Two-Digit Growth in Merchandise Exports for Eight Consecutive Months
Merchandise exports witness two-digit growth for eight months. (Photo: Duc Duy/Vietnam+)
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The market’s positive recovery has boosted export growth across the three main sectors: processed industrial products, mineral fuels, and agricultural products. The increase in export prices has helped the agricultural sector rake in over $25 billion in the past eight months.
US and EU Markets Show Strong Recovery
According to the Ministry of Industry and Trade, Vietnam’s export turnover reached an estimated $265.09 billion in the first eight months of 2024, marking a 15.8% increase compared to the same period last year. Agricultural products have been on an upward trajectory since 2023, with a total export turnover of $25.19 billion, up 20.7% from 2023, and accounting for 9.5% of the country’s total export turnover.
“Due to rising export prices, most items in this group witnessed double-digit growth rates compared to the previous year. For instance, coffee exports surged by 36%, rice by 21.7%, tea by 33%, fruits and vegetables by 31%, cashew nuts by 23%, and pepper by 44.9%,” informed the Ministry of Industry and Trade.
In the first eight months, the export turnover of processed industrial products reached nearly $225 billion, accounting for almost 85% of the total export turnover and reflecting a 15.8% increase compared to the same period last year.
Many products recorded high growth rates, including key export items such as cameras and camera parts (up by 40.4%); computers, electronic products, and components (up by 28%); plastic products (up by 31%); wood and wooden products (up by 21.8%); iron and steel products (up by 11.8%); machinery, equipment, tools, and other parts (up by 22.5%); textiles and garments (up by 7.3%); footwear (up by 12.7%); and telephones and components (up by 11.5%). Additionally, the export turnover of mineral fuel products reached $2.78 billion, a slight increase of 0.8% compared to 2023.
Trương Văn Cẩm, Vice President of the Vietnam Textile and Apparel Association (VITAS), shared that the textile and garment industry’s export turnover reached approximately $28.3 billion in the past eight months, reflecting a 6.2% increase compared to the same period last year.
“What’s encouraging is that as we approach the year-end months, the export situation is looking more favorable,” said Cẩm. VITAS also forecasts that the textile and garment industry will achieve its set target of $44 billion in export turnover for the whole of 2024.
The Ministry of Industry and Trade attributed these positive results to the strong recovery and double-digit growth in exports to most key markets.
 Trade promotions boost consumption. (Photo: PV/Vietnam+)
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For instance, exports to the US are estimated at $77.9 billion, accounting for 29.4% of the country’s total export turnover and marking a significant 25.4% increase compared to the previous year (during which there was a 19% decrease). Other major markets include China, with a turnover of $37.86 billion, up 2.8%; the EU, with $34.4 billion, up 18.5%; South Korea, with $16.8 billion, up 8.3%; and Japan, with $16.1 billion, up 5.6%.
Enhancing Market Strategies
On the import side, there has also been positive growth. According to the Ministry of Industry and Trade, Vietnam spent approximately $246.02 billion on imports in the first eight months, mainly on raw materials to serve production and fulfill new orders.
Import turnover of computers, electronic products, and components reached an estimated $69.9 billion, a 26.9% increase compared to the same period in 2023, and accounted for 28% of the country’s total import turnover. Meanwhile, the import turnover of machinery, equipment, tools, and spare parts reached $31.2 billion, up 16.7%.
Additionally, the import turnover of goods subject to import restrictions in the first eight months reached $13.18 billion, an 8% increase compared to the same period last year. Some items with high import turnover include electrical appliances and components (up by 19.5%), fruits and vegetables (up by 12.2%), and auto parts for cars with fewer than nine seats (up by 11%).
Consequently, in the first eight months, the trade balance of goods recorded a preliminary surplus of $19.07 billion (compared to a surplus of $19.9 billion in the same period last year). Specifically, the domestic economic sector had a trade deficit of $15.7 billion, while the foreign-invested sector (including crude oil) had a trade surplus of $34.77 billion.
However, the Ministry of Industry and Trade noted that export and import activities in the remaining months of the year would still depend on several markets, items, and the FDI sector. Additionally, some key export items to major markets (EU and US) continue to face challenges related to trade remedy investigations, technical barriers related to the environment, sustainability, and green transition, among others.
The Ministry of Industry and Trade connects businesses to supply chains. (Photo: PV/Vietnam+)
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To maintain high growth rates, the Ministry of Industry and Trade has implemented various solutions, focusing on promoting export activities in key markets and taking full advantage of FTAs such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA). The ministry is also expediting negotiations, signing, and ratification of new FTAs and economic partnerships, initially with Israel and the UAE, to diversify markets, supply chains, and boost exports.
To further stimulate the market, the Ministry of Industry and Trade is intensifying trade promotion activities, targeting new and potential markets that individual businesses have not yet had the opportunity to penetrate directly. Regular trade promotion conferences are held with the Vietnamese trade offices abroad, and these offices are instructed to regularly update information on foreign market conditions, regulations, standards, and conditions that may impact Vietnam’s import and export activities. They also provide recommendations to local authorities, associations, and import-export enterprises.
Additionally, measures are being implemented to promote cooperation with China on border trade infrastructure and the development of border trade infrastructure in northern border localities to facilitate the smooth flow of goods and enhance export value.
Duc Duy
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