Vietnam, the world's major manufacturing center

From a trade deficit country, Vietnam has gradually transformed into a trade surplus country. By 2023, Vietnam recorded its 8th consecutive year of trade surplus with a value of nearly 30 billion USD, becoming a major commodity production center of the world.

Vietnam has become a major manufacturing center of the world.

Sharing at the “Cross-border E-commerce Forum”, organized by Amazon Global Selling and the Vietnam E-commerce Association (VECOM), Mr. Tran Thanh Hai, Deputy Director of the Import-Export Department (Ministry of Industry and Trade) said: “Vietnam's import-export activities in the past 15 years have grown strongly in quantity and quality”.

As evidence, Mr. Hai said: “Our country's export ranking has increased by 23 places, from 50th in 2007 to 27th in 2022. Import and export have grown strongly, which is an important factor in maintaining stable economic development in recent times. At the same time, import and export activities have exploited their full potential and advantages, forming a new momentum, making Vietnam a center of world goods production.”

From a trade deficit country, Vietnam has gradually transformed into a trade surplus country. By 2023, Vietnam recorded its 8th consecutive year of trade surplus with a value of nearly 30 billion USD.

2022 is considered a record year for import and export, exceeding 730 billion USD, of which exports exceeded 371 billion USD for the first time. In 2023, affected by the global economic and trade downturn, import and export reached 681.1 billion USD, of which exports reached 354.7 billion USD, imports reached 326.4 billion USD, the trade balance of goods had a surplus of 28.3 billion USD.

The structure of imported goods continues to be maintained stable, imports mainly serve production and export. The import value of goods needed to serve domestic production and consumption reached 288.5 billion USD, accounting for about 88.4% of the total import turnover of the country.

In the first 6 months of 2024, trade in goods gradually recovered, bringing the total import-export turnover to 369.7 billion USD, of which exports increased by 14.2%, with 189.5 billion USD, imports were 180.2 billion USD, up 18.1%, the trade balance of goods had a surplus of 9.3 billion USD.

Vietnam's import and export in 6 months of 2024 (Source: Import and Export Department, Ministry of Industry and Trade).

Import and export growth is closely linked to and is an inevitable consequence of the process of opening up and international economic integration, thereby contributing to promoting economic restructuring towards modernization, industrialization and sustainability.

Structure of import-export goods in the first 6 months of 2024.

To date, Vietnam has signed and basically completed negotiations on 17 Free Trade Agreements (FTAs) with over 60 countries and territories, and is currently preparing to initiate negotiations on 3 FTAs ​​and economic frameworks (the Indo-Pacific Economic Framework (IPEF).

Total export turnover to partner countries participating in FTAs ​​accounts for about 65% of Vietnam's total export turnover.

Of which, the total export turnover enjoying preferential import tax in 2023 will reach over 86 billion USD, an increase of 9.2% compared to 2022, not including export turnover to partner markets participating in FTAs ​​that have eliminated tariffs to 0%.

Identifying the world context affecting global trade, Mr. Tran Thanh Hai said: "Recession and inflation slow growth, the US-China trade war and the epidemic make countries realize that they cannot be too dependent on a fixed country, thus leading to a wave of factory relocation out of China."

Along with that, protectionism tends to increase, countries use many new barriers to prevent goods imported from other countries, countries have higher requirements on the production process of goods to cut emissions to combat climate change.

These requirements force Vietnamese suppliers to quickly adapt through investment in green production, moving towards emission neutrality.

“Vietnam's import-export strategy until 2030 has clearly recognized the problem of sustainable export development, to achieve average export growth of 6-7% and import growth of 5-6% in the period 2021-2023,” said Mr. Hai.

Accordingly, focus resources on investing in production of high value-added products, shifting the structure of goods as well as exploiting potential markets, effectively exploiting FTAs, developing sustainable trade, protecting the environment, and harmonizing the trade balance.

Source: https://baodautu.vn/viet-nam-trung-tam-san-xuat-hang-hoa-lon-cua-the-gioi-d218777.html