Businesses capitalize on recovery momentum to explore market expansion
Vietnam’s export landscape is showing promising signs of recovery in the early months of 2024 after facing challenges last year. This trend underscores the importance of efficient freight and logistics companies in managing the surge in overseas shipments, particularly through cargo logistics services.
Orders from major sectors like seafood, wood, textiles, footwear, electronics, fruits and vegetables, rice, and coffee have all seen robust growth rates, driven by rising demand from traditional markets, Free Trade Agreement partners, and even new markets that enterprises are tapping into.
Production across various sectors is experiencing a revival. Photo: N.Linh
Leading food exporter Huu Nghi Food Company exemplifies this positive momentum. According to the company’s Export Business Director Duong Thi Thuy, exports to the critical Chinese market surged by 30% in 2023 compared to 2022 despite widespread headwinds. Remarkably, in just the first two months of 2024, exports to China skyrocketed by 130% year-on-year.
This optimism extends beyond the food sector. Nguyen Huy Thang, an import-export official at manufacturing company Miza Nghi Son, reported that while 2023 revenues dipped slightly due to pricing pressures, production volume hit the targeted 120,000 tons, allowing continuous operations. For 2024, despite anticipated economic headwinds, the company is eyeing a 10% production increase and intensified efforts to boost exports to promising markets like China and Southeast Asia.
Data from Vietnam’s customs authority shows the nation’s trade turnover reached $113.4 billion in the first two months, with a $5 billion surplus – both exports and imports maintained double-digit year-on-year growth. The seafood sector has been a star performer, with $1.3 billion in exports (up 23%) including a near-doubling of catfish exports to $365 million. Additionally, the involvement of cargo delivery companies and freight service providers has streamlined the international logistics services, ensuring timely and secure freight delivery service.
However, economic experts caution that the current surge in export orders mainly extends until mid-2024. Continuing to secure orders for the second half through active market analysis and engagement with buyers will be crucial to sustaining momentum. Enterprises must also adapt to evolving global trends like environmentally sustainable and circular economic models to enhance competitiveness.
The Ministry of Industry and Trade has outlined plans to boost trade promotion in 2024, targeting new export markets while integrating digital and green transformative initiatives. A slate of international trade fairs, supply chain exhibitions, and outreach programs to connect local suppliers with exporters are on the agenda.
In summary, while Vietnam’s exports face near-term uncertainty, the early 2024 rebound across key sectors and proactive efforts by the government and businesses provide optimism for a year of sustained export growth and global market expansion.