In 2023, import and export activities between Vietnam and the European-American market will have many advantages from free trade agreements.
Vietnamese goods increase "coverage" in the European-American market
On February 3rd, Mr. Ta Hoang Linh, Director of Europe – America market department (Vietnam Ministry of Industry and Trade), said that global economy in 2022 faced many challenges and instabilities, but the trading between Vietnam and Europe – America’s countries continues to maintained relatively high growth rate, making an significant contribution to Vietnam’s trade surplus.
Specifically, in 2022, the total import and export turnover of goods between Vietnam and the European and American regions reached 9,4% growth rate, higher than 2021, reaching more than 230 billion USD.
In which, exports reached 184 billion USD, up 12,3% and accounting for nearly 50% of Vietnam's export turnover in 2022. Imports reached more than 46 billion USD, decreased 1% and accounted for 12,8% of Vietnam's import turnover. The trade surplus with this market reached 138 billion USD, helping Vietnam's trade balance reach a surplus of 12,4 billion USD.
The above positive results come from the positive export growth in key export markets such as: the US reached 109,4 billion USD, up 13,6% compared to 2021; EU27 reached 46,8 billion USD, up 16,7%; CPTPP countries in the Americas reached 13,1 billion USD, up 8,7%; UK reached nearly 6,1 billion USD, up 5,2%.
Advantages of FTAs
Specifically, CPTPP, EVFTA, VN-EAEU FTA, Vietnam-Chile and UKFTA continue to have a positive impact on trade, investment and especially exports of Vietnam.
However, at the same time, businesses will have to face the fact that the main export market in European countries may slow down but still maintain a positive growth rate except Russia.
Moreover, the fact that Europe and US countries maintain or increase sanctions against Russia; Continuing China strategy leads to these countries increasing their search for alternative sources of goods and investment locations while Vietnam may be an option.
This is especially true when all countries are focusing on food security and supply chain stability while Vietnam has achieved many successes in the production and export of agro-forestry-fishery products and economy stability.
In addition, Vietnam's commitment at COP26, when it brought net emissions to "zero" by the middle of the century. Therefore, moving towards the production of green products, protecting the environment will create a competitive advantage for Vietnam's exports in the future when the demand for these products in the Europe-America region is increased as environmental protection policies are gaining more attention.
"Vietnam will receive more and more support from developed countries in energy transformation, changing production towards a circular economy and sustainable development in both production and consumption," Mr. Linh commented.
Identifying difficulties and challenges
Specifically, the risk of economic recession, inflation and rising interest rates will reduce consumer demand i, including the Europe-America region; the Russian-Ukrainian conflict continues to negatively affect the global economy; protectionism policies of countries.
Developed countries are paying more attention to consumer safety issues, sustainable development, and climate change, which are the foundation for new policies related to materials, labor and environment for imported products from Vietnam.
In addition, when China reopens and some key export areas loosen restrictions, it will increase competition in Vietnam's export markets.
Facing the headwinds
Diversifying export markets; updating political and policy developments in the region and the world affecting trade with Vietnam, thereby giving warnings and reacting promptly.
Currently, markets such as the United States, Germany, UK, Netherlands... account for a large proportion of exports. However, Northern Europe, Eastern Europe, and Latin America are experiencing high growth rates, although small, but having plenty of room and also achieving remarkable export growth in recent years.
Typically, Poland (11%), Czech Republic (14,6%), Denmark (40%), Romania (up 52,6%), Slovenia (14,1%), Latvia (20,2%) ), Bulgarian (31%)…
Therefore, if there is an appropriate approach, Vietnamese goods can promote competitive advantages and increase presence in these markets. At the same time, it is necessary to increase and diversify key products in export, promote the exchange of commodity groups with competitive advantages.
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