In recent years, the trade situation between Vietnam and Malaysia has recorded many remarkable fluctuations, demonstrating the connection and open cooperation potential between the two countries. The total two-way trade turnover between Vietnam and Malaysia in 2021 reached 12.58 billion USD, an increase of nearly 26% compared to 2020 despite being heavily affected by the Covid-19 pandemic. In 2022, bilateral trade turnover continued to increase by 16.8% to 14.69 billion USD, showing the increase in demand for goods and services as well as efforts to strengthen economic cooperation between the two countries.
Bilateral trade between Vietnam and Malaysia in 2023 reached US$12.67 billion, down 13.8% year-on-year amid a weakening global economy, supply chain disruptions and inflationary pressures. However, this adjustment does not diminish the importance of Malaysia in Vietnam’s trade strategy, especially at a time when Vietnam is expanding economic relations with regional partners.
In the first 8 months of 2024, bilateral trade between Vietnam and Malaysia continued to record positive signals with turnover reaching 9.62 billion USD, up 15.2% over the same period last year and accounting for 1.9% of Vietnam's total import-export turnover.
The trade structure between the two countries also shows diversity. Vietnam mainly exports goods such as machinery, electronic equipment and agricultural products. In the opposite direction, Vietnam imports many high-tech goods and production materials from Malaysia. This not only contributes to Vietnam's economic development but also creates favorable conditions for Malaysia to access Vietnam's large market.
Chart: Total two-way trade turnover between Vietnam and Malaysia
period 2020-2023
Unit: Billion USD
Source: General Department of Customs
Despite recent challenges, the potential for trade development between Vietnam and Malaysia remains huge. Both countries can strengthen cooperation in the fields of investment, technology and trade, thereby expanding the trading space and maximizing the comparative advantages of each side. These efforts will not only help stabilize trade turnover but also create a solid foundation for a strategic partnership in the future.
On export activities:
In August 2024, Vietnam's goods exports to the Malaysian market recorded remarkable changes. Export turnover reached 434.72 million USD, up 1.14% compared to July 2024, but down 9.26% compared to August 2023. This figure reflects the challenges that both economies are facing, such as fluctuations in commodity prices and other external factors.
In the first 8 months of 2024, the total export turnover of goods from Vietnam to Malaysia reached 3.48 billion USD, up 4.27% over the same period last year. With this result, Malaysia is currently the 20th largest export market of Vietnam in the world and the 5th largest of Vietnam in Southeast Asia (after Thailand, Indonesia, Philippines and Cambodia). This growth shows that Vietnam still maintains an important position in the Southeast Asian supply chain, while affirming the sustainable trade relationship between the two countries. The main items exported to Malaysia include phones, machinery and equipment, and consumer goods, showing the diversity in product structure.
The structure of Vietnam's export products to Malaysia shows positive signs, especially in the group of computers, electronic products and components. According to statistics, in August 2024, the export turnover of this group of products to Malaysia reached 81.76 million USD, a sharp increase of 73.28% compared to the previous month and 21.66% compared to the same month last year. This shows that the demand for high-tech products in Malaysia is growing strongly.
In the first 8 months of 2024, the total export turnover of computers and components to Malaysia reached 406.33 million USD, down slightly by 4.07% over the same period last year, accounting for 11.67% of Vietnam's total export turnover to Malaysia. This contribution shows the importance of technology products in the trade relationship between the two countries. This slight decline can be explained by global challenges, such as component shortages and increasingly fierce competition from other countries.
Second on the list is iron and steel of all kinds with an export turnover of 52.95 million USD in August 2024, up 48.77% over the previous month and 18.44% over the same month last year. In the first 8 months of the year, Vietnam exported 395.92 million USD of iron and steel of all kinds to Malaysia, up 1.15% over the previous month, accounting for 11.37% of Vietnam's total export turnover to Malaysia.
