Vietnam’s exports surpassed Shenzhen in March

Vietnam's exports surpassed Shenzhen in March

In 2020, Vietnam was known as a “top student” for epidemic prevention. After experiencing the major setback of the Delta epidemic in 2021, it seems to have “resurrected with blood” today.

Since the end of last year, Vietnam’s economy has gradually recovered from the haze of the epidemic, especially export trade.

According to the latest data released by the General Administration of Vietnam Customs, the total import and export volume of Vietnam in March reached a record 67.37 billion US dollars, a month-on-month increase of 38.1%; the export value was 34.71 billion US dollars, a month-on-month increase of 48.2%. Of course, this has the influence of the Vietnamese Spring Festival in February. From the perspective of the entire first quarter, Vietnam’s total import and export of goods in the first quarter was 176.35 billion US dollars, a year-on-year increase of 14.4%.

In addition, the category of “Made in Vietnam” is also constantly being upgraded. In the first quarter of this year, Vietnam’s exports of mobile phones and their parts have reached nearly 15 billion US dollars. The rapid growth of Vietnam’s electronic product exports has caused some anxiety and a sense of crisis in related domestic industries.

With the increase in vaccination rates and the normalization of the epidemic, Vietnam’s economy has stabilized and recovered since the fourth quarter of last year. In this year, the export industry will continue to be the main engine of Vietnam’s economic growth.

In terms of the electronics industry, in addition to international brands such as Samsung, Intel, and LG that have already established their presence in Vietnam, more and more electronics manufacturers have come to Vietnam after the epidemic, such as Luxshare Precision, Winston, and Shuo, Goertek, etc., built Vietnam into their production base.

In the first quarter of this year, Vietnam’s exports of mobile phones and parts, electronic products, computers and parts exceeded US$27.3 billion, which was close to the export level of the first half of last year (US$57.54 billion for the whole year).

Andrew Jeffries, chief representative of the Asian Development Bank (ADB) in Vietnam, said that amid the pandemic and global geopolitical volatility, global investment flows have declined, but foreign investment inflows into Vietnam are likely to be Growth against the trend.

According to Vietnamese media reports, at the beginning of April, Li Ka-shing’s Cheung Kong Group and Japan’s ORIX Group, through their local Vietnamese partner Wanshengfa Group, met with Pan Wenmai, mayor of Ho Chi Minh City, Vietnam, to discuss investment in Ho Chi Minh City.

The same labor-intensive textile industry also performed well. This year, the production and operation activities of Vietnamese garment enterprises continued to maintain strong growth. The chairman of the Vietnam Textile and Apparel Association said that in the first two months of this year, Vietnam exported nearly 8.2 billion US dollars worth of textile and clothing products, a year-on-year increase of 59%. In the first quarter of this year, the industry is expected to achieve an export value of around $12.7 billion.

The chairman of the Ho Chi Minh City Apparel, Textile, Embroidery and Knitting Association said that many textile and clothing companies have secured enough orders to produce until the middle of this year or even September. For example, Vietnam’s successful textile and apparel company said that the order is enough to wait until the end of the third quarter.

Companies in Vietnam’s timber industry have also received a large number of orders, and they say they may not be busy by the third quarter or even before the end of the year. Vietnam is one of the world’s largest exporters of wood products.

Standard Chartered Bank economist Tim Leelahaphan said that in recent years, many large international technology companies have moved or planned to move production activities to Vietnam to diversify their supply chains. Vietnam continues to be a regional production hub in areas such as electronics, textiles and footwear.