Insight:
- Vietnam’s exports in 2024 reached a record $403 billion, with key sectors like seafood, agriculture, and textiles driving impressive growth. For 2025, the country aims for a 12% export increase, targeting $11 billion in seafood, $8 billion in agricultural products, and $47-48 billion in textiles.
Vietnam’s exporting industry made great strides in 2024, setting new records and making strong preparedness for further development in 2025. With exports close to $800 billion and export revenues exceeding $403 billion, Vietnam localization proved able to adapt to a tough international market. Vietnam’s export base industries, such as seafood, agriculture, textiles, and footwear, are optimistic and agree on the competitive outlook for the coming year, further enabling Vietnam to meet the existing challenges. Despite these challenges, Vietnam is on track to cement its status as a dominant exporter globally.
Record-breaking achievements
In her speech regarding the annual meeting review of 2024 performance and strategizing on goals for 2025, Deputy Minister of Industry and Trade Phan Thi Thang asserted that the sector successfully exceeded all planned targets for 2024.
Foreign trade was a standout contributor to economic growth. Total import-export turnover hit nearly $800 billion, a 15% increase compared to the previous year. This figure surpassed the target by 2.5 times. Exports alone reached $403 billion, growing by 13.6% from 2023. Vietnam’s export growth outpaced many countries in ASEAN and Asia.
Despite uncertainties, the goal of 12% export growth will be set by the Ministry of Industry and Trade for 2025. In 2024, the seafood sector achieved $10 billion in export revenue. According to Nguyen Thi Thu Sac, Chairwoman of the Vietnam Association of Seafood Exporters and Producers (VASEP), this achievement depicts the industry’s optimism.
Key seafood products experienced positive growth:
- Shrimp: $4 billion (up 16.7%).
- Tuna: nearly $1 billion (up 17%).
- Pangasius: $2 billion (up 9.6%).
After China and Norway, Vietnam now ranks third in the global seafood export market. These milestones set a foundation for the 2025 export goal of the seafood industry set at $11 billion.
Remarkable Progress in Agricultural Products
Agricultural exports also broke records. In 2024, fruits and vegetables brought in $7.2 billion, up 27%. Durian was a major contributor, accounting for $3.2 billion of this total.
- Looking ahead, new opportunities are emerging for agricultural exports:
- Frozen durian and fresh coconuts are expected to thrive in China.
- Passion fruit is likely to enter the U.S. market.
The achievement of exports of $8 billion in 2025 puts Vietnam among the world’s top five exporters of fruits and vegetables. The Vietnam Fruit and Vegetable Association has made this prediction.
Ambitious Goals for Textiles and Footwear
Textiles and footwear also ended 2024 with strong results:
- Footwear and handbags: Revenue, $26 billion (up by 10%); target set for 2025 – $29 billion, 10% growth rate maintained. Vietnam is number three in the world in shoe production, after China and India, but is number two in exports after China.
- Textiles: Revenue reached $44 billion in 2024. For 2025, the sector aims for $47-48 billion. Many companies have secured orders through Q1 2025, and some even until Q2.
Vũ Đức Giang, Chairman of the Vietnam Textile and Apparel Association, highlighted the sector’s progress in adopting technology and automation. Despite rising costs, which have increased by 47% over the past five years, companies have maintained competitive pricing and profitability.
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Challenges Ahead
While the export sectors have set ambitious targets for 2025, challenges remain. The seafood industry, despite its achievements, faces obstacles such as:
- Addressing the EU’s yellow card for illegal, unreported, and unregulated (IUU) fishing.
- Adapting to climate change and environmental pollution.
- Overcoming market barriers.
Similarly, the textile sector is under pressure to meet green standards. Many buyers now require factories to comply with environmental standards. Companies must either adapt or risk losing contracts.
Additionally, global market fluctuations pose risks. Some companies have reported cases of order cancellations even after production begins, as buyers react to sudden drops in demand.
Rising Trade Protectionism
Trade protectionism is becoming a major hurdle. Countries are implementing stricter measures to protect domestic industries. The U.S., a key export market for Vietnam, has increased trade defense investigations. In 2024, Vietnam faced 27 trade defense cases, 11 of which were initiated by the U.S.
Key trends in U.S. investigations include:
- Dual investigations (anti-dumping and anti-subsidy in a single case).
- Group investigations (simultaneous investigations of multiple countries).
According to Truong Thuy Linh – Deputy Director of the Trade Remedies Authority of Vietnam, the U.S. policies are getting increasingly harsh. For example, this year, the U.S. defined cross-border subsidization. In addition, the U.S. has not accepted Vietnam as a market economy, which makes lite inspections and disadvantages Vietnamese exporting firms.
Solutions for 2025
To mitigate these difficulties, companies and organizations seek to broaden export markets, emphasizing countries with FTAs with Vietnam. In 2024, a comprehensive economic cooperation agreement with the UAE was signed, allowing operations in the Middle Eastern market.
After experiencing challenges throughout 2024, Vietnam’s export sectors are prepared to address obstacles and remain competitive in 2025.
Conclusion
In 2024, Vietnam managed to accomplish exports, which showcased the country’s flexibility and strength in an internationally competitive market. Even with the challenge of trade protectionism, green production standards, and ever-changing market conditions, Vietnam’s industries are tapping into new opportunities and diversifying into new markets. With the right strategies and investments in technology, the nation is likely to meet its targets for 2025 and cement its place in international trade.
