Vietnam's export recovery gains momentum
Vietnam’s exports have been on a path of recovery since the beginning of the year.
According to a report from the General Statistics Office (GSO), the country’s total export turnover of goods in the first two months of 2024 reached US$59.34 billion, a 19.2% increase compared to the same period last year.
The domestic economic sector accounted for US$16.14 billion, a 33.3% increase, 27.2% of the total export turnover. The FDI sector, including crude oil, reached US$43.2 billion, a 14.7% increase, 72.8% of the total export turnover.
Wood and wood products, in particular, have shown high export results in the first two months of this year.
Tran Xuan Thien, CEO of Thien Linh Plywood Company, said that the global economy showed signs of slowing down in 2023, resulting in fewer orders. He said, however, that demand seemed to have picked up since the beginning of the year. He said his company has secured orders until mid-2024.
Other exports including textiles, leather and footwear, iron and steel, electronics, aquatic products, fruits and vegetables, rice and coffee have all experienced significant growth compared to last year.
Deputy Minister of Agriculture and Rural Development (MARD) Phung Duc Tien said in February, the total export of agricultural, forestry and aquatic products reached US$4.48 billion, a 21.8% increase compared to the same period last year.
In the first two months of the year, the total export turnover of these products is estimated at US$9.84 billion, a 50.3% increase, with a trade surplus of US$2.68 billion. The sector aims to achieve an export target of US$54-55 billion in 2024. Tien stressed the importance of the diversity of export markets and improved quality of Vietnamese agricultural products, as recognised by markets such as the US, the EU and Japan.
He said the ministry believed Vietnam has ample opportunities to boost chicken meat exports to Halal markets. Once negotiations are completed, the Dehus Group can export up to 1,000 tonnes per month to Halal markets, with a total population of up to 2.2 billion people and significant potential.
Le Tien Truong, chairman of the Vietnam National Textile and Garment Group (Vinatex), noted that Vietnam's economic position is expected to significantly improve in 2024 as the global economy continues to recover.
"Many competing economies are facing many issues with labour and armed conflicts domestically, while Vietnam remains a safe destination, which will help in securing additional orders," he said.
However, he said the financial health of Vietnamese businesses had been weakened after going through a prolonged difficult period, as well as new challenges, such as a 6% increase in minimum wage from July 1, 2024, and the possibility of further increases in electricity prices after a 7% rise in 2023.
