The Power of Export Growth: A Triple Threat Success Story

Goods Exports Continue to be a Bright Spot

The Report on Industrial Production and Trade Activities in July 2024, recently released by the Ministry of Industry and Trade, highlights that with the gradual recovery of the world market and increasing export orders, import and export activities in the first seven months of 2024 have shown positive developments and achieved encouraging results.

Specifically, in July, the import and export turnover of goods is estimated at 69.72 billion USD, up 8.7% compared to the previous month and up 21.8% over the same period last year. For the first seven months of 2024, the total import and export turnover of goods reached 439.88 billion USD, up 17.1% over the same period last year, of which exports grew by 15.7% and imports by 18.5%. The trade balance of goods recorded a surplus of 14.08 billion USD.

Goods exports continued to be a bright spot in the overall economy in the first seven months of 2024, indicating a strong recovery. Export turnover in July 2024 is estimated at 35.92 billion USD, up 6.7% compared to the previous month. Of this, the domestic economic sector reached 9.87 billion USD, up 9.8%; the foreign-invested sector (including crude oil) reached 26.05 billion USD, up 5.6%. However, compared to the same period last year, export turnover in July is estimated to have increased by 19.1%, with the domestic economic sector up by 25.9% and the foreign-invested sector (including crude oil) up by 16.7%.

For the first seven months of 2024, export turnover is estimated at 226.98 billion USD, up 15.7% over the same period last year. Of this, the domestic economic sector reached 63.08 billion USD, up 21.1% and accounting for 27.8% of total export turnover; the foreign-invested sector (including crude oil) reached 163.9 billion USD, up 13.8% and accounting for 72.2%. In the first seven months of 2024, 30 commodity groups achieved export turnover of over 1 billion USD, accounting for 91.9% of the total export turnover (including nine groups with turnover of over 5 billion USD, accounting for 70.8%).

Notably, in the first seven months of 2024, exports grew strongly and consistently across all three groups of goods. Specifically, the group of agricultural products continued its growth momentum from 2023, with a total export turnover of about 21.4 billion USD, up 19.6% over the same period in 2023, accounting for 9.4% of the country’s total export turnover. Due to higher export prices, most commodities in this group achieved high export turnover growth rates in double digits compared to the same period last year, including: coffee up 30.9%; rice up 25.1%; tea up 34.8%; fruits and vegetables up 24.3%; cashew nuts up 22.1%; pepper up 46.3%; cassava and cassava products up 12.5%.

The export turnover of the group of industrial manufacturing products is estimated at nearly 192 billion USD, accounting for 84.6% of the total export turnover and up 15.4% over the same period in 2023. Many product groups achieved high growth rates, including key export items such as: cameras, camcorders and parts up 51.5%; computers, electronic products and components up 30%; plastic products up 29.9%; wood and wooden products up 23.3%; iron and steel products up 9.8%; machinery, equipment, tools and other components up 19%; textiles and garments up 4.3%; footwear of all kinds up 10.1%; telephones and parts up 12.3%…

The export turnover of the group of fuel and mineral products is estimated at 2.35 billion USD, slightly up compared to the same period in 2023 (up 0.6%).

Export turnover to most markets, especially those that are major trading partners of Vietnam, in the first seven months of 2024 has shown a strong recovery and achieved high growth rates in double digits.

Among them, the United States continues to be Vietnam’s largest export market with an estimated turnover of 66.09 billion USD, accounting for 29% of the country’s total export turnover and up 24.4% over the same period last year (in the same period last year, it decreased by nearly 20%); followed by China with an estimated turnover of 33.38 billion USD, up 7.2%; the EU market with an estimated turnover of 29.34 billion USD, up 15.8%; South Korea with an estimated turnover of 14.39 billion USD, up 9%; and Japan with an estimated turnover of 13.46 billion USD, up 2.8%.

Promoting Trade Promotion and Support for Import and Export Activities

To accompany businesses and cooperatives in their export activities, Deputy Minister of Industry and Trade Phan Thi Thang said that the Ministry will continue to closely monitor the developments in various markets and the import-export policies of other countries to promptly inform associations and businesses. The focus will be on the situation of the Russia-Ukraine conflict; escalating conflicts in the Gaza Strip and the Red Sea; developments in the China-EU trade dispute; trends towards sustainable and green development in EU industries, and new regulations on supply chain verification for EU export sectors.

Intensify trade promotion activities for key markets, especially taking full advantage of the benefits offered by FTAs such as CPTPP, EVFTA, and RCEP…

Expedite negotiations, signing, and ratification of new FTAs and economic partnerships, initially with Israel and the UAE, to diversify markets, supply chains, and boost exports. Support businesses in carrying out trade promotion activities in new and potential markets that individual businesses have not yet had the opportunity to directly penetrate.

Instruct the Vietnam Trade Offices in various market regions to regularly update information on the situation of foreign markets; regulations, standards, and conditions of foreign markets that may affect Vietnam’s import and export activities, and provide recommendations to local authorities, associations, and import-export businesses.

At the same time, coordinate with relevant agencies and localities in Vietnam to enhance exchanges with Chinese agencies and localities to improve the efficiency and regulate the pace of customs clearance for import and export goods at border gates between Vietnam and China, especially for agricultural and aquatic products with seasonal characteristics; implement measures to promote cooperation with China on border trade infrastructure and promote the construction of border trade infrastructure in northern border localities.

Strengthen early warning activities for foreign trade remedy cases against Vietnamese exports; work on anti-circumvention and anti-origin fraud; and continue to support businesses in responding to foreign trade remedy cases that have been and are being investigated.