4 Export opportunities to Vietnam in 2023

Vietnam has had a record-breaking year in exports. Naturally, his B2B traders around the world are interested in whether Vietnam’s economy will continue to thrive in the future.

This article discusses some of the biggest export opportunities for Vietnamese wholesalers and manufacturers. We make some predictions about the future of exports in Vietnam and examine some factors that are creating new export opportunities.

Will Vietnam’s exports continue to grow strongly in 2023?

Last year, Vietnam experienced tremendous economic growth with a surge in exports. In August 2022, the country achieved record exports of $34.9 billion. This number has nearly quadrupled over the last decade.¹

This economy in Vietnam is expected to continue expanding over the next two years as exports continue to rise. Vietnam’s export industry ends at around US$34.4 billion annually and is expected to grow to US$40 billion by 2023. From there, in 2024 he is expected to reach US$42 billion.²

Growth has slowed a bit, but the forecast still shows an upward trend. This will continue to provide many opportunities for Vietnamese exporters.

4 Vietnam export opportunities in 2023

There are several factors that have led to the growth of exports in Vietnam. Let’s explore some of the factors that will create export opportunities next year.

1. Rising authority in world trade

As mentioned before, Vietnam’s export volume has grown rapidly over the past year, contributing to monumental growth over the past decade. There are many causes for this growth, ranging from political events and shifts in foreign investment, to pandemics and problems in global supply chains.

Each piece of the puzzle comes together to position Vietnam as a key player in the global economy. In fact, Vietnam is her one of the fastest growing economies in the world. The country has emerged from poverty and has proven to be an important player in global trade in just 20 years.³

Currently, Vietnam’s major export destinations include the United States, China, Japan, South Korea and the Netherlands. Last year, Vietnam exported goods worth her $96.3 billion to the United States and her $56 billion to China.^Four

In addition to exporting to the United States and China, Vietnam imports many agricultural products from these two countries. As the US and China are very important players in the global economy, these trade ties may continue to provide opportunities for small and medium enterprises (SMEs) in Vietnam.

2. Global manufacturing base

Until recently, China was seen as the go-to place for sourcing industrial goods. However, some changes in recent years have made his B2B buyers in some countries consider other options.

For the first time in a long time, China began to face real competitors in the manufacturing sector. Vietnam’s recent export growth has put the country’s manufacturing industry on the map.^Five Several industries in Vietnam have exploded due to their unique ability to meet the needs of recent changes in global demand.

Given that China is one of Vietnam’s most important trading partners, it may come as a shock that Vietnam is becoming a real competitor to China. However, Vietnam’s advantage over China in manufacturing and exporting is that Vietnam can offer lower manufacturing costs.

Later in this article, we will review some of the specific products and industries that have helped Vietnam establish itself and its reputation as a global manufacturing hub.

3. Free Trade Agreements (FTAs)

Vietnam is part of many free trade agreements (FTAs). For those of you who don’t know, an FTA is an alliance that allows free trade between two or more of her countries. These agreements are aimed at facilitating imports and exports to grow the economies of the participants.

Vietnam is a member of the Association of Southeast Asian Nations (ASEAN), so most of the FTAs ​​Vietnam participates in are with other Asian countries, but there are also some agreements that span South America, Oceania, Europe, and more.

Some of the most important FTAs ​​Vietnam participates in include:⁶:

• AFTA
• ACFTA
• AKFTA
• AIFTA
• AANZ FTA
• AHKFTA

As mentioned above, Vietnam’s largest trading partner is the United States. Note, however, that Vietnam does not have her FTA with the United States.

4. Joining the Regional Comprehensive Economic Partnership (RCEP)

On January 1, 2022, Vietnam is one of several countries to join the Regional Comprehensive Economic Partnership (RCEP).⁷ RCEP is made up of 16 countries around the world and facilitates B2B trade with intercontinental connectivity.

This is an alliance established to facilitate several free trade agreements that benefit counties in East Asia. The goal behind this is to facilitate economic stimulation and improve market access for her B2B buyers and sellers in these countries.

This partnership is still relatively new, so there is a lot of potential for growth. Vietnamese exporters should keep a close eye on the news surrounding RCEP. Because the new alliances and FTAs ​​that will emerge from this partnership will create even more opportunities in new overseas markets.

6 popular Vietnamese exports in 2023

While there are several product categories that continue to lead Vietnam’s export industry, there are some minor changes that create interesting new opportunities.

With that said, here are some of Vietnam’s top exports to watch in 2023.⁸

1. Phone

Telephones constitute the most important group of exports from Vietnam, accounting for 21% of shipped goods.⁹ A recent surge has made Vietnam the second largest mobile phone manufacturer in the world.^Ten

Much of this growth has to do with Samsung’s operations in Vietnam. However, this presents opportunities for other mobile phone manufacturers and wholesalers as the country establishes leadership and authority as a place to source phones.

The Vietnamese government has a formal partnership with Samsung to promote the growth of the country’s export industry.¹¹

2. Textile

Textiles are another of Vietnam’s major exports, accounting for 12% of shipped goods.¹²

Textiles have long been a popular export from Vietnam and there are currently 6000 textile companies in Vietnam. Vietnam recently surpassed Bangladesh as the world’s top textile exporter. This is a great feat considering Bangladesh’s authority in this field.¹³

3. Electronics

Computers and electronics account for 12% of Vietnam.¹⁴ This market share is impressive as Vietnam’s export economy was previously focused on agriculture and textiles.¹⁵

For many, the shift from simple to high-tech products speaks to Vietnam’s ability as a manufacturing hub in the global market. It shows sophistication and industrial evolution.

4. Shoes

Shoes and footwear account for 7% of Vietnam’s shipments.¹⁶ This includes cloth footwear, rubber footwear, waterproof footwear, shoe parts, etc.¹⁷

Footwear is a great export industry to enter as the demand for shoes often fluctuates with fashion trends. As new styles become popular and trendy, new waves of demand quickly emerge, creating opportunities for manufacturers to meet these needs. This is especially noticeable in fast fashion trends.

5. Machinery

Machinery is another major export of Vietnam, accounting for 6% of shipped goods.¹⁸ This includes broadcasting equipment, circuit boards, microphones, headphones, office equipment parts, etc.¹⁹

In the same sector as machinery, Vietnam’s automobile export industry is emerging. The country is expected to sell 800,000 cars by 2025 and 1.85 million cars by 2035.²⁰

6. Pharmaceuticals

Vietnam’s pharmaceutical industry is expected to more than double by 2026. Last year, the industry was valued at $7.7 billion, and in just five years he is expected to grow to $16.1 billion.^{twenty one}

The explosive development of this industry is relatively new to Vietnam, so the infrastructure to serve many global buyers is still lacking. However, with other industries developing rapidly in the country, Vietnamese exporters would be wise to consider pharmaceuticals as a future option.^{twenty two}

This may be an opportunity starting in 2023 or later, but it is worth considering for those wishing to stay at the forefront of Vietnam’s export growth.

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