New record of Vietnam trade

Vietnam's import-export turnover will approach the 800 billion USD mark for the first time in 2024, an increase of 102 billion USD compared to 2023. The road to reaching the 1,000 billion USD mark in trade is not too far away.

Vietnam's import-export turnover will approach the 800 billion USD mark for the first time in 2024, an increase of 102 billion USD compared to 2023. The road to reaching the 1,000 billion USD mark in trade is not too far away.

Despite fluctuations in the global economy, the seafood industry continues to achieve high export turnover in 2024. Photo: Duc Thanh

Import and export set new record

The total import-export turnover of our country is approaching the 800 billion USD mark in the last days of 2024, marking a record for Vietnam's foreign trade. With the implementation level increasing by more than 102 billion USD compared to 2023, the trade balance has been in surplus for the 9th consecutive year with 23 billion USD (from 2016 to present), contributing to ensuring the balance of payments and foreign exchange reserves for the economy.

Suppliers from Vietnam have exported a wide range of goods globally, from phones, computers, to textiles, agricultural, forestry and fishery products, worth 403 billion USD, an increase of 13.6% compared to 2023.

After negative import-export growth in 2023, reaching only 683 billion USD, down 6.6% compared to 2022, from the beginning of 2024, our country's export industries have seized the opportunity of the market increasing again to boost exports.

The recovery of consumer demand in many major markets has brought large importers to Vietnam - an increasingly important link in the global goods supply chain - to place orders.

Notably, key export industries such as electronics, textiles, footwear, and agriculture, forestry and fishery continue to play an important role, despite fluctuations in the global economy. In 2024, electronics will bring our country nearly 126 billion USD in export revenue, of which electronic computers and components will be in the top position for the second year, bringing in 71.7 billion USD.

Textiles, garments, and footwear reached approximately 71 billion USD. The agricultural sector also recorded a record of nearly 63 billion USD. Wood and wood products reached 16.2 billion USD, up 20.3%. Iron and steel reached 9.3 billion USD, up 11.8%...

By the end of 2024, the country will have 36 products with export turnover of over 1 billion USD, of which 7 products will have export turnover of over 10 billion USD.

“Exports are estimated to reach more than 403 billion USD, far exceeding the 354.7 billion USD of 2023, achieving a fairly high growth rate compared to many countries in the ASEAN and Asia regions,” Deputy Minister of Industry and Trade Phan Thi Thang emphasized at the 2024 Year-end Conference of the industry and trade sector.

For the whole year of 2024, exports to the US are estimated to reach 119.7 billion USD, up 23.4% compared to 2023; exports to the EU are estimated to reach 51.6 billion USD, up 18.3%; exports to ASEAN are estimated to increase by 13.6%; exports to South Korea are estimated to reach 25.5 billion USD, up 8.6%; exports to Japan are estimated to reach 24.6 billion USD, up 5.5%.

The rapid growth in trade scale is contributed by the "maturity" of production and export capacity of domestic enterprises.

According to statistics from the Ministry of Industry and Trade, in 2024, the export growth rate of the domestic economic sector will reach 18.9%, higher than that of the FDI sector (11.6%); the contribution ratio of the domestic economic sector to the total export turnover of the whole country will also be higher than in 2023 (28.9% compared to 26.9%).

At the same time, import activities are ensured with a suitable structure, basically meeting the demand for raw materials for production, export and consumption. The total import turnover for the whole year of 2024 will reach more than 380 billion USD.

The import of components, machinery, and input materials for production has grown again after a stagnant year in 2023, showing the recovery of production and business activities in the economy. At this time, many enterprises in the electronics, textile, and footwear industries have signed many orders for the first half of 2025.

The scale of the domestic manufacturing industry is growing thanks to the attraction of a huge amount of FDI capital into production. This is an important basis for increasing the capacity to supply goods, along with the level of deep integration of the economy, which has strongly boosted export activities.

International economic integration fuels trade

The record growth in trade activities in 2024 is strongly supported by the implementation of international economic integration programs. In addition to 16 free trade agreements (FTAs) signed and implemented with over 60 economies, Vietnam has successfully opened up large potential markets in the Middle East and Africa with the signing of the Vietnam - UAE Comprehensive Economic Partnership Agreement (CEPA), bringing the total number of signed FTAs ​​to 17.

