Potential export industries

Citing data from the General Department of Customs, the Department of European and American Markets (Ministry of Industry and Trade) said that after experiencing a serious decline in 2023, in the first 3 months of 2024, Vietnam's trade with most European and American markets has had a positive recovery.

Specifically, the total import-export turnover with the Europe - America region in the first quarter of 2024 reached 55.6 billion USD, an increase of 20.4%. This figure contributed 47.1% to the overall import-export trade growth of Vietnam compared to the world (reaching 117.96 billion USD in the first 3 months of the year).

Of which, Vietnam's exports to this market reached 44.9 billion USD, up 21.6% over the same period, imports reached 10.7 billion USD, up 15.7%. Vietnam's trade surplus with the Europe - America region reached 34.2 billion USD, up 23.5% over the same period.

In the European region alone, Vietnam's total trade turnover with this region reached 19.5 billion USD, up 18.5%. Of which, Vietnam's exports reached 14.7 billion USD, up 19.2%. Vietnam's imports reached 4.8 billion USD, up 16.3%. Vietnam's trade surplus with the European region reached 9.9 billion USD, up 20.7%.

In the Americas region, total trade turnover in the first 3 months of 2024 reached 36.1 billion USD, up 21.5% compared to the first 3 months of 2023, nearly twice as high as in Europe. Of which, exports reached 30.2 billion USD, up 22.8%. Imports reached 5.9 billion USD, up 15.2%. Vietnam's trade surplus with the Americas region reached 24.38 billion USD, up 25.3%.

Wood and wood products are the top potential items for domestic export enterprises to the European and American markets. Illustrative photo

Mr. Ta Hoang Linh - Director of the European - American Market Department said that the above preliminary statistics do not include small markets in Europe and America. Therefore, Vietnam's trade with this region has been gradually recovering. "Enterprises are restoring import-export and logistics activities after a period of adapting to the disruption of the general supply chain of the world market" - Director Ta Hoang Linh informed and said that in the first quarter of 2024, exports of some groups and industries of Vietnam to this market had good growth such as: Wood and wood products; vegetables; agricultural products...

Specifically analyzing the product groups with room for development in the European and American markets, the leader of the European - American Market Department said that wood and wood products are the leading potential products for domestic export enterprises. In 2023, along with the general decline of the product lines, wood and wood product exports to the European and American markets witnessed a decrease in turnover of -16.5%, but still reached an export value of nearly 8.2 billion USD. In the first 3 months of 2024, wood exports grew dramatically again, reaching 2.16 billion USD, an increase of 35.6% over the same period in 2023.

Some of Vietnam's leading wood export markets in 2023 are: the United States (7.3 billion USD), Canada (205.5 million USD), the United Kingdom (195 million USD), France (405.5 million USD), Germany (72 million USD), the Netherlands (67.5 million USD), Belgium (45.8 million USD), Mexico (37.5 million USD), Spain (36.3 million USD), Denmark (29.4 million USD), Italy (20.2 million USD), Sweden (19.8 million USD), ...

In addition to the wood and wood products industry, agricultural products (such as vegetables, coffee, rice, cashew nuts, etc.) also have great potential to increase turnover in this market. According to the assessment of the European - American Market Department, the agricultural sector has made impressive contributions to export activities in 2023, especially agricultural product groups such as rice, vegetables, cashew nuts, etc.

In 2023, Vietnam's exports of key agricultural products (7 items including: Tea, rice, pepper, cashew nuts, vegetables, rubber, and coffee) to the European and American markets will reach approximately 5.3 billion USD, a slight increase of 0.65% compared to 2022.

Notably, Vietnam's fruit and vegetable exports to the European and American markets have grown continuously over the past few years. In 2023, the export value to this market reached 615.4 million USD, an increase of 11.2%. In the first 3 months of 2024, the export value of this industry also increased by 25.7%, reaching 159 million USD.

In addition, Vietnamese rice products are also positively received in this market. In 2023, the value of rice exports to Europe and America reached 64 million USD, an increase of 50%. In the first 2 months of 2024, the export value increased by 15.8%, reaching 16.0 million USD. On the other hand, Vietnamese coffee and cashew nuts have also continuously maintained their position as major exporters to the European and American markets.

Proactively learn and take advantage of FTAs ​​for sustainable exports

Making forecasts about import and export activities between Vietnam and the European and American markets, the leader of the European and American Market Department said that in the coming time, Vietnam's export activities to this market will have many opportunities when Vietnam's Free Trade Agreements (FTAs) with European and American market partners continue to have positive impacts, maintaining Vietnam's advantages in trade and investment activities.

Not to mention, the fact that developed industrial countries continue to promote the strategy of diversifying supply sources, diversifying supply chains, and diversifying investments has helped Vietnam become an important production and export center in the global value chain. In addition, countries in Europe and America are promoting the development of green economy, digital transformation, and circular economy, opening up many new cooperation opportunities as well as providing a lot of credit and technology support to help Vietnam.

To exploit the European and American markets well, domestic enterprises need to proactively learn about and make the most of incentives from signed FTAs. Illustrative photo

However, there are many opportunities, but currently, the global economy is entering a new period, full of risks, challenges and unpredictability. Therefore, the leader of the European - American Market Department recommends that the domestic export business community proactively improve products, packaging, labels, quality and production processes to meet export standards; proactively participate in programs organized by the Ministry of Industry and Trade and trade promotion agencies to find partners to export goods.

In particular, focus on enhancing online brand recognition through websites and social networks with full information, demonstrating capacity to expand brand promotion to foreign partners and build trust. At the same time, proactively cultivate knowledge and experience in import-export activities, international trade, international payments and find experienced people to support, participate in training courses organized by the Ministry of Industry and Trade and trade promotion agencies and organizations.

To promote export turnover growth and sustainable development in the European and American markets, the leader of the European - American Market Department also recommended that export enterprises must proactively learn about the free trade agreements that Vietnam has signed and proactively take advantage of incentives from the agreements for their product lines and export markets.

“ For the European - American market, there will be a number of labeling standards to be circulated in this market, such as the CE mark for products in the EU market, the UKCA mark for products in the UK market, and the FDA license for food and pharmaceutical products in the US market. Enterprises need to proactively research and register licenses and trademarks for their products suitable for each market” - The European - American Market Department especially noted and committed to always accompany export enterprises; coordinate and closely follow the market situation, promptly inform and do a good job of supporting local enterprises in penetrating and developing the market and protecting legitimate rights, mobilizing and encouraging foreign enterprises to seek sources of goods or expand investment in Vietnam.