AsemconnectVietnam - In the first four months of the year, the trade turnover between Vietnam and the United States saw a decrease in both export and import.

Also in the past 4 months, the trade exchange between Vietnam and China has also decreased, but China still maintained its position as one of the most important markets for Vietnamese goods.
Vietnam’s trade exchange with the US in the first 4 months of 2023
According to the Ministry of Industry and Trade, the United States was Vietnam's largest export market in the first four months of 2023 with an estimated turnover of 28.45 billion USD, accounting for 26% of total export turnover. However, this number has decreased by 21% over the same period last year.
Meanwhile, the import turnover of goods from the United States reached 4.08 billion USD, down by 11.9% year – on - year.
Vietnam’s exports of many products to the US market are facing difficulties. For example, with seafood, according to the Vietnam Association of Seafood Exporters and Producers (VASEP), the US market is increasingly sinking into the situation of rising food prices and decreasing consumption.
American families are fed up with the fact that food prices are so high. Now, Americans have considered cutting spending on low-value items, buying less non-essential groceries, buying bulk and unbranded products, and focusing on staple items. Some people even buy and eat less. Consumers are looking to spend only on the goods they really need.
That situation caused Vietnam's seafood exports to the US to maintain a deep drop of 51% in April, making the US fall to the 3rd position in seafood import markets, after Japan and China. In the first 4 months of 2023, seafood exports to the US were estimated at 418 million USD, down by over 57% over the same period last year.
According to the representative of the Vietnam Trade Office in the United States, many reports and analysis indicate that the US economy will be in recession in 2023, but this decline will be relatively light and short, growth will recover in 2024 when inflation continues to fall and the US Federal Reserve (Fed) begins to ease monetary policy.
In 2023, the Vietnam Trade Office in the United States forecast that it is possible to expect the two-way trade turnover between the two countries to continue to exceed the 100 billion USD mark. Therefore, businesses need to actively look for customers, maintain old ones, and take advantage of every opportunity to restore exports to this most important market.
The United States has always maintained its position as a major market of our country for many years now. Before 1995, the exports to the US were insignificant, and Vietnam was in a very low trade deficit position, because the two countries had not yet normalized their diplomatic relations.
Since 1995, after Vietnam and the United States normalized diplomatic relations, the exports to the US have reached a good level, increasing rapidly and continuously over the years and turning into a position of trade surplus. In 2001, after the Bilateral Trade Agreement was signed, the exports to the United States crossed the 1 billion USD mark for the first time. In 2008, after Vietnam joined the World Trade Organization (WTO), Vietnam's exports to the US for the first time surpassed the 11 billion USD mark and the trade surplus was quite high.
In particular, in 2022, the United States became the first export market of Vietnam to surpass 100 billion USD, reaching more than 123 billion USD, up by 11% over the same period of 2021.
Vietnam’s exports of goods to China in the first four months of 2023
According to data from the Ministry of Industry and Trade, in the first four months of 2023, export turnover from Vietnam to China reached 16.4 billion USD, down by 7.9% year – on - year. China is still Vietnam's second largest export market and the largest market for Vietnamese agricultural products.
Since China opened its border on January 8, the export of goods to this market was expected a lot, but the real figure was not as high as expected. For example, with seafood products, according to the Vietnam Association of Seafood Exporters and Producers (VASEP), pangasius exports to this market have not recovered because the average export price has decreased. Moreover, the consumption demand of this market recovered more slowly than expected. By the end of April, Vietnam's seafood exports to China were estimated at 435 million USD, down by 37%.
Opening up after the Covid-19 epidemic, China's real estate market remained quiet and industrial profits fell deeply, the economy faced constant headwinds, making the recovery ability slow and no chance of sustainability sign. China's own domestic production is also struggling because customer spending is weaker than expected.
Vietnam - China trade is expected to prosper in the coming time
China was Vietnam's largest import market with an estimated import value of 33.2 billion USD after 4 months. However, this number also decreased by 13.4% compared to the same period last year.
However, China is still the main consumption market of Vietnam with diversified products.
The Ministry of Industry and Trade forecasts that in the second quarter of 2023, Vietnam's export turnover to China will have a certain improvement. However, China is no longer an easy market as before, not all goods are accepted by the Chinese market. On the other hand, although China's economy is large, it still mainly exports, because China has been and will be the world's factory. China's exports are very similar to those of Vietnam, which creates both advantages and challenges for Vietnamese goods.
The Ministry of Industry and Trade pointed out that the Chinese economy has set a plan and is aiming for high-quality growth, covering most areas of the economy. This also means that China has and will continue to place higher requirements on the standards of both exports and imports. This is an inevitable and irreversible trend and requires manufacturers and exporters of goods in the world in general and Vietnam in particular to change and adapt.
In the coming time, in order for export activities to the Chinese market to recover and develop sustainably, the Ministry of Industry and Trade recommends that enterprises, especially enterprises producing and exporting agricultural products and foodstuffs, need to pay attention to research and urgently complete registration procedures before exporting agricultural products and food to the Chinese market.
The enterprises should also coordinate with Chinese partners to diversify export routes of goods through border gates, avoiding focusing on certain border gates or taking advantage of Vietnam's sea transport and intermodal rail transport to minimize the risk of causing congestion at the border gates during the peak season.
On the other hands, the enterprises should also carefully study information, signals and regulations and standards of the market, fully comply with the conditions of business registration, quality standards, testing and quarantine, packaging, and traceability.
They also need to increase attendance at international fairs and exhibitions organized by localities and central agencies of the two countries in order to strengthen direct connection after the prolonged restriction of the epidemic.
In the near future, the Ministry of Industry and Trade will also organize many large-scale trade promotion activities in the Chinese market, in which, the Asia-Africa Market Department will have some activities aimed at the traditional market of Guangxi) and new markets located deep within China (Shandong, Hebei). This is an opportunity for Vietnamese enterprises to expand the market.
CK
Source: VITIC/congthuong.vn