Vietnam Trade Surges: Export Growth Soars
Vietnam’s foreign trade is on track to break its 2022 record of US$732 billion, thanks to a significant rise in both exports and imports over recent months. In July, foreign trade reached US$70.11 billion, followed by US$70.65 billion in August, setting new monthly records. This marks the first time monthly trade figures have surpassed the $70 billion mark. Vietnam has not achieved this feat since 2022.
Vietnam’s exports hit a high of US$37.59 billion in August, driven by strong demand from key markets. The cumulative export value in the first eight months of this year reached US$265 billion, a 15.8% year-on-year increase. On the import side, Vietnam saw a 17.7% rise, totaling US$246 billion. This rise was largely due to growing demand for materials needed for export manufacturing. Imports of production materials accounted for 93.9% of the total, while consumer goods made up the rest. Vietnam’s trade surplus now stands at US$19.07 billion, reflecting the strong export growth.
Manufacturing benefits from growth in Vietnam trade export
Foreign trade and industrial production have emerged as bright spots in Vietnam’s economic landscape. According to Lê Quốc Phương, former Deputy Director of the Industry and Trade Information Centre, industrial products accounted for over 88% of total exports. Subsequently, agricultural and mineral products made up the remaining 12%.
Vietnam’s manufacturing sector is also benefiting from strong order inflows. Currently, the Purchasing Managers’ Index (PMI) for August stands at 52.4 points. This number indicates continued growth in trade. The Vietnam National Textile and Garment Group (Vinatex) reported sufficient orders through the end of 2024. Vinatex also expects further growth in the sectoral of 8-10%. The textile and garment industry earned $28.5 billion in the first eight months of the year, up 7.9% year-on-year.
Given the steady trade momentum and continued import growth, Vietnam’s total foreign trade for 2024 is expected to surpass US$790 billion. If the current trend hold, Vietnam will likely break last year’s record.
