Impressive Export Growth of Vietnam to the EU in 2024!
Ho Chi Minh City — On Monday, the European-American Market Department of the Ministry of Industry and Trade (MoIT) organized a forum in HCM City to explore opportunities arising from the Vietnam-EU Free Trade Agreement (EVFTA) and the evolving logistics industry, aimed at enhancing Vietnam's exports to the European Union (EU) market.
Ms. Nguyen Thao Hien, Vice General Director of the Department, delivered the opening remarks.
A highlight of the forum
Significant milestones and figures
Nguyen Thao Hien, Vice General Director of the Department, highlighted that 2024 marks the fourth year since the EVFTA came into effect.
In the first eight months of 2024 alone, bilateral trade between Vietnam and the EU surged to nearly US$45 billion, reflecting a 15.8 percent increase year-on-year.
Việt Nam's exports to the EU reached $34.1 billion, marking a 17.4 percent rise compared to the same period last year.
These figures underscore the economic recovery in the EU and the agility of Vietnamese businesses in capitalizing on the opportunities presented by the EVFTA.
Challenges in the market
Despite these positive trends, Hiền pointed out that import-export activities between Vietnam and the EU face numerous challenges. These include market unpredictability, the fragile recovery of consumer demand in the EU, and ongoing political and military conflicts in various regions. Furthermore, export markets, especially the EU, are increasingly demanding sustainable practices throughout the value chain, including production and transportation.
Contributions from the logistics sector
Logistics sector's role
Hien emphasized that the success in export growth is also attributed to the significant contributions from Vietnam's logistics sector and its partners. To enhance export efficiency, Vietnam's logistics sector must continue to improve its infrastructure and operational capacity while minimizing costs to stay competitive.
Logistics industry insights
Chandler So, CEO of GEODIS Vietnam, noted that Vietnam's involvement in multiple FTAs, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EVFTA, has been instrumental in driving production growth for exports. Trade wars and the COVID-19 pandemic have compelled manufacturers to diversify their transportation networks, contributing to Vietnam's emergence as a leading manufacturing hub in ASEAN.
Carlos Zepeda, a senior maritime economist, stated that production growth and the corresponding demand for raw materials have fueled Vietnam's maritime trade over the past two decades. Regional value chain linkages and low labor costs have made Vietnam an attractive export base for multinational companies. This foundation supports the development of Vietnam's logistics sector to meet the growing demand for export cargo transportation.
Mr. Chandler So, CEO of GEODIS Vietnam, shared information on Vietnam-EU relations at the forum.
Future Projections and Recommendations
Vietnam's trade relations with the EU
Carlos Zepeda observed that Vietnam is becoming a major supplier of consumer goods and fashion to Europe. Additionally, the country has positioned itself as a key supplier of other value-added products, ranking as the third-largest high-tech goods supplier to Europe after China and the US. It is projected that the volume of container trade between Vietnam and Europe could double by 2050.
The guests participated in discussions at the forum
Infrastructure improvements and regulatory considerations
Zepeda suggested that Vietnam should focus on improving infrastructure by integrating large-scale ports with industrial zones and clusters to maximize efficiency and reduce logistics costs.
Trần Ngọc Quân, Vietnamese Trade Counselor in the EU and Belgium, added that Vietnamese export firms should pay close attention to the EU's Carbon Border Adjustment Mechanism (CBAM) and emissions control requirements in maritime transport, as these could potentially increase international logistics costs.
Conclusion
Vietnam is the EU's 16th largest trading partner, the 3rd largest exporter, and the 5th largest importer in Europe. The forum underscored the importance of continued efforts to improve logistics infrastructure and adapt to evolving market demands to sustain and enhance Vietnam's export growth to the EU. Stay tuned to the website PCS for the latest updates on the logistics industry!