In the first nine months of this year, $300 billion worth of goods produced in Vietnam were exported, with a significant portion going to challenging markets with high standards, particularly stringent on agricultural and aquatic products.
Meeting standards of industry giants
In 2023, Vietnam earned over $300 million from fresh banana exports, $2.2 billion from fresh durian exports, and nearly $250 million from jackfruit exports. The primary export destinations for these products include China, South Korea, Japan, and the U.S.—all known for their high standards and rigorous quality requirements.
In the first three quarters of this year, export orders for these products continued to grow by double digits, contributing to the total revenue of $5.7 billion for the entire fruit and vegetable industry.
Sharing positive export news, Le Thi My Hanh, CEO of Banana Brothers Farm—a company specializing in banana cultivation and export in Dak Lak—said, “Since the beginning of the year, we’ve exported about $4 million worth of bananas to markets in China, Mongolia, and South Korea.”
The company has also successfully negotiated with a Japanese partner—a notoriously demanding market with stringent standards—for banana exports.
“We sent our products to Japan for inspection, and they were approved for import. The only issue left is the supply; we haven’t organized it yet. Once we confirm availability, they’ll sign the deal immediately,” Hanh added.
Thanks to the banana export protocol signed at the end of 2022, after over a year of formal exports, Vietnam has now become China’s largest banana supplier in the first eight months of 2024, exporting 460,000 tons valued at $190 million. Vietnam’s share of China’s banana imports rose from 31.33% in the first eight months of last year to 40.71% in the same period this year.
CEO Le Thi My Hanh emphasized that exporting fruits to any formal market is challenging, with no “easy” market. Companies must meet phytosanitary requirements from each importer and strictly adhere to production processes to ensure top quality.
With market integration and participation in multiple Free Trade Agreements (FTAs), Vietnam’s export industries have embraced the need for professionalism and sophistication to make the most of market-opening opportunities. As a result, trade volumes have continuously increased year after year, with more international buyers coming to Vietnam to find suppliers.
According to the latest data, in the first nine months of 2024, China alone purchased nearly $44 billion worth of goods from Vietnamese businesses, while the U.S. imported $89.4 billion (a 27.4% increase), the EU $38.1 billion (up 17%), and South Korea $18.9 billion (up 7%) compared to the same period last year.
Sustaining export advantages through FTAs
Vietnam has actively opened new markets and strengthened relationships with major global partners. To date, the country has elevated its ties to a Comprehensive Strategic Partnership with eight nations (Russia, India, China, South Korea, the U.S., Japan, Australia, and France) and is implementing 16 FTAs with over 60 markets.
In 2023, Vietnam’s total export turnover to FTA markets reached $230.5 billion.
The export results from the first nine months of this year demonstrate Vietnam’s continued trade and investment advantages, largely thanks to the support of FTAs.
According to Ngo Chung Khanh, Deputy Director of the Multilateral Trade Policy Department (Ministry of Industry and Trade), Vietnam’s export growth to FTA markets has been impressive. Next-generation FTAs like the EVFTA, CPTPP, and UKVFTA have helped expand the presence of Vietnamese goods across many major markets.
However, for sustainable trade growth with these markets, Khanh emphasized that industries and businesses, alongside market expansion and export acceleration, must also leverage imports. This will help balance the trade equation.
There are positive signals for exports in the final stretch of this year. According to the latest report from the Ministry of Industry and Trade, year-end consumer demand in major markets such as the U.S. and the EU will be a key driver of export growth, especially in electronics, consumer goods, and textiles (as global retailers stock up for major holidays). Additionally, Vietnam’s textile exports will benefit in the short term as export orders shift from Bangladesh.
A survey on production and business trends conducted by the General Statistics Office showed that 36% of enterprises expect to increase export orders in Q4, while 47.6% expect stability, and only 16% anticipate a decline. This is a promising indicator for year-end trade.
The World Bank’s East Asia and Pacific Economic Update notes that Vietnam’s exports to the U.S. have grown faster than to other markets. Vietnamese companies exporting to the U.S. saw revenues increase by nearly 25%—faster than other markets during 2018-2021. The export momentum to the U.S. remains strong.
However, the World Bank warns that economies may face increasing restrictions on playing the “one-way connector” role as new, stricter rules of origin and import-export regulations are implemented.
