16:08 | 30/08/2016 Trade
(VEN) - The US is currently seen as Vietnam’s largest export market after maintaining constant growth. Vietnam-US diplomatic relations have increasingly become effective after 21 years of the normalization. The US has become one of Vietnam’s leading trade and investment partners, meaning that economic relations between the two countries have been strengthened.
According to the Ministry of Industry and Trade’s statistics, in the first seven months of the year, the US continued to be Vietnam’s largest export market with export growth of around three percent, reaching US$21.25 billion, accounting for 22 percent of the country’s total export turnover. Meanwhile, Vietnam’s import turnover stood at US$4.47 billion. As a result, Vietnam posted a trade surplus of US$16.78 billion with the US, recording the largest figure among markets and regions.
Vietnam has focused on seven key exports to the US including garments and textiles, footwear, wood and wood products, computers, electronic products and components, seafood, agricultural products, phones and spare parts. In the first half of this year, garment and textile exports to the US stood at US$5.42 billion, followed by footwear with US$2.16 billion, phones and spare parts with US$2.07 billion, electronic products and components with US$1.34 billion, wood and wood products with US$1.27 billion.
Although facing difficulties and showing signs of decline in large markets such as ASEAN, Japan, the Republic of Korea and the EU, exports to the US had maintained the growth in the beginning months of the year thanks to persification of goods, reasonable prices and good quality.
Opportunities for Vietnamese goods to increase its presence in the US are available thanks to the signing of the Trans-Pacific Partnership. Vietnam’s exports to the US such as rice, coffee, pepper, fruits and vegetables and honey will enjoy large preferential tariffs.
However Vietnam needs to change its export structure and strongly promote the participation in the global supply chains in order to improve added value in each export product. In particular, Vietnamese businesses need to adopt a methodical marketing strategy that is considered a prerequisite condition to ensuring sustainable exports to the US, contributing to further strengthening trade relations between the two countries in the coming time.
After the Trans-Pacific Partnership takes effect, Vietnam’s exports to the US could increase by more than 20 percent. According to estimates by the American Chamber of Commerce in Vietnam, garment and textile exports to the US could reach US$22 billion by 2020.