Vietnam rises to the top 11 largest exporters globally

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From The Nation

From being a minor exporter before 2013, Vietnam rose to number eleven in the global rankings of top exporters by 2023, emerging as a surprise player in global trade.

According to the World Trade Organisation (WTO), Vietnam has advanced significantly in import-export rankings, now standing second in ASEAN, trailing only Singapore.

Phung Thi Lan Phuong, an expert from KTP FTA Consulting, highlighted how Vietnam became one of the four fastest-growing exporters globally between 2019 and 2023, alongside India, Canada, and China. This achievement is credited to the Government's robust economic integration strategy, signing 16 FTAs and opening markets with nearly 60 partners.

 

Phuong emphasised that these FTAs have attracted foreign direct investment (FDI), created jobs and spurred internal reforms. However, FDI enterprises account for 70 % of export turnover, while the domestic value-added (DVA) rate is only 52 %, below the global average.

Notably, in the first ten months of 2024, the domestic economic sector saw robust growth, achieving a rate four times that of the FDI sector. The export-import turnover share of the domestic sector rose to 32 % of the country's total.

The increasing share of the domestic sector marks a turnaround after a long period of decline and dependence on FDI. In 2015, the domestic sector contributed 35.4 % to the nation's total turnover, by 2024, it had risen to 32 %, with further growth expected.

According to the WTO, Vietnam ranked 50th in exports and 44th in imports in 2006. By 2021, it had climbed to 23rd in exports and 20th in imports worldwide. Within ASEAN, Vietnam is second in goods exports and imports, following Singapore.

Despite maintaining a trade surplus since 2012 (except in 2015), Phương noted that value-added in trade remains modest. To enhance this, Vietnamese businesses must improve capabilities, reduce reliance on imported materials, deepen their participation in global value chains and take on higher-value roles.