Insight:
- Vietnam is rising and proving its position in the import and export sector.
- Businesses and the government have made innovations that contribute to developing imports and exports.
In recent years, Vietnam has become one of the prominent countries with strengthened imports and exports. The number of exports transferred from China to Vietnam has become a trend.
The market overview in the first nine months of 2024
In the first nine months of 2024, the total preliminary import and export reached $578.47 billion, up 16.3% over the same period last year (according to the General Statistics Office, Ministry of Planning and Investment).
The export industry has a 15.4% increase and imports are 17.3%; the trade balance of product surplus reaches $20.79 billion. Preliminary exports also reached $108.6 billion in quarter 3 of 2024, up 15.8% compared to the same period in 2023 and up 10.6% over the second quarter of 2024.
In summary, just in the first nine months of the year, preliminary exports reached 299.63 billion USD, a 15.4% increase from the same period last year. There are about 30 items with over 1 billion USD exporting, accounting for 92.3% of total export turnover (including 7 items with export turnover of over 10 billion USD, accounting for 66.4%).
With imports, Vietnam’s preliminary import turnover reached 99.74 billion USD, up 17.2% over the same period last year. They also increased 6.1% over the second quarter of 2024.
There are about 40 imported items with over 1 billion USD value, accounting for 91.5% of total import turnover (there are three imported items with over 10 billion USD, accounting for 45%).
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Factors promoting the development of Vietnam’s import-export
In 2024, Vietnam’s imports and exports increase is said to be driven by many factors, of which the following are notable. Explore these factors with the following information:
Network of trade agreements
The first factor that helps Vietnam promote the import and export processes is the network of free trade agreements (FTAs). They recently had many FTAs such as RCEP, EVFTA, and UKVGTA, which will open to international trade and investment. There will be more FTAs in the future in the landscape that Vietnam tries to boost collaborative relationships.
Current Vietnam Economic Situation
Vietnam is witnessing growth in many aspects and economic sectors. This growth is expected to continue and increase in the coming period. Domestic consumption is expected to increase by 20% per year.
The General Statistics Office (GSO) report shows the total retail and service revenue in the first three quarters of the year, reaching a record VND 4.7 trillion (US$190 million), an 8.8% increase year-on-year, reflecting the economic recovery.
Competitive labor costs
Vietnam is in the top 10 countries on the lowest minimum wage list (based on the Velocity Global platform). Their labor costs are also lower than other countries in the region.
The minimum wage range of Vietnam’s labor salary is about USD 140 (VND3,445,000) to USD 202 (VND4,960,800) per month. This cost makes Vietnam one of the attractive locations for labor-intensive industries such as textiles, garments, footwear, and electronics manufacturing.
Government support
The political environment in Vietnam is relatively stable; the government has many policies to encourage import and export. Notable among them are infrastructure investment, simplification of customs procedures, and encouragement of domestic and foreign enterprises. The new policies have promoted Vietnam’s import and export.
Diversified export markets
Vietnam achieved success in diversifying its export markets and promoting key products. Their products become more popular and approach more global consumers. This helps Vietnam’s exports are mainly exported to various countries such as the United States, the European Union, China, and ASEAN.
Developed manufacturing and industrial bases
In Vietnam, many manufacturing sectors invested significantly, especially in electronics, garments, and furniture. This helps this country’s ability to produce large-scale goods, along with improvements in technology and infrastructure. That means Vietnam can meet the growing demand of the international market, contributing to the export industry.
Digital transformation and growth of e-commerce
Many Vietnamese enterprises have grasped digital transformation, accessing the global market more easily. The rise of e-commerce platforms and proactive access to international trading floors have helped Vietnamese enterprises access foreign markets more easily.
Top sectors in the import-export market
Also, according to the report from the General Statistics Office, the export situation of goods reached a high level. The prominent commodity groups with high export proportions:
- The fuel and minerals sector reached 2.92 billion USD, representing 1.1%;
- The agricultural and forestry products reached 22.53 billion USD, representing 8.5%;
- The aquatic products reached 6.31 billion USD, representing 2.4%.
The group of processed industrial goods in the past eight months reached the largest value of 233.3 billion USD, accounting for 88% of the total export turnover, an increase of 15.4% over the same period last year.
Items with high export value increased compared to the same period last year. Including:
| Product | Growth rate | Reach (USD) |
| Cameras, camcorders, and components | 41.9% | 5.4 billion USD |
| Plastic products | 31.2% | 4.3 billion USD |
| Electronics, computers, and components | 28.9% | 46.3 billion USD |
| Machinery, equipment, tools, and other spare parts | 21.8% | 32.7 billion USD |
| Iron and steel | 14.1% | 6.5 billion USD |
| Footwear | 11.8% | 14.9 billion USD |
| agricultural and forestry products group (the highest increase among the exporting products) | 24.9% | 22.53 billion USD |
| Pepper | 42.6% | 877 million USD |
| Coffee | 34.8% | 4 billion USD |
| Tea | 33.5% | 163 million USD |
| Vegetables and fruits | 33.2% | 4.7 billion USD |
| Wood and wood products | 22.3% | 10.4 billion USD |
| Rice | 21.7% | 3.9 billion USD |
| Cashew nuts | 21.6% | 2.8 billion USD |
In addition, the two remaining groups of goods only achieved low growth rates: seafood increased by 4.9%, and fuel and minerals increased by 0.6%.
The results were achieved thanks to the increase in export orders in key groups such as textiles, footwear, and leather, along with the continued flow of foreign investment into Vietnam, in addition to the stunning restoration of the processing and production industry. In particular, it is impossible not to mention the export of agricultural products, which have both good harvests and prices.
Vietnam import-exports are expected to reach 800 billion VND
Based on the positive data about the import-export situation, Vietnam experts expect that the total premonitory will reach 800 billion in 2024. New opportunities and steps can be opened for 2024.
Vietnam’s export market is recovering after the economic crisis, but its key industries are also facing many challenges, such as a lack of labor, high production costs, and strict requirements for the international market. With the data from previous years and in the first nine months of this year, achieving an import-export turnover of 800 billion VND can be feasible.
Conclusion
Vietnam’s import-export situation is gradually recovering and has strong development steps. However, if Vietnam wants to maintain this growth momentum, it needs to improve the production process, and businesses should enhance the competitiveness of enterprises due to fluctuations in the international market. And remember to follow the SourceVietnam.com blog for more interesting market information!