Table: Export turnover of Vietnamese goods to Malaysia
in August 2024 and the first 8 months of 2024
Group/item name | August 2024 (Million USD) | Compared to July 2024 (%) | Compared to August 2023 (%) | 8 months 2024 (USD million) | Compared to 8 months of 2023 (%) | Proportion 8 months 2024 (%) |
Total export turnover | 434.72 | 1.14 | -9.26 | 3,480.80 | 4.27 | 100 |
Computers, electronic products and components | 81.76 | 73.28 | 21.66 | 406.33 | -4.07 | 11.67 |
Iron and steel of all kinds | 52.95 | 48.77 | 18.44 | 395.92 | 1.15 | 11.37 |
Rice | 31.76 | -19.59 | 36.88 | 345.94 | 152.93 | 9.94 |
Phones of all kinds and accessories | 26.93 | -8.25 | -39.2 | 302.28 | 0.16 | 8.68 |
Machinery, equipment, tools, other spare parts | 33.32 | -9.92 | -0.42 | 271.28 | 6.1 | 7.79 |
Chemical products | 6.79 | -51.53 | -90.8 | 210.52 | -53.4 | 6.05 |
Vehicles and spare parts | 14.36 | -18.97 | -17.76 | 119.90 | -18.91 | 3.44 |
Chemical | 3.74 | -83.38 | -65.9 | 114.83 | 140.6 | 3.30 |
Coffee | 13.78 | -12.47 | 139.2 | 108.64 | 118.07 | 3.12 |
Textiles | 15.29 | 9.79 | 7.11 | 106.64 | 9.78 | 3.06 |
Wood and wood products | 12.78 | -13.35 | -5.23 | 103.44 | 10.1 | 2.97 |
Shoes of all kinds | 11.45 | 7.81 | 10 | 77.83 | 13.62 | 2.24 |
Seafood products | 9.02 | -23.15 | -17 | 72.00 | -10.14 | 2.07 |
Animal feed and raw materials | 8.06 | -18.27 | -34.81 | 67.42 | -9.88 | 1.94 |
Paper and paper products | 6.51 | -1.58 | 10.19 | 45.97 | -7.22 | 1.32 |
Other base metals and products | 5.81 | -5.6 | 58.74 | 42.77 | 14.82 | 1.23 |
Glass and glass products | 4.85 | -4.8 | -46.37 | 40.73 | -43.8 | 1.17 |
Plastic products | 4.39 | 4.28 | 16.62 | 40.67 | 54.56 | 1.17 |
Vegetables and fruits | 4.77 | -5.04 | 15.04 | 37.72 | 5.35 | 1.08 |
Raw plastic | 4.67 | -19.17 | -1.07 | 37.27 | 30.37 | 1.07 |
Clinker and cement | 5.33 | 43.96 | -18.97 | 34.34 | -25.88 | 0.99 |
Fertilizers of all kinds | 5.35 | -5.39 | 31.96 | 32.61 | 44.95 | 0.94 |
Iron and steel products | 3.98 | -16.68 | 43.21 | 29.96 | 16.93 | 0.86 |
Gasoline of all kinds | 10.64 | 247.18 | 403.69 | 27.41 | 41.35 | 0.79 |
Fibers, textile yarns of all kinds | 2.33 | -18.9 | -52.43 | 21.08 | -15.97 | 0.61 |
Handbags, wallets, suitcases, hats and umbrellas | 2.10 | -6.72 | 16.07 | 16.38 | 32.3 | 0.47 |
Rubber | 4.54 | -6.93 | 550.78 | 15.93 | 194.35 | 0.46 |
Electrical wires and cables | 1.91 | -10.47 | -13.9 | 12.88 | -14.19 | 0.37 |
Confectionery and cereal products | 1.88 | 17.08 | -6.56 | 12.74 | -7.74 | 0.37 |
Ceramic products | 1.43 | -23.78 | -5.36 | 10.34 | 3.14 | 0.30 |
Rubber products | 1.20 | -5.57 | 28.33 | 9.09 | -1.67 | 0.26 |
Crude oil | - | 7.92 | ||||
Pepper | 1.05 | -16.96 | 90.38 | 7.17 | 47.37 | |
Toys, sporting goods and parts | 1.62 | 28.49 | 186.59 | 7.02 | 40.98 | |
Cassava and cassava products | 0.29 | 106.86 | -62.56 | 6.17 | 37.01 | |
Ore and other minerals | 0.09 | -85.68 | -93.27 | 5.41 | 42.86 | |
Furniture products from materials other than wood | 0.54 | -29.36 | 0.84 | 4.75 | 28.95 | |
Tea | 0.45 | -19.07 | 43.09 | 3.02 | 48.7 | |
Coal of all kinds | 0.03 | |||||
Other goods | 37.02 | -4.42 | 16.44 | 268.45 | 12.5 | 7.71 |
Source: General Department of Customs
Chart: Group of goods with the largest export turnover
to the Malaysian market in the first 8 months of 2024
(Unit: Million USD)
Source: General Department of Customs
Meanwhile, the latest statistics from the International Trade Center (ITC) in the first 6 months of 2024 also show that Vietnam's position in the supply chain of goods for Malaysia has undergone significant changes. Vietnam is currently Malaysia's 14th largest source of goods, accounting for 2.2% of Malaysia's total import turnover of goods from the world. Although this proportion has decreased compared to 2.36% in the same period last year, this does not reduce Vietnam's role in the context of global trade competition.
