The prospect of bilateral trade with the US continues to surpass the US$ 100 billion mark

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Vietnam's honey exports to the US market. Photo: Internet

13 export commodity groups reached over US$ 1 billion

The report of the Vietnam Trade Office in the United States showed that the total export turnover of Vietnam's goods to the United States reached US$ 109.38 billion in 2022, which was the first export market to reach the US$ 100 billion mark, an increase of 13.6%, accounting for 29.5% of total export turnover of Vietnam.

Imports from the United States in the 12 months of 2022 reached 14.47 billion USD, down 5.2%, bringing the total two-way trade turnover between Vietnam and the United States to US$ 123.86 billion in 2022, up 11% and the trade balance achieved a surplus of US$ 94.91 billion, up 17% compared to 2021.

In which, five of 37 groups of goods with reduced export value included cashew nuts, chemical products, rubber, bamboo, rattan and carpets, iron and steel in all kinds.

However, there were 13 groups of export goods reaching over US$ 1 billion (four groups were over US$ 10 billion, of which, two groups of exports reached US$ 20 billion, including textiles, machinery, equipment, tools and other spare parts). 10 commodity groups with significant growth of over 30% included rice; confectionery and cereal products; foodstuff and raw materials; bags, suitcases, wallets, hats, umbrellas; textile fibres of all kinds; footwear; phones in all kinds and accessories; camcorders and accessories; sports equipment toys and parts.

Notably, in 2022, Vietnam added pomelos to the list of fresh fruits exported to the US, as well as exported the first batch of electric cars produced by Vinfast to the US market.

According to the Vietnam Trade Office in the United States, the above results showed that the link among the two economies was becoming increasingly connected, contributing to the overall growth in bilateral trade as well as promoting the growth of the two economies, global supply chain resilience and general prosperity of the two countries.

According to the Vietnam Trade Office in the United States, the United States was not an easy export market with many complicated and strict regulations and procedures, however, Vietnam was currently the 7th largest trading partner of the United States and the United States was Vietnam's second-largest trading partner and largest export market.

Lots of export potentials

According to the analysis of the Vietnam Trade Office in the United States, the export potential to the US market had many advantages. Because this was a potential market with more than 300 million consumers. Vietnam's export goods only accounted for about 4% of the total import turnover.

Moreover, this was a market with many ethnicities, diverse needs and usage levels; consumption habits in the direction of saving, safety, and environmental friendliness, thereby they liked products from developing countries, including Vietnam.

Vietnam exported input materials, raw materials, and essential and complementary goods to the US market, so it was not significantly affected by difficult factors of the market, this was favourable but was also a disadvantage because it had not brought high added value.

In addition, the supportive policies of the Government, ministries, sectors and localities for export enterprises in the direction of sustainable growth and trade balance with the United States as well as the comprehensive partnership were the strengthening of economic cooperation between the two countries in the current period and in the future.

Besides favourable factors, exporting to the US market also faced many difficulties. For example, the monetary and fiscal policy of the United States, high inflation, high logistics transportation costs, and complicated federal and state government regulations, especially food quarantine and safety issues, and labour standards.

Moreover, the US's import demand and year-end inventory have not improved, and many large contracts with partners were only paid after full delivery.

Vietnam's exports still faced competition from other countries for key export items such as agricultural and aquatic products, textiles, and footwear, while production capacity in some industries was difficult to get high growth. Vietnamese enterprises had to face trade barriers, technical barriers, food hygiene and safety standards.

The obstacles were rather a lot, but with the results of two-way trade between Vietnam and the US had many achievements, the Vietnam Trade Office in the US said that it was completely possible to expect a turnover of two-way trade between Vietnam and the US to continue to exceed US$ 100 billion in 2023.

“Advantages and difficulties, opportunities and challenges always go together. In addition to the support of state management agencies, the synchronous coordination between enterprises and associations, localities as well as among enterprises, enterprises themselves must actively adapt, respond, improve high production capacity, compete to dominate the market,” said the Vietnam Trade Office in the US.