Diversifying export markets for sustainable development

Market diversification has led to successful export activities.

According to the latest report from the Ministry of Industry and Trade , the value of goods exported to most markets, especially those that are major trading partners of Vietnam, has recovered well and achieved high double-digit growth rates in the first seven months of 2024.

Of these, the United States continues to be our largest export market with an estimated turnover of US$66.09 billion, accounting for 29% of the country's total export turnover and increasing by 24.4% compared to the same period last year (the same period last year saw a decrease of nearly 20%); followed by the Chinese market with an estimated turnover of US$33.38 billion, an increase of 7.2%; the EU market with an estimated turnover of US$29.34 billion, an increase of 15.8%; South Korea with an estimated turnover of US$14.39 billion, an increase of 9%; and Japan with an estimated turnover of US$13.46 billion, an increase of 2.8%.

Imports and exports to many markets are thriving (Photo: VNA)

Notably, trade promotion and export market expansion efforts continued to yield positive results, combining the exploitation of traditional markets with the expansion into new markets (Africa, Eastern Europe, Northern Europe, West Asia). As a result, Vietnam's exports to most of its major markets and trading partners have recovered well and achieved promising growth rates in recent times.

For example, fruits and vegetables are currently a rapidly growing export item. The Vietnam Fruit and Vegetable Association reports that since the beginning of 2024, strong market demand has boosted fruit and vegetable export turnover. In July 2024, fruit and vegetable exports brought in $477 million, an 18% increase compared to the same period last year. Cumulatively, in the first seven months of 2024, fruit and vegetable export turnover reached over $3.8 billion, a 23.4% increase compared to the same period last year.

According to Mr. Dang Phuc Nguyen, General Secretary of the Vietnam Fruit and Vegetable Association, in the export structure, Northeast Asian countries such as China, South Korea, and Japan account for up to 80% of the export value; the remaining 20% ​​comes from Europe, the United States, Australia, and the Middle East.

The two Northeast Asian countries, China and South Korea, have the highest export turnover. China is the leading market, accounting for 64% of total export turnover with $2.1 billion, a 22% increase compared to the same period last year.

In recent years, fruits and vegetables have also been exported to other regions such as Europe, America, Oceania, and Africa; however, the export value to these regions still accounts for only a small proportion, therefore there are still many opportunities for the fruit and vegetable industry to further expand its market in the future.

Notably, with an average annual import demand for fruits and vegetables of $153 billion between 2019 and 2023, Europe is the world's largest importer of fruits and vegetables (according to data from the International Trade Centre). However, imports from Vietnam account for only 0.22% of Europe's total import value.

Regarding local authorities, according to the Thai Binh Department of Industry and Trade, over the past two years, the province has organized numerous delegations to take businesses to promote investment and trade in Sweden, Norway, France, the Netherlands, the UK, Italy, South Korea, Japan, China, Australia, and New Zealand. These are all large, potentially lucrative markets with preferential import and export tariff mechanisms due to being member partners of free trade agreements (FTAs) that Vietnam participates in. However, the province's export turnover to these markets remains modest. Effectively exploiting these markets will facilitate the flow of the province's exports to the world, not only solving the problem of consumer demand but also increasing the production value for people and businesses.

In fact, immediately after the provincial leaders' trade promotion trip to Northern Europe, a delegation of Swedish and Nordic trade attachés visited Thai Binh to learn about the agricultural and food processing industry, construction materials, and to support businesses in connecting with and selling their products in the Nordic market.

According to a summary and analysis from the Import-Export Management Department of the Department of Industry and Trade, goods from Thai Binh province are currently exported to 102 countries and territories. Of these, the Asian, European, and American markets are relatively effectively exploited and developed by businesses in the province, with exports to 74 countries and territories.

In the first seven months of 2024, Thai Binh province's export turnover is estimated at US$1,604 million, an increase of 8.8% compared to the same period in 2023; Asia is the largest export market, reaching US$872 million (accounting for 54.4%), an increase of 12.6% compared to the same period; followed by the Americas at US$469 million (accounting for 29.2%); Europe at US$169 million (accounting for 10.5%)... In addition, there are new markets in Europe, America, Africa, etc.

Continue to diversify export markets.

From now until the end of the year, to build on the achievements already made, the Ministry of Industry and Trade has identified key areas for focus on boosting export promotion activities targeting key markets, especially maximizing the benefits offered by FTAs ​​such as CPTPP, EVFTA, RCEP, etc., in order to diversify export markets.

In addition, it is necessary to accelerate negotiations, signing, and ratification of new FTAs ​​and economic linkages, initially with Israel and the UAE, to diversify markets and supply chains and boost exports. Support businesses in carrying out trade promotion activities in new and potential markets that individual businesses have not yet had the opportunity to directly penetrate.

The Ministry of Industry and Trade also regularly holds trade promotion meetings with the system of Vietnamese Trade Offices abroad. It directs the system of Vietnamese Trade Offices in various market regions to regularly update information on the situation of foreign markets; regulations, standards, and conditions of foreign markets that may affect Vietnam's import and export activities; and to provide recommendations to localities, associations, and import and export businesses.

In addition, the organization disseminates and guides businesses, industry associations, and local specialized management agencies on the content of commitments and how to utilize preferential treatment from FTAs ​​through various forms, including direct and online methods, making it easy to access and utilize the information. This supports businesses in making the best use of opportunities to diversify export markets.

Source: https://congthuong.vn/da-dang-hoa-thi-truong-xuat-khau-de-phat-trien-ben-vung-341636.html