Chart: Malaysia's largest goods import markets in the first 6 months of 2024 (Vietnam ranked 14th)
Unit: %
Source: Calculated from ITC data
In the list of suppliers of goods to Malaysia, Vietnam is behind major markets such as China, Singapore, the United States, Taiwan (China), Japan, Indonesia, South Korea and Thailand. The presence of these competitors shows that the Malaysian market is very diverse and rich, however, Vietnam still maintains a certain position, especially in the Southeast Asian region, as the 4th largest supplier, after Singapore, Indonesia and Thailand.
Regarding import activities:
In August 2024, Vietnam's import turnover of goods from Malaysia reached 680.54 million USD, down 7.17% compared to the previous month and down 14.19% compared to the same month last year. This decrease could be due to many factors, including supply adjustments, changes in domestic consumption demand, as well as supply chain issues that many businesses are facing.
In the first 8 months of 2024, Vietnam imported a total of 6.14 billion USD from Malaysia, up 22.42% over the same period in 2023. This shows that although August witnessed a decline, the overall import trend from Malaysia still shows a positive trend, indicating stable demand from the Vietnamese market for goods from this country. The main imported items include machinery, electronic equipment and production materials, playing an important role in providing raw materials for domestic industries.
The structure of Vietnam's imports from Malaysia in the first 8 months of 2024 shows the prominence of the group of computers, electronic products and components. In August, the import turnover of this group reached 241.31 million USD, not only an increase of 17.3% compared to the previous month but also a sharp increase of 42.51% compared to the same month last year. Malaysia is becoming an important source of supply for Vietnam's electronics industry.
In the first 8 months of 2024, the total import turnover of computers, electronic products and components from Malaysia reached 1.43 billion USD, up 24.63% over the same period last year, accounting for a significant proportion of 23.38% of Vietnam's total import turnover of goods from this market.
Computers and components are not only an important factor in serving domestic consumption needs but also an essential source of raw materials for the production of other electronic devices, such as smartphones and smart home appliances. Steady growth in this sector also means that Vietnam is gradually improving its position in the global electronics industry.
Table: Import turnover of some Vietnamese goods from Malaysia in August 2024
Group/item name | August 2024 (Million USD) | Compared to July 2024 (%) | Compared to August 2023 (%) | 8 months 2024 (USD million) | Compared to 8 months of 2023 (%) | Proportion 8 months 2024 (%) |
Total KNNK | 680.54 | -7.17 | -14.19 | 6,140.85 | 22.42 | 100 |
Computers, electronic products and components | 241.31 | 17.30 | 42.51 | 1,435.68 | 24.63 | 23.38 |
Gasoline of all kinds | 12.86 | -85.19 | -94.42 | 1,367.59 | 34.40 | 22.27 |
Machinery, equipment, tools, other spare parts | 65.63 | -22.78 | 5.34 | 448.14 | 13.88 | 7.30 |
Other common metals | 39.63 | -17.66 | 5.04 | 371.25 | 41.11 | 6.05 |
Chemical | 49.17 | 4 | 80.58 | 357.17 | 31.59 | 5.82 |
Animal and vegetable fats | 33.97 | -6.71 | -29.85 | 306.83 | 12.36 | 5.00 |
Household electrical appliances and components | 15.51 | -5.34 | 52.27 | 236.62 | 5.9 | 3.85 |
Raw plastic | 42.89 | 43.82 | 21.94 | 227.39 | 9.92 | 3.70 |
Liquefied petroleum gas | 10.59 | 15.13 | 51.56 | 177.57 | 258.33 | 2.89 |
Chemical products | 19.54 | -4.75 | 11.6 | 148.37 | 12.42 | 2.42 |
Glass and glass products | 10.36 | -27.2 | 42.72 | 83.78 | 80.92 | 1.36 |
Paper of all kinds | 14.70 | 23.45 | 169.57 | 81.22 | 53.17 | 1.32 |
Fabrics of all kinds | 11.40 | 27.91 | 27.95 | 72.74 | 23.22 | 1.18 |
Plastic products | 7.81 | 4.59 | 11.98 | 56.94 | 9.99 | 0.93 |
Electrical wires and cables | 8.49 | -8.54 | 2.51 | 53.25 | -2.32 | 0.87 |
Other food preparations | 4.52 | -45.09 | -26.84 | 49.00 | 2.96 | 0.80 |
Milk and dairy products | 6.17 | 2.61 | -0.53 | 40.26 | 4.44 | 0.66 |
Iron and steel products | 4.50 | -4.2 | 29.65 | 32.86 | 9.26 | 0.54 |
Confectionery and cereal products | 5.14 | 7.43 | 31.97 | 29.55 | 5.83 | 0.48 |
Rubber products | 4.83 | 22.77 | 42.13 | 29.08 | 18.43 | 0.47 |
Rubber | 3.26 | -40.06 | 104.04 | 22.52 | 144.42 | 0.37 |
