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Vietnam becomes second-largest exporter to US market

 

Date: 2021-01-04

News Type: Marketing News

 

Vietnam becomes second-largest exporter to US market

Diversifying export products
In the past 25 years, since the two countries established diplomatic relations in 1995, the US data shows that two-way trade turnover has increased from US$450 million to $75.7 billion at the end of 2019. From the beginning of this year, despite the negative impacts of the Covid-19 pandemic, Vietnam's export turnover to the US is estimated at approximately $80 billion.

The US has remained the largest export market of Vietnam for many years and will maintain its position in the coming time, making a significant contribution to market expansion for production development and increasing foreign currency revenues. However, according to analysts, at present, the structure of export products has also changed significantly. Besides the commodity groups with traditional strengths, such as textiles, footwear, and seafood, the groups of manufactured goods, including electronic products, components, and wooden products, have also risen to the top place.

Enhancing internal forces to increase competitiveness
According to statistics of the US International Trade Commission, Vietnam's exports merely account for 2.7 percent of the US total import value of more than $3 trillion from all countries and territories. It shows that the market space for Vietnamese exporters remains extremely large.

In the opposite direction, many enterprises said that along with opportunities to increase export market share in the US market, they also face several challenges and difficulties. Mr. Vu Duc Giang, Chairman of Vietnam Textile and Apparel Association, assessed that the US had always been the largest import market globally and would continue to hold the leading position for many more years. However, this attractive market is also the most competitive one. Vietnamese enterprises will have to compete with competitors from all over the world. Moreover, in this market, the demand changes rapidly. There are always new and higher requirements that require quick adaptation from the suppliers.

Besides, enterprises also have to face changes in trade management measures and policies, especially trade remedies. It is a big challenge for foreign exporters, including Vietnam, especially those that have not collected enough necessary information, resources, and experience to join and withstand the competitive pressures in this fastidious market.

According to Mr. Do Thang Hai, the export opportunities of Vietnam in the coming time will continue to belong to the group of textiles, footwear, seafood, electronics, components, and wooden furniture. For mechanical and manufactured products, they will also have the opportunity to gradually participate in the market, thanks to the increasing production capacity of Vietnamese enterprises. Therefore, Vietnamese enterprises need to actively research and import from the US high-tech machinery and equipment for production and export. Using technology and raw materials imported from the US for the production and export to the US, along with building a closed supply chain, will be the fastest, most reliable, and fruitful move for enterprises.

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