Viet Nam’s exports maintain growth momentum, new record set in August

As Viet Nam’s key export markets show signs of robust recovery, the nation’s exports in August reached an all-time high of US$37.59 billion compared to US$36.24 billion of the previous month. 

Export is a direct motivation with the largest impact on Viet Nam's economic growth now. The improved purchasing power in developed countries has had a noticeable impact on Viet Nam's economy. Exports to the U.S., the European Union (EU), South Korea, and Japan have all bounced back over the recent months of this year.

Official statistics showed that trade between the Southeast Asian nation and the rest of the world were estimated at US$70.11 billion in July and US$70.65 billion in August.

If the current growth momentum is maintained, this year's import and export value will set a new record, surpassing the US$732 billion mark recorded in 2022. It should be noted that 2022 is a record year for Viet Nam's foreign trade, but no month saw import-export turnover reaching US$70 billion.

During January-August, the total export value witnessed a year-on-year increase of 15.8 percent, achieving US$265 billion.

Continuing the positive trend in recent months, the nation's import value hit US$246 billion in eight months, up 17.7 percent. Remarkably, Viet Nam spent US$230.95 billion on importing production materials, making up 93.9 percent. In the reviewed period, the country's trade surplus reached US$19.07 billion.

Insiders said that with positive economic forecasts from developed markets and increasing imports from the U.S., Viet Nam's exports are expected to exceed US$790 billion by the end of this year.

Regarding the structure of exported goods, agricultural products and minerals accounted for only 12 percent while the group of industrial goods made up over 88 percent, said Le Quoc Phuong, deputy head of Viet Nam Industry and Trade Information Center, under the Ministry of Industry and Trade.

The increase in exports is mainly attributed to the rise in exports of industrial goods, reflecting the goals set by import-export strategies and plans, he shared.

According to the latest report released by the S&P Global, Viet Nam Manufacturing Purchasing Managers' Index (PMI) stood at 52.4 in August, signaling a solid monthly improvement in terms of business conditions midway through the third quarter.

The improvement recorded in the health of the sector reflects further rapid increases in output and new orders, with respective rates of expansion remaining sharp despite easing from the particularly elevated rates seen in June and July.

Improvements seen in customer demand resulted in growth of new orders, prompting firms to expand production. In some cases, the relative stability of prices helped firms to secure new business, while there were also mentions of improving international demand, and new export orders rose for the fifth month running.

Manufacturers remain optimistic that output will increase over the coming year, based on expectations of further improvements in customer demand and new orders, the S&P Global noted.

According to the World Bank, Viet Nam's goods and services export value is equivalent to 94 percent of its GDP, ranking 14th globally.