Surfing the Vietnam-UK Free Trade Agreement (UKVFTA), Vietnamese goods are rushing into the UK; a Vietnamese spice is impressively exported to the Taiwanese market (China)... are the outstanding export news from August 5-11.
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| China was Vietnam's largest chili export market in the first 7 months of this year. (Source: Dan Viet) |
Chili exports to Taiwan market increase record, more than 600%
According to preliminary statistics from the Vietnam Pepper Association (VPA), in July 2024, the country exported 697 tons of chili, with a turnover of 1.6 million USD. Compared to the previous month, the export volume decreased by 14.5%.
In the past 7 months, the total chili export volume of the whole country reached 8,023 tons, an increase of 3.5% over the same period in 2023. In particular, the Asian market continued to play a leading role with 7,727 tons, an increase of 2.1% over the same period in 2023; the American market reached 143 tons, an increase of 123.4%; the European market reached 80 tons and Africa was 73 tons.
China was Vietnam's largest chili export market in the first 7 months of this year, reaching 6,834 tons, accounting for 85.2% of total export output. Compared to the same period last year, the export output in the past 7 months to China decreased by 1.9%.
Ranked second is the Lao market with 810 tons, accounting for 10%; up 44.6% over the same period. The US market ranked third, reaching 134 tons, up 157.7% over the same period last year.
Also in the past 7 months, there has been strong growth in some of Vietnam's chili export markets. Specifically, Taiwan (China) increased the most, with 640% (from 5 tons in the same period in 2023 to 37 tons); Senegal increased by 300%, with an output of 8 tons...
Surfing UKVFTA, Vietnamese goods rush into the UK
According to preliminary statistics from the General Department of Customs, in the first 6 months of 2024, the total trade turnover between Vietnam and the UK reached more than 3.9 billion USD, an increase of 21.7% over the same period in 2023. Of which, Vietnam had a trade surplus of more than 3.2 billion USD, an increase of 28.5% over the same period in 2023...
Vietnam's export turnover to the UK market in June 2024 reached 573.3 million USD, up 10.7% over the previous month. In the first 6 months of 2024, it reached 3.5 billion USD, up 24.6% over the same period last year.
The leading export item in the first 6 months of 2024 was the group of phones of all kinds and components, reaching more than 638.4 million USD, accounting for 17.8% of the export proportion. Next was the group of other machinery, equipment, tools and spare parts, reaching 606.9 million USD, up 44.7%, accounting for 16.9% of the export proportion. Next was footwear of all kinds reaching 479.8 million USD, up 27.7%, accounting for 13.4% of the export proportion.
In the first 6 months of 2024, some items had a significant increase in export turnover compared to the previous year: Computers, electronic products and components increased by 142.6%; rubber increased by 110%; electric wires and cables increased by 67.9%; machinery, equipment and tools increased by 44.8%; vegetables and fruits increased by 55.5%; textile, garment, leather and footwear materials increased by 30.7%; all kinds of footwear increased by 27.8%...
The export items with the largest proportion of turnover are: Phones of all kinds and components; machinery, equipment, spare parts; footwear of all kinds; textiles and garments; computers, electronic products and components...
According to the assessment of the Vietnam Trade Office in the UK and Northern Ireland, the UK market has many opportunities for Vietnam's exports, first of all, the preferential tariff basis under the Vietnam - UK Free Trade Agreement (UKVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Vietnamese enterprises will have the opportunity to increase exports of rubber, electric wires and cables; telephones and components of all kinds, coffee, confectionery, cereals, ceramics, vegetables, food, leather shoes, garments, seafood, wooden furniture, rice, etc. to the UK. Recently, the UK has tended to increase its demand for importing these items.
Furthermore, the UK market is quite large with about 68 million people, diverse needs with an Asian community of more than 5.5 million people, which is also a favorable condition for Vietnamese goods, including wooden furniture, to increase exports to this market.
To be able to take advantage of the opportunities brought about by the UKVFTA more effectively, the Vietnam Trade Office in the UK and Northern Ireland recommends that Vietnamese enterprises need to ensure that their products and production processes meet UK standards.
Demand increases from major markets, rice exports forecast to exceed 5 billion USD
According to a report by the Ministry of Agriculture and Rural Development and the General Department of Customs, in the first 7 months of 2024, Vietnam exported 5.18 million tons of rice with a turnover of 3.27 billion USD, an increase of 5.8% in volume and 25.1% in value over the same period in 2023.
