Vietnam is the 21st largest export economy in the world and the 83rd most complex economy according to the Economic Complexity Index (ECI). In 2017, Vietnam exported $220B and imported $204B, resulting in a positive trade balance of $15.7B. In 2017 the GDP of Vietnam was $223B and its GDP per capita was $6.78k.
According to Department of Crop Production, the south of Việt Nam has the biggest fruit planting area of 600,000ha and total productivity 6.6 million tonnes, accounting for 67 percent of production nationwide which makes Vietnam a potential country for fruit products exporting.
The top export destination of Vietnam are the United State ($46.2B), China ($39.9B), Japan ($18.1B), South Korea ($16.1B) and Germany ($10.9B)
Vietnam borders China, Cambodia and Laos by land and Indonesia, Malaysia, the Philippines and Thailand by sea.
Spain-based FocusEconomics, which provides in-depth economic analysis globally, just released its fresh forecast for Vietnam’s economic prospects, stating that the Vietnamese economy will expand 6.7% in 2019.
“The economy will be one of the region’s star performers this year, buttressed by strong tourism, exports and industrial output,” the firm stated in a report.
Last week, Standard Chartered Bank also released its freshest projections that Vietnam will “remain the fastest-growing ASEAN economy in the near term, with 2019 growth being projected at 6.9%.”
One of the key drivers of high economic growth will be high exports.
According to the bank, the country’s export growth is expected to remain steady and outperform peers. Electronics exports, which make up about a third of the total, are likely to be less supportive than in recent years due to a reduction in external demand and lower semiconductor prices.
A slew of foreign enterprises are exporting significant volumes of wood. For example, Nam Dinh Export Foodstuff and Agricultural Products Processing JSC’s export turnover is forecasted to climb from US$50 million in 2018 to about US$55 million this year. Meanwhile, many other businesses such as Dai Thanh, Hiep Long, Tien Dat, Cancia Pacific, Phu Tai, and Minh Phat are also expected to rake in an export turnover of US$30-50 million for 2019, up 15% on-year.
“The wood industry’s export turnover has been rising strongly over the past few years from US$7 billion in 2016 to US$7.66 billion in 2017 and US$8.48 billion last year. The figure is projected to be US$11 billion this year,” Quyen said.
Last year, Vietnam’s wood export turnover strongly increased from many markets, such as France (25.5%), Japan (16%), Malaysia (100%), South Korea (48%), and the US (17.5%).
According to the MoIT, in the time to come, many types of export items from Vietnam will likely replace Chinese ones in the US market, perhaps because of the ongoing US-China trade-war. Especially textiles and garments.
Vietnam ranked the 4th out of Top 10 Exporting Countries of Textile and Apparel Industry. The Textile industry of Vietnam has benefited producers and buyers diversify their supply chains, backed by its low labor costs and industry focus on specialization, modernization and increasing value addition. With an export turnover of USD 37.93 Bn, Vietnam is the top 4th global exporters of textile and apparel. The country’s major focus is producing items with high competitiveness in the global market and improving its garment and textile supply chain. Vietnam’s textile and apparel consumption in both domestic and global market make deeper inroads into the textile market.
With its rising costs, China is no longer the go-to destination for many businesses, and Vietnam has arisen as a serious competitor. Recent trends show that the number of orders shifting from China to Vietnam has seen a significant increase.
For example, China’s Pearl River Delta, long known as one of the key factory centers for the world’s manufacturers (particularly those from Hong Kong) has now become too costly for many companies to stay in the region.
In the past few years, a growing number of businesses have relocated their operations from China to Vietnam in an attempt to escape rising costs and an increasingly complex regulatory environment.
Located in a strategic position for foreign companies with operations throughout Southeast Asia, Vietnam is an ideal export hub to reach other ASEAN markets