Businesses full of orders, creating driver for stronger export growth

After a period of downturn, many of Vietnam's main export products, such as textiles and footwear, have shown strong recovery, achieving double-digit growth rates.

The working atmosphere in several subsidiaries of the Vietnam National Textile and Garment Group (Vinatex) is bustling, as both workers and machines seem to be racing against the clock to complete orders.

Vinatex General Director Cao Huu Hieu stated that Vietnam’s textile exports saw a recovery in the first nine months of 2024 due to a shift in orders from China, Bangladesh, and Myanmar to Vietnam.

Inventory levels in key markets like the US, Europe, and Japan have been gradually decreasing compared to the same period last year, while the purchasing power is trending upwards, contributing to driving a recovery in order placements from partners, he noted.

Vietnam's textile and garment exports are projected to hit 44 billion USD in 2024, Hieu said, adding that Vinatex is likely to fulfill its production and business goals.

In October, Hoa Phat Refrigeration Company of Hoa Phat Group successfully exported its new-generation Double Inverter two-door top-freezer refrigerators, with a capacity of 286 liters, to the US. The product meets stringent standards, opening up a great opportunity for Hoa Phat to assert its position and competitiveness, and tap into the potential of this high-demand market in the future.

According to Assoc. Prof. Dr. Dinh Trong Thinh, former Director of the Faculty of International Finance at the Academy of Finance, the strong increase in export orders is due to a recovery in demand after a sharp decline last year. This recovery has provided a significant boost to import activities to rebound.

Vietnam’s import and export turnover is expected to hit a record of 800 billion USD in 2024, surpassing the record of 732 billion USD in 2022, Thinh said.

Statistics from the Ministry of Industry and Trade (MoIT) showed that as of October 15, the export earnings of computers and electronic components, phones and components, machinery and tools, and textiles hit 55.2 billion USD, 43.94 billion USD, 40.16 billion USD, and 28.85 billion USD, respectively. The total import-export turnover of the country reached 610.56 billion USD, up 16.4% or 85.82 billion USD compared to the same period last year.

Talking to Lao Dong Newspaper, Director of the MoIT's Department of Planning and Finance Bui Huy Son said there is still room for growth in exports at the end of the year, adding that the demand for consumption in major markets such as the US and the European Union will be a key driver to boost exports, especially in electronics, consumer goods, and textiles, as global retailers increase inventory for major holiday seasons.

Hieu underlined the need for businesses to clearly identify and promptly address their difficulties and disadvantages, especially the shortage of labourers, thus enabling them to meet export orders in the remaining months of 2024.

In the remaining months of the year, the export of agricultural and processed – manufacturing products is forecast to continue maintaining strong growth, particularly to the US and EU markets, as inflation signs decrease and purchasing power begins to rise again, according to Tran Thanh Hai, Deputy Director of the MoIT’s Agency of Foreign Trade.