Fibers, textile yarns of all kinds | 1.95 | -57.71 | 21.97 | 21.66 | 9.51 | 0.35 |
Other petroleum products | 4.61 | 74.77 | 43.73 | 20.08 | -77.57 | 0.33 |
Iron and steel of all kinds | 1.15 | 13.61 | -29.84 | 19.77 | 36.56 | 0.32 |
Other common metal products | 3.44 | 29.4 | 68.83 | 19.25 | -7.84 | 0.31 |
Animal feed and raw materials | 2.66 | -33.85 | -12.68 | 19.07 | 9.86 | 0.31 |
Fertilizers of all kinds | 0.18 | -94.64 | 16.64 | 51.26 | 0.27 | |
Wood and wood products | 3.23 | 23.06 | 65 | 16.10 | -8.78 | 0.26 |
Auto parts and components | 2.42 | 12.1 | 42.28 | 15.42 | 34.86 | 0.25 |
Pesticides and raw materials | 2.39 | 195.76 | -12.58 | 13.54 | -7.27 | 0.22 |
Seafood products | 2.13 | 42.64 | 29.63 | 13.13 | -35.53 | 0.21 |
Textile, garment, leather and footwear materials | 1.45 | 1.93 | -23.28 | 12.61 | -19.7 | 0.21 |
Ore and other minerals | 2.42 | 93.43 | 261.86 | 11.63 | 48.18 | 0.19 |
Paper products | 1.26 | 4.56 | 29.46 | 7.60 | 7.57 | 0.12 |
Perfumes, cosmetics and toilet preparations | 1.01 | 3.89 | 30.87 | 7.33 | 34.76 | 0.12 |
Pharmaceuticals | 0.23 | -75.24 | 80.14 | 4.93 | 91.65 | 0.08 |
Tobacco raw materials | 0.55 | -8.84 | -3.1 | 4.06 | -0.76 | 0.07 |
Coal of all kinds | 0.00 | 2.95 | 1863.66 | 0.05 | ||
Vegetables and fruits | 0.29 | -21.62 | -15.95 | 2.58 | -2.32 | 0.04 |
Other means of transport and spare parts | 0.07 | 183.42 | -29.16 | 1.84 | 19.17 | 0.03 |
Other goods | 36.82 | 19.76 | 57.1 | 282.85 | 5.03 | 4.61 |
Source: Calculated from data of General Department of Customs
In the coming time, there is still a lot of room to promote bilateral trade between Vietnam and Malaysia, especially in the context that both sides are making efforts to take advantage of opportunities from regional trade agreements that both sides participate in such as RCEP and CPTPP. This is a solid foundation to promote trade and investment cooperation between Vietnam and Malaysia to continuously develop in the future.
Regarding the development orientation of the two countries in the coming time, on August 7, 2024, within the framework of his working visit to Malaysia, Vice Chairman of the National Assembly Nguyen Khac Dinh met with Deputy Prime Minister of Malaysia Dato Sri Haji Fadillah bin Haji Yusof. During the meeting, the two sides expected to soon bring bilateral trade turnover to 18 billion USD in a balanced direction; facilitate import and export and limit the application of trade barriers; strive to soon sign a cooperation agreement in the field of Halal in the coming time.
Referring to some specific areas of cooperation, the Malaysian Deputy Prime Minister said that the two countries have great potential for cooperation in the field of Halal food. Noting that Malaysia's Halal standards are recognized worldwide, the Malaysian Deputy Prime Minister suggested that Vietnam have a focal agency for Halal food, in which it can immediately refer to Malaysia's standards, models, and Halal food production processes; affirming that the Malaysian Halal Food Promotion Agency is ready to share experiences and send experts to support Vietnam in this field.
The Malaysian Deputy Prime Minister also said that with Vietnam's great potential for green energy development, the two countries can strengthen cooperation with each other and within the ASEAN framework following the cooperation model of the European Union countries.
Agreeing with the cooperation proposals of the Malaysian Deputy Prime Minister, Vice Chairman of the National Assembly Nguyen Khac Dinh said that he would discuss specifically with Vietnamese agencies, in which the Vietnamese Embassy in Malaysia would be the focal point to strengthen cooperation between the two countries. Currently, Vietnam has made a strong commitment to the international community to achieve the goal of zero net emissions by 2050. Vietnam has also issued and is implementing the Power Plan VIII, which focuses on developing clean energy sources and reducing environmental pollution. Appreciating the ideas and proposals of the Malaysian Deputy Prime Minister on strengthening clean energy cooperation within the ASEAN framework, the Vice Chairman of the National Assembly also said that more developed countries in the region need to support countries in this field for a harmonious, unified, united and sustainably developed ASEAN.
Source: https://moit.gov.vn/tin-tuc/thi-truong-nuoc-ngoai/thuong-mai-viet-nam-malaysia-con-nhieu-du-dia-phat-trien.html
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