Vietnam has established itself as a key player in global trade, thanks to its strategic location, favourable trade agreements, and robust manufacturing sector. In 2024, Vietnam continues to leverage its open economy, with exports playing a crucial role in driving growth. The country is well-integrated into the global supply chain, exporting a diverse range of goods including electronics, textiles, machinery, and agricultural products.

Of note, Vietnam’s participation in major trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP) has provided preferential access to key global markets, boosting its trade volumes.

Despite the strong growth, Vietnam faces challenges in balancing trade with environmental sustainability and managing global economic uncertainties. The country’s dependence on external markets means that fluctuations in global demand can impact trade performance.

Vietnam’s exports

Vietnam’s exports have become a cornerstone of the country’s economic growth, driven by its integration into global supply chains and a competitive manufacturing sector. The country’s exports span a wide range of products, with key sectors including electronics, textiles, footwear, machinery, and agricultural products playing major roles in its export portfolio.

In 2023, Vietnam’s total export value reached US$354.67 billion, highlighting the importance of exports in maintaining economic stability. The electronics sector, led by companies such as Samsung, remains the largest contributor to exports, with items such as mobile phones, computers, and electronic components dominating. In addition, textiles and garments remain significant exports, benefiting from Vietnam’s competitive labour market and strong international demand. Agricultural exports, including rice, coffee, and seafood, also play an essential role, with Vietnam being one of the top global exporters in these categories.

However, despite the substantial volume of exports, Vietnam has faced challenges in 2023, with external factors such as global economic slowdown, inflation, and supply chain disruptions affecting performance. While Vietnam continues to be an important export hub, the need for diversification in export products and markets, as well as investments in higher-value industries, will be critical to sustaining long-term export growth and resilience.

Key exports

Vietnam exports a range of goods from all different industries. Some of its biggest exports are:

Electronics

Mobile phones, computers, and electronic components (key sectors, driven by companies like Samsung). Vietnam has become one of the largest exporters of mobile phones globally.

Textiles and garments

Clothing and fabrics, benefiting from Vietnam’s competitive labour market. The country is a key supplier to major global fashion brands.

Footwear

Vietnam is a major global producer of shoes and leather goods.

Agricultural products

Key exports include rice, coffee, rubber, tea, and cashews. Vietnam is the second-largest exporter of coffee globally, after Brazil.

Seafood

Vietnam is a leading exporter of seafood, particularly shrimp, fish (pangasius), and other aquatic products. The country’s seafood exports are a vital part of its economy, supplying markets in Europe, the US, and Japan.

Furniture

Wooden furniture and home decor products have become increasingly important exports. Vietnam is now one of the largest exporters of wood products in Asia.

Vietnam’s imports

Vietnam’s imports play a critical role in supporting its rapidly growing economy, particularly its export-driven manufacturing sector. The country relies heavily on imports of raw materials, machinery, and components to fuel its production of goods for both domestic consumption and export. Key imports include electronics, machinery, chemicals, petroleum products, and textiles. These imported goods are essential for Vietnam’s industrial base, especially in sectors such as electronics manufacturing, textiles, and heavy industry.

In 2023, Vietnam’s total import value reached US$326.37 billion, reflecting the country’s dependence on international supply chains. A large portion of these imports comes from countries such as China, South Korea, and Japan, which supply the bulk of the machinery, raw materials, and components needed for Vietnam’s manufacturing sector. Electronics, in particular, is a major category, with significant imports of parts used in the assembly of mobile phones, computers, and other high-tech devices.

Despite the substantial import volume, 2023 presented some challenges for Vietnam, including global supply chain disruptions and fluctuating global demand, which impacted the flow of goods. Rising energy prices and inflationary pressures also affected the cost of key imports like petroleum.

Key imports

Electronics components

Parts and components for assembling mobile phones, computers, and other electronic devices. These are essential for Vietnam’s electronics manufacturing sector.

Machinery and equipment

Industrial machinery, construction equipment, and production tools. These imports support Vietnam’s rapidly expanding manufacturing and construction industries.

Fabrics and textiles

Raw materials for garment production. Vietnam’s textile industry relies heavily on fabric imports, particularly from China and South Korea.

Petroleum and refined oil products

Fuel and oil for domestic consumption and industrial use. Vietnam imports significant volumes of oil to meet energy demands.

