Vietnam's Trade Surplus with EU and US Markets Reaches $125 Billion
- 194
- Business
- 21:29 28/12/2023
DNHN - The trade of goods between Vietnam and the markets in Europe and America had a notable downturn in 2023. It is anticipated that the total value of products imported and exported will be $208 billion, a 9.5% decline from 2022.
Research released by the Ministry of Industry and Trade projects that exports to the US and EU markets in 2023 will only amount to approximately $166 billion, a 9.6% decline, as a result of numerous adverse effects arising from the global economy. In the meantime, imports are expected to be around $41 billion, which is a 9.1% decrease from 2022.
Vietnam is predicted to have a $125 billion trade surplus with the US and EU markets, with a surplus of roughly $33 billion with European nations and $92 billion with American nations, notwithstanding these losses.
Director of the European-American Market Department, Mr Ta Hoang Linh, gave the following explanation for the drop in trade with these two important markets: "With a highly open economy, Vietnam's import and export activities are directly affected by the global economic downturn in the first half of 2023 and the slow and uneven recovery of economies worldwide in the second half of 2023."
The majority of the world's most powerful economies—the US at 2.1%, Canada at 1.3%, the EU at 0.7%, the UK at 0.5%, Russia at 2.2%, and so on—are expected to see GDP growth rates below 2.5%, according to the International Monetary Fund (IMF), with the notable exceptions of Mexico (expected to grow by 3.2%) and Brazil (projected to grow by 3.1%).
In comparison with the same period the previous year, there is less demand for imported goods in Vietnam's major export markets. Based on data from these nations, the EU decreased its imports from non-EU markets by almost 16% in the first ten months of 2023, while the US decreased its imports from the rest of the world by 6%. Even if inflation has decreased, it is still quite high. This has significantly changed consumer behaviour and habits in European and American countries, along with geopolitical difficulties, making it harder to maintain export markets.
![Illustration Illustration](https://media.doanhnghiephoinhap.vn/uploads/2023/12/28/xuat-nhap-khau-la-gi-16444772038188729387-1703661491-1703772799.jpg)
The export turnover with several important markets has dropped precipitously for the first time in many years of consistently high growth. Interestingly, exports to the US are predicted to come in at $96.9 billion, down 12.4% from 2022. Estimated exports to the EU will be $43.7 billion, a 6.7% decrease. The anticipated amount for the Americas' participating countries in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is $13.1 billion, indicating a 10.6% decrease. Export growth was 3.1%, 12.7%, and 10%, respectively, for the UK, nations in the Eurasian Economic Union (EAEU), countries in the Southern Common Market (Mercosur), and a few smaller markets.
The main exports from Vietnam to these markets, including wood and wood products, textiles and garments, leather, footwear, and handbags, phones, computers, and components; machinery, equipment, spare parts, and accessories; and seafood, have all seen average decreases of more than 10% from 2022.
Nonetheless, exports of a few other goods have increased, such as various kinds of iron and steel (up 23.5%) and cameras, camcorders, and their components (up 27%). Notably, a few agricultural items have also grown: cashew nuts have increased by 10.2%, fruits and vegetables have increased by 10.2%, and rice has increased by 53.3%.
Many organisations forecast that the global European and American economies will develop at a slower rate in 2024 than they did in 2023.
In particular, the IMF predicts that the rate of growth in the global GDP in 2024 will be 2.9%, down from 3% in 2023. Compared to 2023, the GDP growth rates of the main American and European economies are predicted to either stagnate or expand very little in 2024. For example, growth in the US is expected to be 1.5%, but growth in the Eurozone is expected to be 1.2%, compared to 0.7% in 2023, and growth in the UK is expected to be 0.6%, compared to 0.5% in 2023.
Furthermore, there are worries about protracted geopolitical conflicts and instability that can disperse to other areas.
Even while big export markets in the United States and Europe are probably going to grow more slowly in the upcoming year, they are still very important markets for Vietnam's exports.
Positively, Vietnam is one of the top 20 nations in the world in terms of trade volume and is essential to the global supply chain. Vietnam will therefore continue to benefit from and be able to preserve its advantages in trade and investment activities in 2024 thanks to the successful implementation of free trade agreements (FTAs) with market partners in Europe and America, including the EVFTA, CPTPP, and UKFTA, even in the face of a slowdown in trade.
