How important are the EU and the US markets for Vietnam's exports?

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Share of US and EU in Vietnam's export structure in 2019. Chart: T. Binh.

United States market

The information that partners from the US and EU temporarily stopped importing textiles and many key products from Vietnam due to the Covid-19 epidemic is attracting great attention of the public, especially the import-export business community.

This is understandable as these are Vietnam's largest trading partners, the destination for goods of tens of thousands of businesses with millions of local workers.

First of all, for the US, for many years, the world's largest economy was also Vietnam's largest export market.

Data fromthe General Department of Customs shows that, in 2019, exports to the US market alone reached US$61.35 billion, up 29.1% compared to 2018 and accounting for 23.2% of the country's total export turnover in the last year.

The largest export groups of Vietnam, such as textiles, phones, computers, footwear, and furniture all have a presence in the US.

Especially, for many years, the US market has an overwhelming market share with the group of textile and apparel exports.

For example, in 2019, textile exports to the US reached US$14.85 billion, up 8.4% compared to 2018 and accounting for 45.2% of the country's textile and apparel export turnover.

In the first months of 2020, in the context of the Covid-19 epidemic raging around the world, the US remained the largest market, helping Vietnam's export turnover witness good growth.

Specifically, the update of the General Department of Customs in the first two months, particularly the US market reached US$10.262 billion, accounting for 26.3% of the country's total export turnover.

These results continue to help the world’s largest economy be Vietnam's largest export market. This is also the first market with an export turnover of US$10 billion or more, among more than 200 countries and territories having foreign trade relations with Vietnam.

Compared to the same period last year, export turnover to the US market also increased sharply to 25.7%, equivalent to an increase of nearly US$2.1 billion.

Especially, the additional turnover in this market alone accounts for about 70% of the additional turnover and tripled the country's export growth in the first two months of the year (the whole country increased by about 3% compared to the same period in 2019 with about US$3billion).

Over the first two months of the year, there have been three groups of goods exported to the US market with a turnover of US$1 billion or more, including: textiles; computers, electronic products and components; phones and components.

In particular, textiles reached nearly US$2.25 billion and is the largest export group of Vietnam to the US.This is also the largest export market of the textile and apparel group.

Phones and accessories reached US$1,863 billion; computers, electronic products and components reached more than US$1.2 billion.

In terms of turnover and growth, computers, electronic products and components had the most impressive breakthrough with a growth rate of 34.5%, equivalent to an additional turnover of nearly US$700 million.

In addition to the three "billion-dollar" commodity groups mentioned above, at the end of February, there were many groups of goods exported to the US with a turnover of hundreds of millions of USD.

Many "billion dollar" markets in the EU

Along with the US, the EU is also a leading export partner in Vietnam.

In 2019, the total import-export turnover between Vietnam and the EU members (28 countries, the time before the UK left the bloc) reached US$56.39 billion, accounting for nearly 11% of the total import-export turnover of the whole country in the last year.

In particular, exports to the EU reached US$41.48 billion, down 1% compared to 2018 but still accounting for 15.7% of the country's total export turnover. While Vietnam's import is US$14.91 billion, up 7.4%, accounting for 5.9% of the country's turnover.

Thus, in trade relations with the EU, our country recordeda remarkable trade surplus of US$26.57 billion last year.

Data from the General Department of Customs show that the markets of Vietnam's largest export groups have the presence of EU members.

Typically, the largest commodity group is phones and components with a turnover of US$12.36 billion, down 7.1% compared to 2018 but the EU still accounting for 24% of export turnover of this group.

The group of computers, electronic products and components reached US$5.06 billion, also helping the EU to be among the largest export markets.

In addition, a series of major export groups of Vietnam are maintaining billions of dollars in revenue last year in the EU such as: textiles; footwear; agricultural; machinery, equipment, tools and spare parts.

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Within the EU, Germany is Vietnam's largest trading partner and also the largest export market in Europe in general.

By the end of February, Germany was the first export market of Vietnam in the EU and the whole Europe with a turnover of US$1 billion. While the export turnover in 2019 is US$6.555 billion, helping Vietnam record a trade surplus of nearly US$3 billion.