America is still an important "destination" for Vietnamese goods.

In recent months, exports to the US have declined in line with the general decline in global trade, but this market is still the most important destination for Vietnamese goods.

Mỹ vẫn là 'bến đỗ' quan trọng của hàng Việt

Vietnamese fruits are displayed for sale at a supermarket in the US. (Source: Saigon Investment)

The most important market

About 109 billion USD worth of manufactured goods from Vietnam in the fields of phones, computers, electronic components, textiles, handbags, seafood, etc. were exported by Vietnamese enterprises to the US in 2022.

In the first half of 2023, heavily affected by the economic downturn, Americans tightened spending, so Vietnam's export turnover of goods to the US could not maintain its "form", reaching only nearly 45 billion USD, while in the same period last year it reached 55.9 billion USD.

Although the volume of goods sold to the US has decreased the most among export markets, this decline is considered by experts to be not a cause for concern. Because this is a common situation, major US buyers have reduced orders from global suppliers, not just from Vietnam.

In the context of declining global trade and fewer orders, domestic enterprises are still preparing the best foundations to wait for the opportunity to accelerate exports as soon as there are more positive signs of economic growth and American corporations and enterprises increase their orders again.

Even small orders from many industries are still being diligently collected by businesses to bring goods from Vietnam to a market of more than 300 million people.

On July 12, a ship carrying 55,000 tons of Xuan Thanh branded cement left Cam Pha port (Quang Ninh) for Louisiana (USA). This is a shipment of low-alkali type I/II cement, manufactured according to US standards ASTM C-150, exported under a long-term contract with an international partner. The shipment is expected to arrive at New Orleans port at the end of August 2023.

The leader of Xuan Thanh Cement Joint Stock Company said that this is the second successful shipment to the US and in the future, this enterprise will increase production according to the commitment in the contract signed with the importer.

For the textile and garment industry, the US is also an important market, determining the growth of enterprises, because exports to this market always account for the largest proportion. In 2022, textile and garment exports to the US will reach nearly 18 billion USD. In the first half of this year, this figure reached about 7 billion USD.

Mr. Than Duc Viet, General Director of May 10 Company, said that investment activities and production redirection according to high demand from buyers in key markets such as the US, EU, etc. are being focused by May 10 to seize the opportunity to increase exports when demand recovers.

Establish and strengthen supply chains

The US is Vietnam's leading export market, while Vietnam has become a major trade partner of the US and an important link in the supply chain of many types of goods for the US market.

During her meeting with Prime Minister Pham Minh Chinh during her visit to Vietnam last week, US Treasury Secretary Janet Yelle affirmed: “The US wishes to promote economic and trade cooperation with Vietnam; plans to strengthen cooperation with Vietnam on the supply chain on the basis of comprehensive and trustworthy partnership; and supports Vietnam in improving its capacity to produce semiconductor chips and renewable energy.”

Prime Minister Pham Minh Chinh agreed with the US proposal and said that expanding the supply chain and producing chips and semiconductors is also a priority in Vietnam's development strategy.

Recently, there has been a clear trend when large US corporations such as Boeing, Intel, Walmart... research and invest in expanding the global supply chain in Vietnam, including the supporting industry sector to ensure long-term stability of the entire chain.

Working with the Minister of Industry and Trade recently, Senior Director, Global Government Relations of Walmart Group, Ms. Sarah Thorn emphasized: "Vietnam is among the top 5 countries exporting the most goods to Walmart's system with key products including textiles, household appliances, electronics and processed foods."

Opportunities in the US are huge, but Vietnamese businesses still face many barriers. The Ministry of Industry and Trade noted that with the current export growth rate, the US will remain an important export market for Vietnam in the coming time, but businesses will face difficulties and challenges due to the US issuing many policies to reduce the trade deficit and encourage domestic production. These policies may affect Vietnam's exports.

In addition, the US has increased the frequency of trade defense investigations against Vietnamese goods and has not recognized Vietnam as a market economy, causing Vietnamese goods to suffer great disadvantages in trade defense investigations.

Export commodity groups worth over 1 billion USD to the US in the first 6 months of 2023 include: machinery, equipment, spare parts; computers, electronic products and components; textiles; phones of all kinds and components; footwear of all kinds; wood and wood products; means of transport and spare parts.

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