Importing and exporting with European - American markets decreased by 9.5%

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Export turnover with some key markets decreased sharply: the United States is expected to reach US $96.9 billion, down 12.4%; EU reaches US $ 43.7 billion, down 6.7% compared to 2022. Photo: Nguyen Hien

Exports to some key markets decreased sharply

General exports to the European-American market are expected to reach about US $166 billion, down 9.6%; Imports are expected to reach nearly 41 billion USD, down 9.1%. According to the European-American Market Department, Vietnam's trade surplus with the European and American markets is expected to reach US $125 billion, of which the surplus with European countries is about US $33 billion, and with the Americas reached about US $92 billion.

Assessing the cause of the decline in import and export with the Europe-America region, the Europe-America Market Department said that, with a large economic openness, Vietnam's import-export activities are directly affected by the decline in the global economy in the first half of 2023; Although there will be recovery in the second half of 2023, the pace is slow and uneven among economies.

In addition, the demand for imported goods in Vietnam's main export markets decreased compared to the same period last year. According to statistics from Vietnam's import markets, in the first 10 months of 2023, the EU will reduce imports from non-bloc markets by nearly 16%; US imports from the world decreased by 6%.

According to the European-American Market Department, although inflation has been controlled, it is still at a high level, combined with pressure from geopolitical instability, profound changes in behavior and consumption habits in European-American countries leading to more difficulty maintaining export markets.

“For the first time after many years of continuous high growth, export turnover to some key markets decreased sharply such as: the United States is expected to reach US $ 96.9 billion, down 12.4% compared to 2022; EU reached US $43.7 billion, down 6.7%; CPTPP countries in the Americas reached US $13.1 billion, down 10.6%. Only the UK market, EAEU countries, Mercosur countries and some small markets are expected to see export growth of 3.1%, 12.7% and 10%, respectively. The report of the European-American Market Department clearly points out.

Vietnam's main export products to this market include: machinery, equipment, other tools and spare parts; phones, computers and accessories; Computers, electronic products and components; textiles; leather shoes and bags; wood and wood products; seafood... all witnessed an average decrease of over 10% compared to 2022.

However, the export of some products has seen good growth, such as: cameras, camcorders and components increased by 27% (nearly US $1.2 billion); iron and steel of all kinds increased by 23.5% (US $3.1 billion); means of transport and spare parts increased by 12.6%; and some agricultural products such as: rice increased by 53.3% (US $65.5 million), cashew nuts increased by 10.2%, vegetables and fruits increased by 10.2% (US $609.5 million).

​ The effective new market expansion strategy

According to the European-American Market Department, in the context of export difficulties in many traditional markets, activities to support businesses diversify markets, diversify export products and diversify export channels Vietnamese goods exports have been expanded.

When traditional markets face difficulties, the growth rate in new and niche markets is very high. For example, export turnover in the first 11 months of 2023 increased by 12.1% in EFTA countries, 12.7% in EAEU countries, 48.5% in Central Asian countries, Mercosur bloc with Argentina increased by 17.9 %, Brazil 9.1%, Paraguay 20.8%.

In addition, activities to implement the Project "Promoting Vietnamese Enterprises to directly participate in foreign distribution networks by 2030", with the orientation of supporting businesses and localities to directly penetrate foreign distribution networks the wholesale and retail distribution system for both natives and Asians in European and American countries is promoted. The initial step was to achieve very practical success as the weekly sales of Vietnamese goods at major distribution systems in the world (Carrefour, Aeon, Central Retail...) became an annual event.

Some Vietnamese agricultural products such as rice, spices, instant foods... have been on shelves abroad with their own brands. In particular, the Vietnam International Sourcing 2023 international goods supply chain connection event has attracted the attention and participation of hundreds of importers and international purchasing systems coming to Vietnam to find suppliers.

According to the European-American Market Department, in 2024, import-export activities will show favorable signs as existing FTA agreements with European-American market partners continue to have a positive impact, maintaining Vietnam's advantages in trade and investment activities. Market demand in the world and in Europe and America is gradually recovering.

In addition, the fact that industrialized countries continue to promote strategies to diversify supply sources, diversify supply chains, and diversify investment has helped Vietnam become an important production and important export center in the global value chain. At the same time, the trend of green economic development, digital transformation, and circular economy opens up many new opportunities for cooperation.

However, the European-American Market Department stated that the trend of "de-globalization" is continuing to rise strongly, and the protectionist policies of countries are increasing; The fact that developed countries are increasingly paying more and more attention to issues of sustainable development, climate change prevention, and consumer safety continues to be the premise for setting up new standards and new regulations related to consumer safety. regarding supply chains, raw materials, labor, and the environment are more stringent for imported products. In addition, countries diversifying their supply sources outside of China will increase competition in Vietnam's export markets.

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