Việt Nam’s exports in January reached nearly US$33.6 billion, marking a 42 percent increase over the same period last year, according to the Ministry of Industry and Trade. This surge represents the highest level since April 2022.
The total import and export value for the month surpassed $64 billion, reflecting a year-on-year increase of 38 percent. The growth in exports was primarily driven by the agriculture-forestry-fisheries and processing industries, which saw increases of nearly 97 percent and 38 percent, respectively. The export of phones and components also rose by over 56 percent, reaching nearly $6 billion.
Agricultural products continued to perform well, with coffee prices rising by more than 35 percent and rice prices increasing by 33.5 percent year-on-year. The United States remained Việt Nam’s largest export market, importing $9.6 billion worth of goods, while traditional markets such as China, the EU, and ASEAN also showed growth.
In January, Việt Nam’s imports totaled more than $30.6 billion, with China being the largest exporter at nearly $11 billion. The trade balance showed a surplus of $2.9 billion, with notable surpluses with the US and China.
The Ministry of Industry and Trade anticipates challenges for exports this year due to rising transport costs and global political tensions. The ministry plans to focus on stimulating domestic consumption, promoting production, and monitoring market developments to avoid shortages or disruptions in the supply of goods.
Vinfast to Introduce EV Models to Indonesian Market
VinFast, a Vietnamese electric vehicle (EV) manufacturer, announced its plans to introduce right-hand drive EV models to the international market during the Indonesia International Motor Show (IIMS) 2024, which will take place from February 15 to 25.
In a press release, VinFast stated that this move demonstrates its commitment to making EVs accessible globally. Tran Quoc Huy, CEO of VinFast Indonesia, expressed enthusiasm about the company’s launch in Indonesia, highlighting the country’s potential as Southeast Asia’s largest economy and a significant automotive market. VinFast has also announced plans to construct a manufacturing plant in Indonesia with an annual capacity of up to 50,000 EVs.
Ho Chi Minh City Pursues Economic Growth Amid Global Challenges
Ho Chi Minh City, Vietnam’s largest economic-financial center, reported high growth in 2023 despite facing global economic challenges. The city’s economy rebounded after being heavily impacted by the COVID-19 pandemic in 2021-2022. However, it faced global headwinds, including economic downturns, strategic competition among global powers, and climate change.
In the first quarter of 2023, the city’s gross regional domestic product (GRDP) grew by only 0.7 percent, the lowest among the five centrally run cities. Public investment was identified as a key driver for economic growth, but disbursement remained low. The municipal administration implemented several measures to spur economic growth, resulting in GRDP growth rates of 5.87 percent, 6.71 percent, and 9.62 percent in the following three quarters.
The city’s strong economic recovery has built confidence in other localities. In 2023, Ho Chi Minh City also aimed to enhance public services, promote administrative reform, and improve the investment environment. The disbursement rate for public investment rose significantly throughout the year, and the city attracted approximately $3.4 billion in foreign direct investment.
Key infrastructure projects, such as the Ring Road 3 Project and several bridge projects, were also initiated or reactivated to ease traffic congestion and support local development.
Việt Nam-Australia Bilateral Trade Declines in 2023
Bilateral trade between Việt Nam and Australia decreased by 12 percent in 2023, totaling $13.75 billion. Việt Nam exported $5.22 billion worth of goods to Australia and imported $8.53 billion.
Global economic uncertainties, high inflation, and exchange rate fluctuations were cited as factors contributing to the decline. Despite the overall decrease, some Vietnamese exports to Australia, such as crude oil, textiles, and garments, saw increases. The trade office has a positive outlook for future bilateral relations, highlighting Việt Nam’s strong export potential in various sectors.
Việt Nam: South Korea’s Third Largest Trade Partner in 2023
Việt Nam remained South Korea’s third-largest trade partner for the second consecutive year in 2023, with two-way trade reaching $79.43 billion. Vietnamese exports to South Korea decreased by 12.3 percent to $53.49 billion, while imports from South Korea dropped by 2.9 percent to $25.94 billion. The decline was attributed to falling chip exports.
Despite the decline, bilateral trade between the two countries has grown significantly since establishing diplomatic relations in 1992, further boosted by a free trade agreement signed in 2014.
Cruise Ship Brings Nearly 2,000 Tourists to Phu Quoc
The cruise ship Aida Bella, carrying 1,979 tourists, arrived at Phu Quoc Island in Kien Giang Province on February 2. The passengers, primarily from Europe, visited various attractions on the island and engaged in recreational activities such as snorkeling, fishing, and kayaking. Since January, Phu Quoc has welcomed 500,000 tourists, including 82,615 foreigners.
Increasing Competitiveness for Agricultural Exports to the US
The US is Việt Nam’s second-largest agricultural export market. Despite facing competition, Vietnamese exports of rubber, cashew nuts, seafood, and other products have shown resilience. The Vietnamese Trade Office in the US emphasizes the importance of meeting stringent US standards and suggests thorough market research and adherence to local laws for successful exports.
MNCs Seek Updates on Data Localisation Rules
The Ministry of Public Security in Việt Nam is considering changes to data localisation rules following concerns from the business community. Current regulations may not suit all businesses, and the ministry is open to feedback and potential amendments to ensure a fair legal environment. The Digital Sector Committee of the European Chamber of Commerce in Vietnam (EuroCham) has raised issues with the existing decree, seeking explicit guidance and harmonisation with international standards.
Vietnam’s Strategic Approach to the Halal Market
Vietnam is enhancing its strategy to tap into the Halal market, seeking stronger partnerships with Indonesia and other ASEAN nations. The country’s agricultural capabilities and potential for Halal food production provide a solid foundation for these partnerships. Vietnam aims to establish a foothold in the global Halal market, projected to be valued at $10 trillion by 2028. Efforts include obtaining Halal certification and meeting international standards to boost export competitiveness.
Global Pharmaceutical Companies Expand in Vietnam
Multinational pharmaceutical companies are increasing their presence in Vietnam, planning to introduce more innovative medicines and vaccines in 2024. Companies like Daiichi Sankyo, Novartis, Sanofi, GSK, Pfizer, and MSD are focusing on expanding their partnerships and enhancing access to healthcare products in Vietnam. These efforts aim to improve the quality of life for Vietnamese people and support the country’s healthcare sector’s development.
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