Trade Triumphs: Vietnam’s FDI Sector Propels Export Growth

In the initial months of the current year, Vietnam’s FDI sector solidified its position as a key export contributor, generating $43.2 billion in revenue, marking a 14.7% increase and constituting 72.8% of the nation’s total export earnings.

Notable growth was observed in the export of electronics, machinery, and textiles, with increases between 4.1% and 33.9%, as reported by Dau tu Newspaper.

Concurrently, the demand for imported materials for production, such as electronic components and textiles, rose by 18%, reflecting the sector’s robust activity.

Related: Here’s how to set-up an import – export company in Vietnam as a foreign investor 

Vietnam achieved a trade surplus of $4.72 billion during this period, with the FDI sector, inclusive of crude oil, contributing an $8.25 billion surplus.

The United States emerged as a significant importer, purchasing $17.4 billion in goods from Vietnam, up 33.7% from the previous year, leading to a $15.2 billion trade surplus for Vietnam, a 36.3% increase year-over-year.

FDI enterprises were the primary suppliers of the most sought-after products in the US, including technology, textiles, and footwear.

Trade Counsellor Do Ngoc Hung projected that the US market could potentially yield over $100 billion in export revenues for Vietnam by 2025. However, he cautioned about the increasing trade barriers imposed by the US to safeguard its domestic industries and urged Vietnamese entities to remain vigilant of the US’s political and policy shifts for appropriate adaptation.

In the EU market, Vietnam’s exports soared to $7.7 billion, up 14.2% compared to last year, a trend that’s likely to persist, propelled by the EVFTA. Since the agreement’s enactment in August 2020, trade between Vietnam and the EU has seen double-digit growth, surpassing the previous 5%-7% increase in exports and 3%-5% in imports.