Vietnam’s import-export turnover surpasses US$500 billion

12:57 | 25/01/2020 Trade

(VEN) - Vietnam’s total import-export turnover surpassed US$500 billion in 2019, with the country recording a trade surplus for the fourth consecutive year.

vietnams import export turnover surpasses us 500 billion
Leather and footwear exports record steady growth

US$500 billion mark

Effective use of free trade agreements has resulted in steady growth for Vietnam’s leather and footwear exports. The US removal of preferential policies for China and India’s footwear exports has also created more favorable conditions for Vietnam. In addition, the effect of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has helped Vietnam’s leather and footwear industry promote exports to the American markets since Canada and Mexico are member nations. Vietnam’s leather and footwear exports reached an estimated US$21.7-21.8 billion in 2019, exceeding the industry’s own target of US$21.5 billion.

Many other Vietnamese goods also maintained high export growth in 2019, such as phones, computers, garments and textiles, and wood and wood products, helping the country achieve the US$500 billion mark in total import-export turnover in mid-December. Vietnam prides itself on this result given that many countries around the world are seeing a slowdown in trade.

According to Minister of Industry and Trade Tran Tuan Anh, Prime Ministerial Decision 2471/QD-TTg approving the strategy for sustainable imports and exports during the 2011-2020 period, targeted average export growth rate of 10 percent per year and a gradual trade deficit reduction.

However, improvement of Vietnam’s production and export capacities, market development, restructuring state-owned enterprises, and enhancing access to capital, have helped Vietnam complete and exceed those targets.

Record high trade surplus and foreign reserves have also helped Vietnam resolve macroeconomic problems. Tran Tuan Anh said that with an average increase of 13 percent per year throughout the decade, Vietnam is among the world’s top 30 countries in terms of trade growth.

Minister Tran Tuan Anh also attributed the favorable results to improved business acumen in grasping opportunities provided by free trade agreements, adding that Vietnam had negotiated and signed 16 free trade agreements, 12 of which have already come into force. Vietnamese goods are available in 200 markets around the world, and export growth in markets with free trade agreements to which Vietnam is a signatory has maintained a double-digit pace.

vietnams import export turnover surpasses us 500 billion
Wood exports are dominated by furniture

Plans for 2020

According to a resolution on socioeconomic development in 2020 adopted by Vietnam’s National Assembly, exports are set to grow by seven percent this year but export value growth will trail behind import value growth by about three percent.

Vietnam is consistent in pursuing its foreign policy of independence, self-reliance, peace, cooperation and development, diversification and multilateralization of foreign relations, while actively bolstering international integration. Vietnam will make greater efforts to maintain macroeconomic stability, improve production capacity and strengthen administrative reforms, while protecting Vietnamese goods against the risk of origin fraud.

The Ministry of Industry and Trade will focus on making the most of opportunities provided by free trade agreements, seeking market development solutions, and removing barriers to enter new markets. The ministry will coordinate with relevant ministries, departments, localities, associations, businesses and media agencies to promote information dissemination on market development.

The ministry will also enhance advertisement and promote branding for key and potential exports. Other measures include strengthening administrative reforms, creating a favorable environment for business and investment, and overcoming other difficulties facing businesses.

In particular, the ministry will focus on fighting origin fraud, essential for protecting brands and the rights of consumers, as well as creating a healthy business environment.

Minister of Industry and Trade Tran Tuan Anh said that in addition to state support, businesses should make greater efforts to create a breakthrough in import-export activities.

Phuong Lan