Why do six exported commodity groups of tens of billion USD fluctuate?

The turnover of 6 key export commodity groups, calculation unit "billion USD". Sketched by T.Bình

Computer usurps textiles

Phones and accessories; computers, electronic products and components; textile; footwear; machines and equipment; timber and wooden products are the six largest export commodity groups of Vietnam with turnover of $10 billion or more (according to statistics of the General Department of Vietnam Customs from the beginning of 2019 until December 15, 2019).

In 2019, all six commodity groups increased by $1 billion compared to a year prior.

Furthermore, computers, electronic products and components had the most impressive growth with turnover of $34.01 billion, up by $5.67 billion over the same period in 2018, equivalent to growth of 20 percent.

The high growth in 2019 helped this product take over textiles to become Vietnam’s second largest export group.

Although maintaining its position as Vietnam's largest export group, phones and accessories have not increased as much as in previous years.

By December 15, 2019, total turnover of this commodity group reached $49.91 billion, increasing by $2.02 billion, and equivalent to 4.2 percent.

In the same situation of achieving positive growth but at a low level was textiles with turnover of $31.1 billion, increasing by $2.13 billion, equal to 7.3 percent. Even textiles were taken over by computers, electronic products and components in terms of export, the low growth rate also made the textile sector in general unable to meet the milestone of$40 billion in 2019.

The remaining two commodity groups also reached turnover of $17.33 billion, with the added value of the footwear group $1.91 billion, while machinery and equipment increased by $1.68 billion.

Notably, as of December 15, 2019, Vietnam had one more group reaching export turnover of $10 billion, which was wood and products increasing $1.55 billion compared to the same period in 2018 (reaching $8.45 billion).

With an increase of $14.96 billion in turnover, the six commodity groups accounted for 82.3 percent of total increase of export turnover of the whole country in the same period (the country increased by $18.17 billion).

United States dominant

In terms of markets, the United States (US), the European Union (EU), China, and South Korea were the most dominant markets for exporting key products as well as export turnover of Vietnam in general.

By the end of November 2019 export turnover of phones and components to the EU reached $11.82 billion, decreasing by 7.1 percent; the US reached $8.45 billion, increasing by 62.5 percent; Chinese market reached $7.36 billion, decreasing by 12.4 percent; South Korea reached $4.89 billion, increasing by 17.6 percent compared to the same period in 2018.

Meanwhile exporting computers, electronic products and components to China reached $8.47 billion, increasing by 10.5 percent; the US reached $5.37 billion, up sharply by 103.4 percent; EU reached $4.68 billion, decreasing by 8.6 percent; Hong Kong reached $2.72 billion, increasing by 30.8 percent; South Korea reached $2.66 billion, increasing by 15.6 percent.

For textiles, the US was still the largest export market with value of $13.46 billion, up by 8.1 percent over the same period last year and accounting for 45 percent of total export turnover of textiles.

Other major markets such as the EU reached $3.94 billion, increasing by 4.2 percent; Japan reached $3.62 billion, increasing by 4.1 percent; South Korea reached $3.12 billion, increasing by 2.3 percent; and China reached $1.46 billion, increasing by 5 percent.

Meanwhile, the US and the EU were still the two largest footwear export markets of Vietnam with turnover and growth rate of $5.96 billion (increasing by 13.3 percent) and $4.59 billion (increasing by 8.1 percent) respectively. Generally, these two markets reached $10.55 billion, 63.8 percent of the country's total export turnover of footwear.

The export markets of machines, equipment and tools are mainly included: the US with $4.53 billion, increasing by 47.2 percent; EU reached the value of $2.45 billion, increasing by 21.8 percent; Japan with $1.76 billion, increasing by 4 percent; South Korea with $1.46, increasing by 29.9 percent.

With the new group of timber and wood products, the US market also led the market with a value of $4.73 billion, increasing by 35.3 percent over the same period last year. It was followed by Japan with $1.21 billion, increasing by 15.7 percent; China with $ 1.05 billion, increasing by 4.6 percent.