VINACHEM

The value of Vietnamese export orders to the Chinese market increased by additional US$600 million in July compared to June, according to the Ministry of Industry and Trade.

Most notably, high export turnover was recorded in various items such as phones (US$1.45 billion, up 18%); computers (US$1.24 billion, up 57%); and rubber (US$173 million, up 124%).

Throughout the seven-month period, Vietnamese export value to China edged up by 7.5% to US$33.4 billion, equivalent to an increase of nearly US$2.4 billion compared to the same period last year.

In particular, wood and timber exports saw an impressive growth rate of 48% year on year to reach more than US$1 billion.

Meanwhile, the export of cameras, camcorders, and components skyrocketed by 85% to US$2.43 billion, while that of fruit and vegetables soared by 22.5% to nearly US$2.2 billion. Footwear exports also surged by 88.7% to roughly US$950 million.

According to industry insiders, export orders to China have increased significantly thanks to a recovery in global consumption demand coupled with improved product quality, especially in terms of Vietnamese agricultural products which have met stringent requirements relating to growing area codes, packaging, and food safety indicators.

Experts say there remains ample from ahead for Vietnamese exports to the northern neighbour in the remaining months of the year thanks to high consumer demand during the year-end period.

Furthermore, a number bilateral and multilateral cooperation agreements, such as the ASEAN - China Free Trade Agreement (ACFTA) and the Regional Comprehensive Economic Partnership Agreement (RCEP) are expected to create a wealth of opportunities for Vietnamese goods to further penetrate the market moving forward.

High shipping costs and trade tensions with the United States and the EU have forced many Chinese enterprises to seek suppliers in neighbouring regions, with Vietnam emerging as the top option.

Insiders predict that the signing of protocol for fresh coconuts from the Vietnamese market will help exporters to earn between US$300 - 400 million per year from this market.

– Source: VOV –