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ECONOMY - POLICY

A WORLD OF WOE

Vietnam’s export and import performance in 2023 was hampered by
uncertainties around the globe, though recovery was evident by year’s end.
By VU KHUE

ow in its eighth year of publication, reliant upon exports but buffeted by shrink- billion in import value, down 9.2 per cent.
the Vietnam Import - Export Report ing global demand. As efforts in integrating Vietnam still posted a trade surplus of
N from the Ministry of Industry and Vietnam’s open economy deepen, substan- $28.3 billion as exports and imports both
Trade touches on a range of matters, such tial benefits will be reaped during favorable dipped. The report highlights the positive
as product origin; the execution of the EU- global market conditions but vulnerabilities aspects amid the ongoing global economic
Vietnam Free Trade Agreement (EUVFTA), very much make their presence felt amid slowdown, with exports showing signs of
the UK-Vietnam Free Trade Agreement any fluctuations. recovery in the latter part of the year.
(UKVFTA), the Comprehensive and Pro- Exports displayed clear signs of recovery
gressive Agreement for Trans-Pacific Part- Rejuvenated over the course of 2023. Though down
nership (CPTPP), and the Regional Com- exports 11.8 per cent year-on-year as of the end of
prehensive Economic Partnership (RCEP); Vietnam faced challenges last year in the first quarter, improvements emerged
negotiations, signings, and enhancements falling supplies of raw materials and lower from the beginning of the second quarter
of other free trade agreements (FTAs); and consumer demand. Preliminary figures onwards. Each subsequent month saw
advancements in trade promotion and indicate $354.7 billion in export value, higher export volumes, with May’s figure
export-import operations. down 4.6 per cent against 2022, and $326.4 rising 0.6 per cent against April, June 5
The latest version delineates the land-
scape in 2023, which proved to be a chal-
lenging time for Vietnam’s economy after
impacts were experienced from both inter-
nal and external factors. With its notably Top 5 localities with highest year-on-year export growth in 2023
open economy, Vietnam felt repercussions
from global economic slowdowns, market
volatility, and policy adjustments in major
economies, particularly regarding interest
rates and exchange rates. Key drivers of
Vietnam’s growth, such as investment, Lang Son Ha Giang Ha Tinh Cao Bang Ha Nam
exports, and domestic consumption, 107% 65.8% 49.7% 42.7% 35.8%
encountered numerous hurdles.
Export challenges persisted, including
uncertain markets, inadequate orders,
soaring fuel prices, and rising production Top 5 localities with sharpest year-on-year decline in export growth in 2023
costs. Heightened competition and esca-
lating technical barriers in export markets
also impacted production, employment,
and the livelihoods of workers. Dien Bien Ca Mau Lai Chau Thua Thien Hue Bac Lieu
The report underscores that these obsta- 47.4% 29% 22.6% 18.8% 15.8%
cles in foreign trade were not exclusive to
Vietnam but were common in all economies Source: Vietnam Import - Export Report 2023

6 Vietnam Economic Times May 27, 2024 en.vneconomy.vn