Export target for 2024 set at US$400 billion

Vietnam's export of goods has seen significant growth in key markets. Photo: Vietnam+

Key sectors accelerating

Over the past eight months, Vietnam's import and export activities have achieved many positive results, particularly in major markets such as the US, the EU, Japan, and South Korea, all experiencing high growth. It is forecasted that in the remaining months of the year, businesses would take advantage of market opportunities to boost product consumption, thereby contributing to overall economic growth.

In the first eight months, 30 items reached an export turnover of over US$1 billion, accounting for 92.3% of the total export turnover (with six items exceeding US$10 billion, accounting for 62.6%). Exports grew strongly and evenly across all three groups of goods. The agricultural group extended its growth momentum from 2023 until now, with total export turnover estimated at US$25.19 billion, up 20.7% compared to the same period in 2023, accounting for 9.5% of the country's total export turnover. Due to higher export prices, most items in this group achieved high double-digit growth rates compared to the same period last year, such as coffee (up 36%), rice (up 21.7%), tea (up 33%), fruits and vegetables (up 31%), cashew nuts (up 23%), and pepper (up 44.9%).

The export turnover of processed and manufactured goods reached nearly US$225 billion, accounting for nearly 85% of the total export turnover and increasing by 15.8% compared to the same period last year. Many product groups achieved high growth rates, including key export items such as cameras and components (up 40.4%), computers, electronic products and components (up 28%), plastic products (up 31%), wood and wooden products (up 21.8%), iron and steel (up 11.8%), machinery and equipment (up 22.5%), textiles and garments (up 7.3%), footwear (up 12.7%), and phones and components (up 11.5%).

The export turnover of the mineral fuels group reached US$2.78 billion, a slight increase compared to the same period in 2023 (up 0.8%).

Pham Thi Ngoc Thuy, Director of the Private Economic Development Research Board (Board IV), stated that international market demand was gradually recovering, leading to improvements in domestic industrial production and export-related services, contributing to the economy's recovery.

According to statistical data, the economy accelerated in the first half of 2024, growing by 6% compared to 5% in the first half of 2023, thanks to the recovery in exports of processed and manufactured goods. Imports and exports of goods grew faster than forecast for the first half of 2024 due to stronger external demand, with exports and imports increasing by 16.9% and 17%, respectively, compared to the same period last year. Trade growth also contributed to the gradual recovery of domestic demand. Export-related services (transportation and warehousing) benefited from the recovery in exports of goods. Credit growth improved after a period of very slow growth earlier in 2024 (reaching 13.5% by June 2024 compared to the same period last year), mainly due to improvements in export, manufacturing, and trade activities.

"To achieve such results, in addition to the support from the Government and State management agencies, the self-effort of businesses must also be emphasized," said Thuy. She added that the latest business confidence survey by Board IV showed that the most positive aspect was that industrial production confidence has returned and reached 2.57/5, the highest among all sectors. This aligns with statistical data showing that the national industrial production index increased by 8.5% compared to the same period in 2023, with the processing and manufacturing industry increasing by up to 9.5%.

Many businesses have not only overcome challenges in business management in general but also pioneered new requirements related to green and sustainable transformation, digitization, and adapting to new technical regulations in international trade transactions. "From a business size perspective, not only have large businesses shown effort, but many advanced and sustainable models have also emerged among small and medium units. Sustainable business ideas related to ecology, recycling, ..., have been the focus of many enterprises in various sectors, from industrial production to agriculture and specific sub-sectors," said Thuy said.

According to Truong Van Cam, Vice Chairman and General Secretary of the Vietnam Textile and Apparel Association, the Vietnamese textile and garment industry has seen improvement because major markets such as the US and the EU have managed to control inflation, leading to increased purchasing power. Inventory levels of brands in 2023 have decreased, and some textile and garment enterprises are now seeking smaller companies through the association to outsource orders. Additionally, Vietnamese textile and garment enterprises have proactively diversified their markets and customers in recent times.

Toward sustainable exports

According to the Ministry of Industry and Trade, although export activities have achieved positive results, they still rely on a few major markets and are significantly affected by disruptions in the supply chain, logistics, and global market. Despite achieving high growth in exports and imports over the first eight months of 2024, the results are largely due to the relatively low growth rate of the same period last year, and this growth rate is still lower than the rates of the years before the Covid-19 pandemic. The increased export prices of some agricultural products such as rice, pepper, and coffee help increase export value but carry the risk of supply chain disruptions due to the lack of professionalism of enterprises and suppliers.

Furthermore, Vietnam's key export items to major markets like the EU and the US face pressures related to trade defense investigations, origin fraud, and technical barriers related to the environment, sustainability, and green transformation.

To boost exports, the Ministry of Industry and Trade will continue to focus on promoting export activities to key markets, particularly by maximizing the benefits provided by the FTAs such as CPTPP, EVFTA, and RCEP. It will expedite negotiations, signing, and ratification of new FTAs and economic linkages, initially with Israel and the UAE, to diversify markets, supply chains, and promote exports. It will also support enterprises in conducting trade promotion activities in new and potential markets where individual enterprises have not yet had the opportunity to directly penetrate.