Market diversification is essential to develop exports

Market diversification is essential to develop exports
Market diversification is essential to develop exports

>> Vietnam exports 18.4 billion USD worth of phones and components in four months

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Experts recommend that companies maximize the potential of markets with which Vietnam has signed free trade agreements.
Photo: VNA/CVN

From January to April, Vietnam recorded total import-export revenue of USD 238.88 billion, an increase of 15.2 percent compared to the same period last year.

Exports reached over USD 123 billion, up 15% year-on-year, while imports reached over USD 115 billion, up 15.4% year-on-year.

In particular, the country had 21 products with an export turnover of more than $1 billion, accounting for 86.4% of the total export turnover.

It is worth noting that shipments to major markets such as the US, EU and China recorded double-digit growth. The United States is Vietnam’s largest export market, with an estimated turnover of USD 34.1 billion, up 19.1 percent from the same period last year.

Exports to China stood at USD 18 billion, an increase of 14.4% year-on-year, while those to the EU and the Republic of Korea reached USD 16.4 billion and 8. 4 billion USD, up 15% and 10.2% respectively.

Garco 10 general manager Thân Duc Viêt said the company received more orders in the first quarter of 2024 than the corresponding period last year. Positive signs were notably recorded in the order volume for the second quarter and the first half of the third quarter, he added.

Gia Dinh Group is in the same situation. The number of orders received increased by more than 30%, guaranteeing the employment of workers until September or October. In addition to tapping traditional markets such as the United States and the European Union, the company has expanded its customer base to Japan and the Republic of Korea and explored niche markets such as South Africa and Mexico .

A batch of durian from Vietnam intended for export to China.
Photo: VNA/CVN

Vegetable and fruit export companies like Ameii Vietnam, which previously focused on traditional markets such as the EU, US and China, have shifted to seeking orders from the Middle East and South Asia.

Despite the encouraging outlook, companies also face significant challenges in their export activities. For example, a series of regulations regarding environmentally friendly products, expanded manufacturer responsibilities, supply chain traceability, and requirements to reduce product carbon emissions have been implemented in the food market. EU. Countries exporting to this market must comply.

Experts recommend businesses to maximize the potential of markets where Vietnam has signed free trade agreements (FTAs). New markets such as Africa, the Middle East and South America are expected to be tapped, they noted.

According to economic expert Dinh Trong Thinh, Vietnam has participated in 19 bilateral and multilateral FTAs ​​with most of the world’s economies, 16 of which have been effective with more than 60 partners, covering five continents, which account for nearly 90% of the World GDP.

To achieve the export growth target by 2024, the Ministry of Industry and Trade (MoIT) is working to implement solutions, including efforts to expand FTA negotiations, to bring to fruition the incentives of the signed agreements and to innovate in trade promotion activities, said Tran Thanh Hai, deputy director of the Foreign Trade Agency under the said ministry.

VNA/CVN

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