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Trade - Service
Jan 11, 2018 / 07:38

Expectation for Vietnam’s billion-dollar-export markets

Ngoc Thuy

2017 ended with an impressive trade value of US$ 212 billion, an increase of 21% over the last year’s figure. Expectation thus will be even higher for 2018, as such, Vietnam’s billion-dollar-export markets will once again in the focus of attention.

By the end of 2017, among 200 countries and regions maintaining trade relation with Vietnam, 4 markets have spent tens of billion of USD importing Vietnamese goods, including the US (US$ 41.5 billion), followed by China (US$ 35.3 billion), Japan (US$ 16.8 billion) and Korea (US$ 15 billion). 
 
Illustration photo.
Illustration photo.
These countries will continue to be main markets with major contribution to Vietnam’s export growth in 2018, said the Ministry of Industry & Trade. In the context of large global apparel exporters such as China, Bangladesh and Turkey witnessed drops in export value of 1.2%, 1.32% and 4% respectively, Vietnam’s textile & garment industry had achieved the export target of US$ 31 billion in 2017, indicating the necessity to prioritize main export markets. 

As the largest market for Vietnam’s textile & garment industry, export value to the US accounted for US$ 15 billion, in which apparel products reached US$ 12.5 billion and US$ 3 billion for other products. Therefore, changes in demand from markets like the US will have big impact to Vietnam’s prospect in fulfiling target export value. 

For China, despite the apparel’s export value is less than one fifth of the US, but out of the textile’s export value of US$ 3.6 billion, Chinese market contributed to more than two third of its value. Currently, Vietnam exporting companies are in search of new export markets, however, it is unlikely to obtain the target export value without the contribution from billion-dollar-markets. 

The high growth rate of export value in 2017, in combining with high prospects in main markets are thanks to Vietnam’s enterprises started taking advantages from Free trade agreements (FTA) between Vietnam and trading partners. 

In term of fishery products, in 2017, Vietnam’s seafood export to the European Union (EU) is estimiated at US$ 1.47 billion, up 21.2% over the last year period. For 2018, EU is expected to be the largest seafood importer of Vietnam.  

Meanwhile, the Vietnam’s leather and footwear industry in 2017 contributed US$ 17 billion in 2017, for which the US, EU and Japan continues playing a major part. The prospect for this industry in 2018 will be even higher than in 2017, thanks to the favorable condition from the Vietnam – EU Free Trade Agreement (EVFTA), which is expected to come into force in 2018, said the Vietnam Leather, Footwear and Handbag Association (LEFASO).

LEFASO also identifed the US to be the largest export market for Vietnam’s products, which accounts for 34% of total export value, followed by EU, and Japan. Besides, Vietnam’s export of leather and footwears to big markets such as Korea, Japan and China continue the stable growth rate.  

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