Vietnam could surpass Malaysia to become ASEAN’s largest export partner to China

In the first 5 months of 2024, Vietnam’s export turnover to China reached 22.64 billion USD, increasing by 10.2%, making China the second largest export market for Vietnam. This growth highlights the importance of international shipping and logistics between the two countries.

According to Vietnam Customs, the total trade turnover between Vietnam and China in the first 5 months of 2024 reached 77.5 billion USD, up 25.4% compared to the same period in 2023. Exports were 22.64 billion USD, up 10.2%, while imports from China reached 54.85 billion USD, up 33.1%, resulting in a trade deficit of 32.2 billion USD.

Vietnamese durian in high demand among Chinese businesses

China remains Vietnam’s largest trading partner, largest import market, and second-largest export market. This underscores the critical role of freight and logistics companies in facilitating this growing trade relationship.

The leading export category was computers, electronic products, and components, reaching over 4.7 billion USD, up 3.01% year-on-year, accounting for 21% of export value. This was followed by phones and components at over 4.6 billion USD, making up 20.7% of exports. These high-tech exports require specialized cargo logistics services and air freight cargo solutions.

Other product groups showing significant export growth included fruits and vegetables (32.9% increase), cameras and components (96.2% increase), chemicals (88.3% increase), cashew nuts (45.6% increase), coffee (52.9% increase), and ores and minerals (250.8% increase). This diverse range of products requires versatile freight forwarding and shipping international capabilities.

According to the Vietnam Trade Office in Beijing, China’s foreign trade is recovering, with trade activities with Vietnam showing improvement. Vietnam ranks as China’s 4th largest trading partner (after the US, South Korea, and Japan). Within ASEAN, Vietnam is China’s largest trading partner, largest import partner, and second-largest export partner (after Malaysia).

The Vietnam Trade Office in Beijing predicts that Vietnam could surpass Malaysia to become China’s largest export partner in ASEAN by the end of the year. This projection suggests increasing opportunities for international shipping companies and logistics service providers operating in the region.

Vietnamese exports have opportunities to penetrate deeper into the Chinese market due to high sea freight costs, leading Chinese businesses to seek import sources from neighboring regions, replacing European suppliers. This trend benefits freight companies in Vietnam and cargo delivery companies specializing in regional trade.

Chinese businesses are seeking manufactured industrial products, agricultural and aquatic products, especially tropical agricultural products, including high-quality Vietnamese fruits like durian, watermelon, and bananas. This demand creates opportunities for specialized logistics businesses and shipping service companies.

Currently, two Vietnamese products – aromatic rice and cashew nuts – are being sold on the NLS platform as OEM products under the “NLS high-quality products” brand. This development opens new avenues for logistics service providers and freight and shipping companies to expand their services in the Vietnam-China trade corridor.