 10 Joint Stock Company, affirmed that the company will focus on actively seeking and exploring domestic and international markets, ensuring employment for workers in the strategy of market diversification, product variety, and customers.
In addition, May 10 will continue to restructure its organization and machinery in a streamlined and reasonable manner; focus on serving production, research, and product conversions. “May 10 promotes research on new products, new materials, and at the same time accelerates the speed of sampling, mold making, sample quality,… to fulfill challenging orders, complex product structures, short delivery times,…,” Mr. Viet said.
Vietnam’s textile industry has new market dynamics and orders in 2024
Early forecasts indicate an improvement in the global economy, especially in the US with signals of possibly three interest rate cuts totaling 0.75% in 2024. According to Mr. Le Tien Truong, Chairman of the Board of Directors of Vietnam Textile and Garment Group (Vinatex), there are many positive factors that stimulate consumer demand to recover. “Competing countries face labor issues, armed conflicts within the country, while Vietnam is a safe destination and a new motivation for textile and garment orders to return to Vietnam in 2024”, Chairman of Vinatex assessed.
In terms of the export prospects for fruits and vegetables in 2024, Mr. Dang Phuc Nguyen, Secretary-General of the Vietnam Fruit and Vegetables Association (Vinafruit) said that it is forecasted that in 2024, the export value of the fruits and vegetables sector will exceed $6 billion. Especially with the Chinese market, this sector will expand in terms of products, scale, and market share amidst high consumption demand.
Therefore, to seize the opportunity, businesses need to apply good agricultural production practices, meet new market standards and regulations set by importing markets. “Businesses need to expand the range of officially exported fruits and vegetables. The state, farmers, businesses, and cooperatives need to continue to closely link and increase productivity and quality of fruits and vegetables to meet the requirements of importing countries,” Mr. Nguyen emphasized.
In 2024, the export value of the fruits and vegetables sector is forecasted to exceed $6 billion
Benefits from FTA continue to be utilized
Entering 2024, the inventory situation in many markets is gradually being resolved. Along with that, domestic businesses will continue to utilize the advantages from free trade agreements for import and export, which are favorable for Vietnam’s commodity trade.
According to Mr. Tran Thanh Hai, Deputy Director of the Import and Export Department (Ministry of Industry and Trade), the Ministry of Industry and Trade will continue to assist businesses in utilizing commitments in FTAs to boost exports, through disseminating information about Rules of Origin and issuing Certificates of Origin, opportunities and how to capitalize on opportunities from FTAs.
Domestic businesses continue to utilize the advantages from free trade agreements
Recognizing the huge potential for export activities in 2024, Assoc. Prof. Dr. Dinh Trong Thinh said that Vietnam has only utilized about 30% of the opportunities from FTAs, so businesses need to quickly seize the opportunities, exploit FTA preferences to enjoy many benefits from low tariffs, preferential treatments under the support mechanism among FTA signatories, by removing non-tariff barriers.
“The urgent task at present is to boost trade promotion with the roles and responsibilities of the Ministry of Industry and Trade, embassies, and commercial counselors in helping businesses promote products, provide market information to businesses. At the same time, functional agencies need to enhance early warnings and support businesses in avoiding trade defense measures,” Assoc. Prof. Dr. Dinh Trong Thinh put forward direction.
Also, according to trade experts, efforts to enhance negotiations and diversify export markets will continue to bring more competitive advantages for Vietnam’s exports in 2024 and subsequent years.
Despite that, to achieve the export growth target, businesses and industry associations also hope that the support for businesses will continue to be implemented in a specific and in-depth manner, following each market and industry. Among them, promptly overcoming the current limitations of Vietnamese businesses such as economic cycle access methods; sustainable production and consumption; updating market information and self-sufficiency in inputs as well as enhancing production capacity of businesses.
