According to the Dau tu (Investment) Newspaper, the FDI (Foreign Direct Investment) retained its role as an export pillar of Vietnam’s economy during the first two months. Its revenue increased by 14.7% to reach $43.2 billion, accounting for 72.8% of the country’s total export value.

FDI situation in 2M of the year

Key export sectors such as phones, computers, machinery, equipment, garments, and textiles experienced strong growth, with increases ranging from 4.1% to 33.9%. This growth led to an 18% year-on-year rise in imports of materials for production, driven by electronic products, garments, textiles, and footwear.

Vietnam achieved a trade surplus of $4.72 billion, with the FDI sector (including crude oil) contributing a trade surplus of $8.25 billion.

Vietnam’s main export market

The US imported $17.4 billion worth of goods from Vietnam, a year-on-year increase of 33.7%. Vietnam’s trade surplus with the US stood at $15.2 billion, up 36.3% compared to the same period last year.

The most popular exported items to the US were computers, phones, electronics and components, machinery, equipment and spare parts, garments and textiles, and footwear.

According to Trade Counsellor and Head of the Vietnam Trade Office in the US, Do Ngoc Hung: “If fully tapped, the US market can bring an export revenue of over 100 billion USD to Vietnam by 2025.”

However, there have been trade barriers set up by the US to protect domestic production. To navigate these challenges, Hung advised Vietnamese management agencies, businesses, and localities to stay updated about changes in US politics and policies to respond promptly.

In January and February, Vietnam’s exports to the EU increased by 14.2% year-on-year, reaching $7.7 billion, which is expected to continue in the time ahead thanks to the EUVFTA (EU-Vietnam Free Trade Agreement).

Two-way trade relationship between Vietnam and the EU has experienced double-digit growth since the EUVFTA took effect in August 2020, as compared with a 5% to 7% rise in Vietnam’s exports to the EU and a 3% to 5% increase in imports during the previous period.

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