Strong Recovery in Export Activities in the First Five Months of 2024

According to the Ministry of Industry and Trade, Vietnam’s export activities continued to show a strong recovery in the first five months of 2024. The successful signing of FTAs with major global economies has significantly contributed to boosting Vietnam’s export activities in recent years.

In 2022, Vietnam’s total import and export turnover exceeded USD 730 billion for the first time, with exports reaching USD 371.3 billion. Despite the global trade slowdown in 2023, exports still reached nearly USD 355 billion.

In the first five months of this year, exports continued to recover, growing by 15.2% to USD 156.7 billion, an increase of USD 20.72 billion. This growth was largely driven by various measures to maximize opportunities from FTAs that Vietnam has signed.

Vietnam’s FTAs: An Overview

Vietnam has signed and basically concluded negotiations for 17 FTAs with over 60 countries and territories. The country is currently negotiating and preparing to start negotiations for three agreements and one economic framework (the Indo-Pacific Economic Framework for Prosperity (IPEF)).

Exports to FTA partner countries account for about 65% of Vietnam’s total export turnover. In 2023, total export turnover enjoying preferential import taxes under FTAs exceeded USD 86 billion, up 9.2% from 2022, excluding exports to FTA partner markets that have eliminated tariffs to 0%.

Despite these achievements, the Ministry of Industry and Trade notes that the preferential export turnover under FTAs is still relatively low, and Vietnam’s exports still depend heavily on a few major markets.

Future Strategies and Goals

To address these challenges, Vietnam aims to continue exploiting and expanding export markets, maintaining and developing key and traditional markets, and effectively leveraging markets with FTAs (CPTPP, EVFTA, UKVFTA, etc.). Additionally, Vietnam plans to strengthen exploration of potential markets such as Russia, India, the Middle East, and Africa.

Vietnam will also focus on negotiating, signing, and implementing trade and economic agreements with potential partners and economies complementary to Vietnam’s economy to open new export opportunities.

Enhancing Competitiveness

To improve competitiveness, Vietnam needs to enhance the export capacity of key sectors such as processed and manufactured industrial goods, which regularly account for 85% of the country’s total export turnover, and agricultural, forestry, and fishery products, which currently contribute over USD 50 billion annually and are expected to continue growing rapidly in the coming years.

FTAs Signed and Under Negotiation

I. FTAs in Effect

1. AFTA: Effective since 1993 (ASEAN)
2. ACFTA: Effective since 2003 (ASEAN, China)
3. AKFTA: Effective since 2007 (ASEAN, South Korea)
4. AJCEP: Effective since 2008 (ASEAN, Japan)
5. VJEPA: Effective since 2009 (Vietnam, Japan)
6. AIFTA: Effective since 2010 (ASEAN, India)
7. AANZFTA: Effective since 2010 (ASEAN, Australia, New Zealand)
8. VCFTA: Effective since 2014 (Vietnam, Chile)
9. VKFTA: Effective since 2015 (Vietnam, South Korea)
10. VN �EAEU FTA: Effective since 2016 (Vietnam, Russia, Belarus, Armenia, Kazakhstan, Kyrgyzstan)
11. CPTPP: Effective since 30/12/2018, effective in Vietnam from 14/1/2019 (Vietnam, Canada, Mexico, Peru, Chile, New Zealand, Australia, Japan, Singapore, Brunei, Malaysia, United Kingdom)
12. AHKFTA: Effective in Hong Kong (China), Laos, Myanmar, Thailand, Singapore, and Vietnam from 11/06/2019; fully effective from 12/02/2021 (ASEAN, Hong Kong (China))
13. EVFTA: Effective from 01/08/2020 (Vietnam, EU – 27 members)
14. UKVFTA: Provisionally effective from 01/01/2021, officially effective from 01/05/2021 (Vietnam, United Kingdom)
15. RCEP: Effective from 01/01/2022 (ASEAN, China, South Korea, Japan, Australia, New Zealand)
16. VIFTA: Officially signed on 25/07/2023 (Vietnam, Israel)
17. Vietnam �UAE FTA: Negotiations basically concluded (Vietnam, UAE)

II. FTAs Under Negotiation

1. Vietnam â€?EFTA FTA: Negotiations started in May 2012 (Vietnam, EFTA – Switzerland, Norway, Iceland, Liechtenstein)
2. ASEAN �Canada: Negotiations restarted in November 2021 (ASEAN, Canada)
3. Vietnam â€?Mercosur: Preparations underway to start negotiations (Vietnam, Mercosur – Argentina, Brazil, Paraguay, Uruguay)

III. Indo-Pacific Economic Framework (IPEF) 14 participating countries: USA, Australia, Brunei, Fiji, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea, Thailand, Vietnam

Source: baodautu.vn