Vietnam has made the most use of the CPTPP to speed up its exports of goods to Canada, according to Ms Tran Thu Quynh, Trade Counsellor at the Vietnam Trade Office in Canada. It is projected that by 2023, exports to Canada will amount to more than $5.7 billion.
Mr Ta Hoang Linh stated that the European-American Market Department (Ministry of Industry and Trade) will keep a close eye on the market, promptly gather information on regional and global economic, political, and policy developments that may affect trade with Vietnam, and issue timely warnings to the business community and advise the government on appropriate policy responses due to the inherent risks associated with trade.
PV
Related news
- Businesses need to increase adaptability to join the global supply chain
- Agricultural exports are forecast to reach nearly 60 billion USD in 2024
- General Secretary Nguyen Phu Trong: An outstanding politician, a great theorist
- Why is bank security very important?
- Export businesses face difficulties as sea freight rates rise
- Banks and challenges in funding green projects
- Strategies for innovation to adapt and seize opportunities by enterprises
- The Ho Chi Minh City Friendship Dialogue and the Ho Chi Minh City Economic Forum will take place in September 2024
- Why is it necessary to implement the direct electricity purchase mechanism soon?
- How are bank bond interest rates attractive to investors?
- Bamboo Airways aims to break even and become profitable by 2025
- Overcoming rising input costs and supply challenges in business
- The strong growth of air travel demand in Vietnam
- New proposal on petroleum business: Enterprises can have the freedom to set retail prices
- Electric vehicle market share in Vietnam: Development trends and challenges
- Farm School - What legal framework is needed for this new model?
- Digital transformation in the banking sector: The future direction of financial services
- EuroCham: European enterprises confident in Vietnam's long-term economic growth
- The journey from Nghe An fields to the TH True Milk brand
- Why support taxi businesses transitioning to electric vehicles?
Đọc thêm Business
Agricultural exports are forecast to reach nearly 60 billion USD in 2024
Vietnam's agricultural sector is a bright spot with increasing export potential. It is forecast that in 2024, Vietnam could reach an export level of nearly 60 billion USD, opening up great opportunities for sustainable development in this sector.
General Secretary Nguyen Phu Trong: An outstanding politician, a great theorist
General Secretary Nguyen Phu Trong's passing is a great loss for our Party and the people of Vietnam, leaving infinite regret among the people of the entire country and internationally.
Export businesses face difficulties as sea freight rates rise
Logistics costs have now increased by about 130% compared to the end of 2023. This reality has been pushing domestic export businesses into a state of freezing many export orders.
The Ho Chi Minh City Friendship Dialogue and the Ho Chi Minh City Economic Forum will take place in September 2024
The 2nd Ho Chi Minh City Friendship Dialogue (Ho Chi Minh City Friendship Dialogue – FD) in 2024, themed "Industrial transformation: Experiences and priorities in development cooperation", will take place from September 23-24, 2024.
Why is it necessary to implement the direct electricity purchase mechanism soon?
Implementing the direct electricity purchase mechanism brings many economic and environmental benefits and creates condition for the sustainable development of the electricity sector. Thus, this mechanism has become increasingly necessary and urgent.
How are bank bond interest rates attractive to investors?
Bank bonds are attracting investor interest due to their attractive interest rates and high level of security. This is a popular choice among investors in stable and safe financial products today.
Overcoming rising input costs and supply challenges in business
Currently, businesses are facing significant challenges as input costs rise and supply becomes difficult. The shortage of supply can impact business operations, profits, and the competitiveness of businesses.
The strong growth of air travel demand in Vietnam
Vietnam is becoming a top tourist destination in Southeast Asia, with the strong growth in air travel demand creating both opportunities and challenges for the industry.
Tourism and resort real estate begins to show more positive signals
Tourism and resort real estate, although affected by the pandemic, are showing many signs of recovery and many new positive opportunities in the coming period.
Electric vehicle market share in Vietnam: Development trends and challenges
The global automotive industry is transitioning from internal combustion engines to electric vehicles, aiming to reduce pollution and protect the environment. In Vietnam, the electric vehicle is growing rapidly, but it also faces many challenges.