Việt Nam's exports to US market accelerate
Goods shipments to the US, Việt Nam’s largest market for export, have seen a strong resurgence over the recent months, with their value exceeding $10 billion in June and July.
Goods shipments to the US, Việt Nam’s largest market for export, have seen a strong resurgence over the recent months, with their value exceeding US$10 billion in June and July.
While the monthly export value in the early part of the year ranged from $8.3 billion to 8.9 billion, even dropping to about $7 billion, that in the past two consecutive months surpassed $10 billion.
Overall, the country exported a cumulative total of $66.09 worth of products to the US between January and July, an annual rise of 24.4 per cent - the highest among its importers.
In the seven-month period, American buyers spent a monthly average of close to $9.6 billion on purchasing goods from Vietnamese suppliers. Within the first half, they channeled $11.16 billion into computers, electronic products, and components; $9.19 billion into machinery, equipment, and spare parts; $7.21 billion in garment-textile; and $5.5 billion into phones and components, up 51.6 per cent, 15.8 per cent, 3.6 per cent, and 34.3 per cent, year-on-year respectively.
With the US accelerating goods purchases for the year-end festive season and the volume of their goods in stock plunging, the number of orders from US buyers is expected to grow significantly.
Vũ Vinh Phú, an economic expert, predicted Vietnamese exports to the market such as electronics, leather and footwear, garment textiles, farm produce, machinery and equipment will continue to recover in months to come.
These product categories have seen improvement in quality and competitive pricing thanks to substantial foreign direct investment in production and export activities as well as their deep integration into supply chains, making them more favoured and trusted by US importers.
If the current growth momentum is maintained, bilateral trade could reach $135 billion this year.
As Vietnamese exports accelerate, they also face numerous trade defence cases. As of June, they have encountered over 250 trade defence investigations from 24 markets. The US alone has initiated 64 investigations, accounting for 25 per cent of the total. In 2023, out of the 15 new cases initiated by foreign countries against Vietnamese exports, the US initiated the most with seven cases.
Nevertheless, trade defence is a typical aspect of international commerce. Chu Thắng Trung, Deputy Director General of the Ministry of Industry and Trade’s Trade Remedies Authority, explained that the US has extremely stringent laws on investigation and application of defence measures.
“They investigate goods from all countries, not just Việt Nam. For countries with large export volumes to the US, the frequency of trade defence cases will be higher," Trung said.
“The point is overcoming these obstacles to maintain our export markets and promote sustainable bilateral trade by complying with US regulations, enhancing product competitiveness through quality, increasing the value-added content in our products, and avoiding price-based competition, thus reducing the risk of becoming targets for trade defence investigations.”
Trade defence is a routine activity in international trade, but it poses difficulties for Vietnamese enterprises because the US does not recognise Vietnam as a market economy. This means that Vietnamese exporters face discrimination in anti-dumping and subsidy investigations since their actual production costs are not used to calculate dumping margins. Instead, “surrogate values” from a third country are used.
Therefore, in specific cases, Vietnamese businesses need to prove to US authorities that the dumping accusations are inaccurate, providing information and data on their production activities and fair competition in an equal environment, recommended a representative from the Trade Remedies Authority. — VNS
