In 2023, Vietnam’s exports to the EU and the United States are estimated to be approximately US$166 billion, down 9.6%, while imports are estimated to be nearly US$41 billion, down 9.1% compared to 2022.
Vietnam’s exports to Europe and the United States drop sharply
Vietnam’s “Industrial and Trade News” reported on January 2 that in 2023, Vietnam’s trade in goods with the European and American markets will decline sharply, with the total import and export volume approximately US$208 billion, a 9.5% decrease from 2022. Among them, exports were approximately US$166 billion, a decrease of 9.6%; imports were approximately US$41 billion, a decrease of 9.1%; the trade surplus was approximately US$125 billion, of which the trade surplus with Europe was approximately US$33 billion, and the trade surplus with the Americas was approximately US$92 billion. Dollar.
The Department of European and American Markets of the Ministry of Industry and Trade of Vietnam stated that after maintaining rapid growth for many years, Vietnam’s exports to major European and American markets have declined sharply for the first time. Exports to the United States are expected to be US$96.9 billion, a decrease of 12.4% from 2022; the EU is US$43.7 billion, a decrease of 6.7%. %; CPTPP members in the Americas totaled US$13.1 billion, a decrease of 10.6%.
Overhead view of Hanoi Source: Xinhua News Agency
When analyzing the reasons for the decline in imports and exports to the European and American markets, the European and American Market Department of the Ministry of Industry and Trade of Vietnam pointed out: First, the global economy will decline in the first half of 2023, and the recovery of the world’s major economies in the second half will be slow and uneven. At the same time, Vietnam’s own economic openness is relatively large, so import and export activities are directly affected. According to the forecast of the International Monetary Fund, except for a few countries such as Mexico and Brazil, the GDP growth rate of many European and American countries is lower than 2.5%, such as the United States 2.1%, Canada 1.3%, the European Union 0.7%, the United Kingdom 0.5%, and Russia 2.2%.
Second, the import demand for goods in Vietnam’s main export markets has declined compared with last year. According to statistics from relevant partners, in the first 10 months of 2023, the EU’s imports from overseas markets fell by nearly 16%; the United States’ global imports fell by 6%.
Third, high inflation and the pressure brought by geopolitical instability have led to profound changes in the consumption behavior and habits of consumers in European and American countries, further increasing the difficulty of maintaining the export market.
Free trade agreement brings positive impact to Vietnam
Vietnam’s main export items include machinery, equipment, spare parts; phones, computers and spare parts; computers, electronic products and spare parts; textiles; leather shoes, leather bags; wood and wood products; compared with 2022, the average decline in seafood More than 10%.
At the same time, some other items also experienced good growth, including cameras, cameras and parts, which increased by 27%; various types of steel increased by 23.5%, especially some agricultural products such as rice, which increased by 53.3%; cashew nuts increased by 10.2%; fruits and Vegetables grew by 10.2%.
Source: Xinhua News Agency
Although trade growth has slowed down, thanks to the effective free trade agreements (EVFTA, CPTPP, UKFTA) signed with European and American market partners, the positive impact continues, maintaining Vietnam’s advantage in trade and investment activities in 2024.
The Department of European and American Markets of the Ministry of Industry and Trade of Vietnam said: “We will pay close attention to the market and promptly grasp the regional and global economic, political, policy and other situations that affect Vietnam’s trade.” This will be able to issue early warnings to the business community and provide policy suggestions to the government so that Respond appropriately.
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