Vietnam Main Export Industries With Reviews Of Products Export Value
With its rising costs, China is no longer the go-to destination for many businesses. Whereas, Vietnam has arisen as a serious competitor of China. Recent trends show that the number of orders shifting from China to Vietnam has seen a significant increase.
1/ Vietnam Export Import and foreign investment context
For example, China’s Pearl River Delta, long known as one of the key factory centers for the world’s manufacturers (particularly those from Hong Kong) has now become too costly for many companies to stay in the region.
In past few years, a growing number of businesses have relocated their operations from China to Vietnam. This is an attempt to escape from rising costs and increasingly complex regulatory environment.
Given the recent trade war between China and the US, alongside Vietnam’s recent CPTPP ratification, and the signing of the EU-Vietnam FTA, the country is steadily becoming more open to international trade and investment.
Located in a strategic position for foreign companies with operations throughout Southeast Asia, Vietnam is an ideal export hub to reach other ASEAN markets. So, in this article, we will talk about Vietnam main export industries
2/ Manufacturing sectors and manufacturing in Vietnam
Compared with other developing markets in the region, Vietnam is emerging as the clear leader in low-cost manufacturing and sourcing, with the country’s manufacturing sector accounting for 25 percent of Vietnam’s total GDP in 2015.
Currently, labor costs in Vietnam are 50 percent of those in China and around 40 percent of those reported in Thailand and the Philippines. With the country’s workforce growing annually, Vietnamese workers are inexpensive, young, and, increasingly, highly skilled.
Another driving force behind Vietnam’s growing popularity is the country’s collection of free trade agreements (FTAs)—most notably, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and EU-Vietnam FTA. There are many investors who want to invest in Vietnam main export industries. Moreover, they want to produce benefitable products from Vietnam.
3/ Export goods of Vietnam made recovery in first quarter 2021
The year 2021 is the first year of the Strategy for socio-economic development for 10 years 2021-2030 and the Five years Plan on socio-economic development 2021-2025, as well as the year of grasping, concretizing and organizing the implementation of major guidelines and directions of the Party as the spirit of the Resolution of the XIII Party Congress. With the prospect of global trade getting better when the Covid-19 pandemic is gradually controlled. The framework of free trade agreements having been and will be signed, so export suppliers and traders will have many chances in 2021.
Following the achievements in 2020, the first quarter of 2021 recorded a strong recovery of import and export activities. Total import-export turnover in this quarter was estimated at 152.65 billion USD. Turnover rose by 24.1% over the same period last year.
Specifically, export turnover reached 77.34 billion USD, increased by 22%. Whereas, import reached 75.31 billion USD, increased by 26.3%. The trade balance in the first quarter of 2021 had a trade surplus of 2.03 billion USD. This is a step creating momentum, creating a breakthrough for import and export activities in 2021.
Domestic production has gradually recovered steadily. Gross domestic product (GDP) in the first quarter of 2021 was estimated to increase by 4.48% over the same period last year. It is higher than the growth rate of 3.68% in the first quarter of 2020. Export turnover of many commodity groups has achieved a high rate of increase.
4/ Main products export value
In the first quarter, there were 11 products with export turnover of over 1 billion USD. It was contributing 76.6% to the total export turnover. Many items with high export value achieved double-digit rate of increase over the same period last year. According to General Statistics Office, the proportion of export products and industries as below:
– Machinery, instrument and accessory increased by 77.2%; iron,
– Steel grew by 65.2%;
– Wood and wooden products rose by 41.5%;
– Electronic goods, computers and their parts increased by 31.3%;
– Textile fibres and plastic products together rose by 31%;
– Means of transport and components rose by 20%;
– Footwear increased by 13.5%.
Structure of Vietnam main export industries continued to improve in a positive direction. Specifically, it reduced the content of raw exports, exports of agricultural, forestry and aquatic products. Simultaneously, it was increasing exports of processed products, industrial products.
In the first quarter of 2021, the proportion of industrial goods accounted for 90.9% of the total export turnover. Heavy industry products and minerals were estimated at 43.2 billion USD. This figure went up 25.9% over the same period last year. Whereas, light industry and handicraft products jumped up by 20.6%.
Read more:
>> Fish Meal Supplier | Where To Buy Cheap Fishmeal Vietnam High Protein