Diversifying export markets for sustainable development

Market diversification, export activities achieved good results

The latest report of the Ministry of Industry and Trade shows that the export turnover of goods to most markets, especially markets that are major trading partners of our country in the first 7 months of 2024, all had a good recovery and achieved high growth at double digits.

Of which, the United States continues to be our country's largest export market with an estimated turnover of 66.09 billion USD, accounting for 29% of the country's total export turnover and increasing by 24.4% over the same period last year (the same period last year decreased by nearly 20%); followed by the Chinese market with an estimated turnover of 33.38 billion USD, up 7.2%; the EU market is estimated at 29.34 billion USD, up 15.8%; South Korea is estimated at 14.39 billion USD, up 9%; Japan is estimated at 13.46 billion USD, up 2.8%.

Import and export to many markets are improving (Photo: VNA)

Notably, trade promotion and export market expansion continued to achieve positive results, combining the exploitation of traditional markets with the expansion of new markets (Africa, Eastern Europe, Northern Europe, West Asia). Therefore, our country's exports to most of our major markets and trading partners in recent times have had a good recovery and achieved positive growth.

For example, fruits and vegetables are currently an export item with very high growth. The Vietnam Fruit and Vegetable Association said that since the beginning of 2024, the strong increase in market demand has helped increase the export turnover of fruits and vegetables. In July 2024, fruit and vegetable exports brought in 477 million USD, an increase of 18% over the same period last year. In the first 7 months of 2024, the export turnover of fruits and vegetables reached over 3.8 billion USD, an increase of 23.4% over the same period last year.

Mr. Dang Phuc Nguyen - General Secretary of the Vietnam Fruit and Vegetable Association said that in the export structure, Northeast Asian countries such as China, Korea, Japan... account for 80% of turnover; the remaining 20% ​​is Europe, the United States, Australia, and the Middle East.

The two Northeast Asian countries, China and South Korea, have the highest export turnover. Of which, China is the leading market, accounting for 64% of total export turnover with 2.1 billion USD, up 22% over the same period last year.

In recent times, fruits and vegetables have also been exported to other regions such as Europe, America, Oceania and Africa, however the export value to these regions is still only a small proportion, so there are still many opportunities for the fruit and vegetable industry to continue expanding its market in the coming time.

Notably, with an average import demand for fruits and vegetables of 153 billion USD/year in the period 2019 - 2023, Europe is the largest fruit and vegetable import market in the world (according to data from the International Trade Center). However, the proportion of imports from Vietnam accounts for only 0.22% of the total import value of Europe.

Regarding localities, according to the Department of Industry and Trade of Thai Binh , in the past 2 years, the province has organized many working delegations to bring businesses to promote investment and trade in Sweden, Norway, France, the Netherlands, the UK, Italy, Korea, Japan, China, Australia, New Zealand, etc. These are all large markets with great potential and preferential mechanisms on import and export tariffs because they are members of free trade agreements - FTAs ​​that Vietnam participates in, but the province's export turnover to these markets is still modest. Exploiting these markets well will open up the flow of goods exported from the province to the world, not only solving the consumption output but also increasing the production value for people and businesses.

In fact, right after the trade promotion trip to Northern Europe by the provincial leaders, a delegation of Counselors from Sweden and other Northern European countries came to Thai Binh to learn about the agricultural and food processing industry, construction materials and support businesses to connect and consume products in the Northern European market.

According to the synthesis and analysis from the Import-Export Management Department - Department of Industry and Trade, currently, Thai Binh province's goods have been exported to 102 countries and territories. In particular, the Asian, European and American markets have been exploited and developed relatively effectively by enterprises in the province with the export of goods to 74 countries and territories.

In the first 7 months of 2024, Thai Binh province's export turnover is estimated to reach 1,604 million USD, an increase of 8.8% over the same period in 2023; Asia is the largest export market, reaching 872 million USD (accounting for 54.4%), an increase of 12.6% over the same period; followed by America reaching 469 million USD (accounting for 29.2%); Europe reaching 169 million USD (accounting for 10.5%)... In addition, there are also new markets in Europe, America, Africa...

Continue to diversify export markets

From now until the end of the year, to promote the achieved results, the Ministry of Industry and Trade determines to focus on promoting export promotion activities for key markets, especially making the most of incentives brought by FTAs ​​such as: CPTPP, EVFTA, RCEP... to diversify export markets.

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

The Ministry of Industry and Trade also regularly maintains trade promotion conferences with the Vietnamese Trade Office system abroad. Directs the Vietnamese Trade Office system in market areas to regularly update information on foreign market situations; regulations, standards, and conditions of foreign markets that may affect Vietnam's import-export activities and make recommendations to localities, associations, and import-export enterprises.

In addition, the organization disseminates and guides the content of commitments and how to take advantage of incentives from FTAs ​​to businesses, industry associations and local specialized management agencies in many forms, directly, online, convenient for searching, exploiting, etc. Support businesses to make 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