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Vietnamese goods still have a lot of room to go to the United States

10/07/2024 17:07

Computers; phones, components; machinery, equipment and spare parts; textiles and garments; footwear... exports from Vietnam to the United States reach a turnover of several tens of billions of USD per year and there is still a lot of room for growth.

Textile and garment is one of the products exported to the United States with high turnover. Source: Internet
1. Leading ASEAN in exports to the United States

Manufactured goods from Vietnam to the United States have increased sharply since the beginning of the year, reaching the highest increase among ASEAN members, twice as high as Thailand and Singapore.
Going through the first half of 2024, there have been approximately 55 billion USD of goods successfully exported to the United States, with the highest growth rate, up nearly 26% over the same period, leading and far exceeding the increase in goods exports to other markets such as the EU, ASEAN, South Korea, etc.

Specifically, Vietnam has 8 groups of goods with an export value of over 1 billion USD to the United States in the first 6 months of the year, of which, computers and components exceeded 10 billion USD.
In the list of items that the United States has imported a lot from Vietnam in the past 6 months, in addition to computers and phones, there are also machinery, equipment, spare parts, textiles, shoes, wood and wood products.

In 2023, the export turnover of goods to the United States will decrease by about 13 billion USD compared to 2022, due to the impact of the global economic and trade slowdown, but there are still 97 billion USD of Vietnamese goods sold to this market. In particular, the group of electronic goods exported to the United States alone has reached 25 billion USD in the past year. In particular, the United States is also the only export market that exceeds 100 billion USD/year.

Mr. Do Ngoc Hung, Vietnam's trade counselor in the United States, said: "Vietnam's exports to the United States in the first 5 months of this year accounted for 33% of ASEAN's total exports to the United States."
It is worth mentioning that many US policies are opening up great opportunities for Vietnamese goods. Vietnamese suppliers benefit from the policy of increasing purchases from other countries, reducing excessive dependence on some markets. Data shows that in 2023, smartphones exported from China to the United States will decrease by 10%, while this item imported from India will increase 5 times, or laptops from Vietnam to the United States will increase 4 times.

2. There is still a lot of room for growth

Mr. Nguyen Hong Duong, Deputy Director of the Europe-America Market Department (Ministry of Industry and Trade) once shared that right after Vietnam and the United States upgraded their relations to a Comprehensive Strategic Partnership, he received many phone calls from domestic businesses asking about opportunities and prospects for exporting goods to this market.

According to Mr. Duong, when the relationship between the two countries is upgraded, US businesses will increase investment in Vietnam, leading to companies of 3rd countries also investing in Vietnam in many fields such as semiconductors, supporting industries, healthcare, oil and gas, energy, etc  creating room for development in the coming time. Therefore, from his perspective, Mr. Duong said that Vietnam's exports to the United States in the short term will not create a sudden effect, but in the long term will increase.

At this time, many Vietnamese businesses and US businesses are waiting for the United States to soon recognize Vietnam as a market economy, in order to clear the "bottlenecks" for the exchange of goods, especially the fact that Vietnamese goods are vulnerable to high tariffs in trade remedy cases.

Assoc. Prof. Dr. Nguyen Thuong Lang assessed: "When the United States recognizes the market economy for Vietnam, it will greatly change Vietnam's role and position in the international arena, far different from when it is considered a non-market economy, causing many obstacles and barriers in trade cooperation relationships as well as attracting investment".

Accordingly, a series of goods, from shrimp, wood products, to textiles, tires... will add more opportunities when competing in the US market, Vietnamese goods will be reduced by the United States anti-dumping duties.On the other hand, US consumers also benefit more, when they have access to quality goods from Vietnam at affordable prices.

Present in Vietnam since 1995, Cargill - a US feed manufacturing group said: "Vietnam is an important market for Cargill. Cargill has long advocated for the recognition of Vietnam as a market economy, especially given the implications for key industries such as aquaculture."

In fact, Vietnam's classification as a non-market economy in recent years has led to the application of significant anti-dumping duties on items such as pangasius and shrimp, negatively affecting Cargill's competitiveness with important markets such as the United States.

"The recognition of the market economy for Vietnam will stimulate production and services in industries where Vietnam has export strengths, including agricultural products. This will promote greater economic cooperation between countries," said a Cargill representative.

It can be seen that the trade relationship between Vietnam and the United States has grown tremendously since the United States lifted the trade embargo on Vietnam in 1994 and the two countries resumed diplomatic relations in 1995. Nearly 30 years after the normalization of relations, the United States is now Vietnam's largest export market.

The Department of International Trade (US Department of Commerce) said: "Large FDI into Vietnam in recent years has helped promote Vietnam's economic growth. The United States also benefits from stronger trade ties. In the past five years, Vietnam's export revenue to the United States has increased by 230%, while the value of imports has increased by more than 175%."

Opportunities for Vietnamese goods to the United States are still great as the country continues to promote the strategy of diversifying supply sources, supply chains and prioritizing the ASEAN market. In particular, Vietnam has emerged as an important export production center, from processing and manufacturing industries to agriculture, forestry and fisheries.

The problem of Vietnamese suppliers is to keep pace with the new trend of US importers and consumers, standardize production in the direction of greening, cut emissions in production, store data on export goods to proactively provide timely information, etc  Full range of trade remedy cases in the United States.


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