Over the past year, under the impact of India's rice export ban, rice export prices have established a new price level in a direction that is beneficial to major rice exporting countries, including Vietnam. In 2023, Vietnam's rice exports will reach nearly 4.7 billion USD, with an average price of 575 USD/ton, an increase of 18.26% compared to 2022.
Entering 2024, rice export prices will remain high. The average export price of Vietnamese rice in the past 7 months reached 632.2 USD/ton, up 18.2% over the same period.
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| The increasing trend of rice imports from many large markets, specializing in importing Vietnamese rice, is an important boost to rice export activities on the way to the "finish line" in 2024. (Source: Investment Newspaper) |
As of July 15, 2024, the country's rice harvest output reached about 25 million tons, up 2% over the same period. The Ministry of Agriculture and Rural Development calculated that in 2024, rice production is estimated to reach about 43.4 million tons of paddy, ensuring national food security and possibly saving about 7.6 million tons of rice for export.
Mr. Nguyen Ngoc Nam, Chairman of the Vietnam Food Association (VFA), commented: “The demand for rice from countries around the world, especially Vietnam’s traditional customers, remains high and may increase. This is an opportunity for Vietnam to promote rice exports in the remaining months of 2024.”
Recently, the Indonesian National Logistics Agency announced the results of the July bidding for 320,000 tons of 5% broken rice. Vietnamese enterprises won 7 out of 12 bidding packages, with a total of 185,000 tons of rice. VinaFood 1 was the unit that won the most bids, with 104,000 tons.
In addition, there are 3 units that won each bid of 27,000 tons, including: Southern Food Corporation (Vinafood 2), Gia International Joint Stock Company, An Vi Import-Export Joint Stock Company. These are units that use rice of Vietnamese origin. In addition, Mekong Food Company of Vietnam won the bid of 27,000 tons, but used rice from Myanmar.
Information from businesses also shows that rice exports will improve, because the demand for rice imports increases from Vietnam's traditional customers such as the Philippines, Indonesia, China, Ghana, Malaysia, Singapore, etc.
Revenue of 192 billion USD from processed and manufactured industrial goods
In the first 7 months of 2024, Vietnam earned 192 billion USD from exporting processed and manufactured industrial products, accounting for 84.6% of total export turnover and increasing by 15.4% over the same period in 2023. The above export figures were just announced by the Ministry of Industry and Trade on August 5.
Specifically, the export turnover of processed and manufactured industrial products in 7 months is estimated at nearly 192 billion USD, accounting for 84.6% of total export turnover and increasing by 15.4% over the same period in 2023.
Many product groups achieved high growth rates, including key export items such as: Cameras, camcorders and components increased by 51.5%; computers, electronic products and components increased by 30%; plastic products increased by 29.9%; wood and wood products increased by 23.3%; iron and steel of all kinds increased by 9.8%; machinery, equipment, tools and other spare parts increased by 19%; textiles and garments increased by 4.3%; footwear of all kinds increased by 10.1%; phones of all kinds and components increased by 12.3%...
In addition to the group of processed and manufactured industrial products, the agricultural product group has continued to maintain its growth momentum from 2023 to present, with the total export turnover of this group estimated at 21.4 billion USD, an increase of 19.6% over the same period in 2023, accounting for 9.4% of the country's total export turnover.
Due to the increase in export prices, most of the items in this group achieved high double-digit export turnover growth rates compared to the same period last year, such as: coffee increased by 30.9%; rice increased by 25.1%; tea of all kinds increased by 34.8%; vegetables and fruits increased by 24.3%; cashew nuts increased by 22.1%; pepper increased by 46.3%; cassava and cassava products increased by 12.5%.
Export turnover of mineral fuel group increased the lowest (0.6%), estimated at 2.35 billion USD.
According to the Ministry of Industry and Trade, goods exports continue to be a bright spot in the overall picture of the economy in the first 7 months of 2024.
With the gradual recovery of the world market and increased export orders, import and export activities in the first 7 months of 2024 flourished and achieved positive results.
In the first 7 months of 2024, the estimated export turnover of goods reached 226.98 billion USD, up 15.7% over the same period last year. Of which, the domestic economic sector reached 63.08 billion USD, up 21.1%, accounting for 27.8% of total export turnover; the foreign-invested sector (including crude oil) reached 163.9 billion USD, up 13.8%, accounting for 72.2%.
Forecasting future exports, the Ministry of Industry and Trade said: “Imports of raw materials for production have been boosted in recent months, indicating that export activities will increase in the coming time. Vietnam continues to benefit from signed FTAs to accelerate exports, and cyclically, demand for goods in many world markets increases at the end of the year.”
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