Chemicals

Various chemicals for industrial production, agriculture, and pharmaceuticals. These imports are vital for Vietnam’s manufacturing and agricultural sectors.

Plastics and plastic products

Raw plastic materials used in manufacturing. Vietnam imports plastic resins and materials to supply its growing plastics industry.

Metals and steel

Iron, steel, and other metals for construction and manufacturing. These materials are critical for infrastructure projects and industrial use.

Automotive parts and vehicles

Imported cars, motorbikes, and parts. Vietnam imports vehicles and parts to meet domestic demand and for assembly in local factories.

See also: Vietnam’s Automotive Industry

Pharmaceutical products

Medicines and medical supplies. Vietnam imports a wide range of pharmaceuticals to meet healthcare needs.

Vietnam’s free trade agreements

Vietnam’s participation in multiple free trade agreements, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, Regional Comprehensive Economic Partnership, and the European Union-Vietnam Free Trade Agreement, has significantly boosted its access to global markets. These agreements, along with bilateral deals like the Vietnam-Korea Free Trade Agreement and Vietnam-Japan Economic Partnership Agreement, eliminate tariffs and enhance trade across sectors like electronics, textiles, and agriculture.

By fostering stronger trade ties with key partners in Asia, Europe, and beyond, Vietnam has positioned itself as a major player in global supply chains and increased its competitiveness in international markets.

Key Vietnam trade bodies

Vietnam’s key trade bodies play a crucial role in regulating, promoting, and supporting the country’s trade activities. These organisations are central to developing trade policies, facilitating international trade agreements, and providing support to businesses involved in exports and imports. Some of the key trade bodies in Vietnam include:

Ministry of Industry and Trade (MOIT)

This government body oversees national trade policies, manages import-export regulations, and facilitates international trade agreements. MOIT is responsible for promoting Vietnam’s trade interests globally and ensuring compliance with international trade standards.

Vietnam Chamber of Commerce and Industry (VCCI)

VCCI represents the business community and plays a vital role in promoting trade and investment. It provides information, training, and consultancy services to businesses and acts as a bridge between the government and private enterprises. VCCI also plays an active role in policy advocacy for trade development.

Vietnam Trade Promotion Agency (VIETRADE)

Operating under MOIT, VIETRADE is dedicated to promoting Vietnam’s exports and trade relations globally. It organises trade fairs, business delegations, and offers support for businesses to explore international markets.

General Department of Vietnam Customs

This body regulates and controls the flow of goods in and out of the country. It ensures that Vietnam’s customs policies align with international standards and provides essential data and support for the trade sector.

Export Processing and Industrial Zones Authority (EPZ/IZ)

This agency is responsible for managing Vietnam’s export processing and industrial zones, which are critical hubs for foreign investment and trade. These zones attract significant FDI and are key to the country’s manufacturing and export activities.

These trade bodies work collaboratively to strengthen Vietnam’s trade capabilities, facilitate investment, and promote the country’s integration into the global economy.

Trade logistics in Vietnam

Vietnam’s logistics sector plays a crucial role in supporting the country’s import and export activities, especially given its growing integration into global trade. As Vietnam has developed into a manufacturing hub and key exporter in Southeast Asia, the logistics infrastructure has been expanding to meet the needs of its robust trade volume. The country’s logistics industry encompasses transportation, warehousing, freight forwarding, and supply chain management services, all of which are vital for efficiently moving goods across borders.

What’s next?

The future of Vietnam’s trade outlook remains promising, driven by the country’s strong integration into global supply chains and participation in multiple free trade agreements. Vietnam is expected to continue benefiting from its competitive manufacturing sectors, particularly in electronics, textiles, and agriculture. Ongoing improvements in infrastructure and logistics will likely support trade efficiency, while digital transformation may enhance the competitiveness of various industries.

However, Vietnam’s trade future will also depend on navigating global challenges such as economic slowdowns, geopolitical tensions, and supply chain disruptions. Diversifying export markets, reducing dependence on key partners, and managing environmental and sustainability concerns will be crucial to ensuring steady trade growth. With the right policies in place, Vietnam has the potential to further solidify its role as a significant player in international trade.

That said, Vietnam’s trade environment is dynamic and prone to change quickly. With this in mind, foreign firms conducting import-export business in Vietnam should make sure to keep up with the latest trade developments by subscribing to the-shiv.

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