It should be added that CEPA was negotiated in a record short time, only 16 months. The successful signing of CEPA contributes to further expanding Vietnam's "highway" for global trade integration.

In 2024, import and export will be a bright spot and one of the main drivers of economic growth, with the total annual turnover reaching a new record (nearly 800 billion USD), up 15% compared to 2023 and nearly 3 times higher than the assigned plan.

In 2025, the industry and trade sector aims for 12% export growth, meaning export turnover will increase by about 48 billion USD compared to 2024.

FTAs have been creating a “launching pad” for domestic exports. For example, exports to the EU market have witnessed a record growth of 18.3% compared to 2023, reaching a revenue of nearly 52 billion USD. After more than 4 years of implementing the Vietnam - EU Free Trade Agreement (EVFTA), Vietnamese goods have been welcomed and highly appreciated by European consumers, especially in the processing and manufacturing industry and agricultural products.

More importantly, to meet the strict requirements under the commitments in FTAs, domestic enterprises must constantly upgrade, innovate, and transform production, thereby helping enterprises compete effectively.

Ms. Nguyen Thi Huyen, CEO of Vietnam Cinnamon and Star Anise Export Joint Stock Company (Vinasamex, specializing in the production and export of spices and organic essential oils) said: "The FTAs ​​that Vietnam has signed open up great opportunities for export enterprises, including cinnamon and star anise production and export enterprises like Vinasamex".

Since the Vietnam - UK Free Trade Agreement (UKVFTA) or the Vietnam - EU Free Trade Agreement (EVFTA) came into effect, Vinasamex has had many advantages, due to reduced export taxes, creating a competitive advantage, helping Vietnamese agricultural products to the European region and especially the UK market have more advantages.

“The markets that Vietnam has signed FTAs ​​with are all ‘difficult’ and have high standards. To take advantage of the opportunities from the signed FTAs, in recent years, Vinasamex has focused on investing heavily in the quality of goods and increasing the value of products, instead of quantity,” said Ms. Huyen.

The struggle behind the numbers

Exports have overcome many obstacles and "reached the finish line" with impressive results, but if analyzed more closely, there are still many concerns and worries behind the numbers.

At the 2024 Year-end Conference of the Industry and Trade Sector, Deputy Minister Phan Thi Thang admitted: “The FDI enterprise sector still contributes over 70% of the country’s total export turnover. The trade surplus is created by the FDI enterprise sector, while the domestic enterprise sector often has a trade deficit.”

In a story with the press, sharing about the 2024 business results and 2025 plan of Vietnam Textile and Garment Group (Vinatex), CEO Cao Huu Hieu said that in 2024, Vinatex reached the finish line with revenue and profit exceeding expectations. Revenue reached 18,000 billion VND, up nearly 3%; consolidated profit increased by nearly 35%, reaching 740 billion VND. In the whole textile and garment industry, exports reached nearly 44 billion USD, but the FDI sector accounted for over 65% of the total turnover.

“Exports have grown, but mostly thanks to the FDI sector. Vietnamese enterprises are still small in scale, and their contribution to the total export turnover of the whole industry is still limited,” Mr. Hieu frankly acknowledged.

The limited participation of domestic enterprises in global production and supply chains is an obstacle that limits the benefits of the FTAs ​​that Vietnam has signed. In fact, FDI enterprises are the ones enjoying these benefits, thanks to their deep participation in the supply chain, high self-sufficiency in input materials, and ensuring the rules of origin according to FTAs. If we do not quickly improve and increase the participation of enterprises in the supply chain, the obstacles will be greater.

“In the coming time, processing and manufacturing industries such as textiles, footwear, electronics, machinery and equipment from Vietnam with large export turnover to the US need to pay close attention to trade defense measures. The reason is that although the export turnover is large, the participation rate of Vietnam in the value chain is still low, input materials must be imported in large quantities, so businesses as well as management agencies need to have careful preparation,” Dr. Le Huy Khoi, Deputy Director of the Institute for Strategy and Policy Research on Industry and Trade (Ministry of Industry and Trade) recommended.

Source: https://baodautu.vn/ky-luc-moi-cua-thuong-mai-viet-nam-d237529.html