Vietnam’s export revenues totaled 689 billion USD in 2021, up 22.6%. Exports of FDI businesses alone totaled more than 463 billion USD. These are encouraging results for Vietnam where the pandemic has taken a toll on the general economy, particularly economic hubs, industrial parks, and goods production and distribution.

Vietnam’s exports in 2021 stand firm against the pandemic

Although it accounts for less than 15% of Vietnam’s export revenue, agriculture was the new driver of the economy.  Vietnam maintained its traditional export markets in China, the EU, ASEAN, South Korea, Japan, and the US, Vietnam’s largest market where export revenues increased 27.5%.

Luc Ngan - Thieu litchi has registered for geographical indication in Japan. (Photo: VOV)

Vietnamese businesses have seized opportunities created by FTAs, particularly new-generation FTAs like the Comprehensive Progressive Trans-Pacific Partnership (CPTPP), the Vietnam-EU Free Trade Agreement, and the UK-Vietnam Free Trade Agreement to diversify markets and expand exports to all markets.

This was made possible by all sectors, businesses, and workers maintaining production and distribution during the pandemic. Sectors like electronics, machinery, and accessories maintained production even when the pandemic was at its worst and others like garments, textiles, and footwear have made breakthroughs in the new normal period.

Tran Thanh Hai, Deputy Director of the Import-Export Department of the Ministry of Industry and Trade, said: "Among industrial goods, machinery and electronic accessories are very profitable Though the garment, textile, and footwear sectors were severely hit by the pandemic, they recovered strongly in the last two months of 2021, promising stronger exports this year."

Making full use of FTAs

According to the Ministry of Industry and Trade, in 2021 Vietnam’s exports to the EU grew 10.6%, to the UK and Northern Ireland 14.5%, and to CPTPP markets like Canada 17.6%, Mexico 43.9%, and Peru 84.3%.

Mr. Hai said: "The pandemic will continue this year and if it gets worse, production and export will be affected. But with our infrastructure and labor force, we can still maintain our growth rate, particularly after the Regional Comprehensive Economic Partnership takes effect, and businesses will have the momentum to boost exports."

The Government’s efforts to open the market through bilateral and multilateral negotiations, removing barriers, and clarifyibf the requirements and regulations of partner markets has helped Vietnamese businesses increase their exports.

Vietnam’s export goods have penetrated many demanding markets where regulations and technical requirements are strict, particularly for farm produce and seafood. Economist Nguyen Minh Phong said: "We can expand our exports by seizing the opportunities of new generation FTAs. The quality of our export products has helped us penetrate new markets. I think it’s important to tap the potential of new generation FTAs, like CPTPP, AVFTA, and RCEP."

During the COVID-19 pandemic, FTAs gave Vietnamese exports a boost. In 2022, Vietnamese businesses are striving to make maximal use of FTAs to bring Vietnamese goods to a wider global market.