According to the General Statistics Office of Vietnam, exports in the first five months increased 15.8% to US$93.09 billion, with the domestic sector making up US$26.43 billion (up 17.8%), and the foreign direct investment (FDI) sector (including crude oil) accounting for US$66.66 billion (up 15%). The country recorded a US$3.39 billion trade surplus to the end of May.
Despite these positive results, there are still some challenges to be surmounted in the coming time, such as unstable exports, dependence on key markets, difficulties in overcoming tax and technical barriers, food safety, tracing product origins, and connectivity between production and market.
Particularly, the country’s exports greatly depend on the FDI sector, while the sector’s production and exports are heavily dependent on regional and global supply chains. Consequently, Vietnam’s exports will be affected if there are any fluctuations in those supply chains.
At the fifth meeting of the 14th National Assembly on May 26, Minister of Industry and Trade Tran Tuan Anh gave a presentation on a number of issues related to export activities. He said that Vietnam’s exports have been on the right track in recent years with a shift to processed and manufactured products. Domestic products have penetrated many major markets around the world. Last year, 28 products reached an export value of more than US$1 billion each.
There are, however, some obstacles which remain in the way of consistent growth for exports. In spite of the market reach, export growth is unsustainable due to unstable and inconsistent product quality and an overreliance on some markets such as China and the EU.
To ensure this does not become a bigger problem than it already is, Vietnam must diversify its export markets to ensure sustainable growth.