Strong export figures pivotal to overall recovery

The latest data from the Ministry of Industry and Trade (MoIT) shows that in the first eight months of this year, export turnover in the manufacturing and processing sectors reached $225 billion, accounting for 85 per cent of the country’s total export value. This represents a 15.8 per cent increase over the same period last year.

Several key product categories experienced significant on-year growth, including cameras and components 40.4 per cent; computers, electronics, and components 28 per cent; plastic products 31 per cent; wood and wooden items 21.8 per cent; machinery 22.5 per cent; textiles and garments 7.3 per cent; footwear 12.7 per cent; and mobile phones and components 11.5 per cent.

“Vietnam’s strong goods exports, especially in manufacturing and processing, have been pivotal to its economic recovery this year,” said an expert from MoIT’s Foreign Trade Agency. “A sustained increase in foreign direct investment (FDI) in these sectors has significantly contributed to the export turnover growth of the whole economy, particularly in manufacturing and processing.”

According to the Ministry of Planning and Investment, the manufacturing and processing industry maintained its top spot for FDI attraction in the first eight months of this year. Total newly registered, newly added capital, capital contributions, and stake acquisitions in this sector hit $14.2 billion, up 7.4 per cent on-year, accounting for 70.5 per cent of the country’s total FDI.

“Trade recovery and positive FDI are crucial drivers for growth,” stated the Asian Development Bank (ADB) in its Asian Development Outlook report, released over a week ago. The ADB assessed that Vietnam remains an attractive destination for manufacturing and processing investments, with numerous investors planning significant projects, thus supporting the nation’s export growth.

Recent investments underscore this trend. At the end of September, Bac Ninh province authorities granted investment policy decisions, registration certificates, and MoUs to 18 projects, including those by tech giants Samsung, Taiwan-based Foxconn, and Amkor Vietnam, with pledged capital exceeding $5.5 billion (see Page 6).

Figures from the General Department of Vietnam Customs showed that the country’s export and import turnover in the first eight months of 2024 hit $265.44 billion and $246.87 billion, respectively, representing strong rebounds of 16 and 18 per cent over the same period last year.

The ADB expects Vietnam’s import and export growth to exceed 10 per cent in 2024, with further growth next year as external demand revives. Robust trade activity is projected to help maintain a current account surplus of around 2 per cent of GDP this year, although this is expected to narrow to 1.5 per cent of GDP in 2025 as imports of production inputs rise alongside manufacturing recovery.

Vietnam’s export-oriented industries remain key drivers of growth, with the recovery in new orders boosting manufacturing since early this year. The manufacturing Purchasing Managers’ Index stood at 52.4 in August, indicating expansion. Electronics exports, in particular, have played a significant role in the country’s industrial production growth.

The share of mobile phones, computers, and electronic products in total export turnover has been steadily increasing. In 2011, these items accounted for just 12 per cent of the total, rising to 24 per cent by 2014 and 33 per cent by 2023. Over this period, the average growth rate for electronics exports was 26.7 per cent per year.

In the first eight months of 2024, exports of computers, electronic products, and components hit $89 billion, accounting for 33.6 per cent of total exports, marking a 21 per cent on-year increase. This growth not only reflects increased production capacity, but also highlights improved product quality to meet rising international demand.

The success in exports has led to imports of production inputs worth $78.2 billion, accounting for 31.8 per cent of total imports, a 26 per cent rise from the same period last year.

Vietnam-based export companies are gearing up their collaborative efforts and securing funding to meet stringent EU sustainability regulations.

Vietnamese Minister of Industry and Trade Nguyen Hong Dien has proposed that China expand its market access for Vietnamese agricultural products, including citrus fruits, custard apples, and rose apples.

GUANGZHOU, China , Oct. 11, 2024 /PRNewswire/ -- During a trade promotion event at the Guangzhou International Fruit & Vegetable Expo, Betrimex (Ben Tre Import Export Joint Stock Company) signed a Memorandum of Understanding (MoU) with the Jiangnan Market Imported Fruit Chamber of Commerce to establish a strategic partnership for exporting fresh coconuts from Vietnam to the Chinese market. This milestone marks a significant opportunity for Vietnamese fresh coconuts to enter the Chinese market.