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Garments and textiles are one of Vietnam's key export items to the US market.

Vietnam – US bilateral trade officially exceeds US$100 billion

Two-way trade between Vietnam and the US surpassed the US$100 billion mark in the first nine months of the year, with the US remaining as the largest market for Vietnamese goods.

The latest report compiled by the Ministry of Industry and Trade (MoIT) indicates that during the nine-month period, the United States represented the largest export market for Vietnamese goods with an estimated turnover of US$89.4 billion, thereby accounting for 29.8% of the country's total export turnover and soaring by 27.4% over the same period from last year.

The Ministry assessed that the US market is showing signs of stimulating consumption once again, expanding the import and export needs of businesses. Due to this, the demand for wooden products, seafood, and garments and textiles is witnessing a solid upswing, cited VOV.

Regarding imports, the US is also one of the nation’s largest import markets with a turnover of US$10.9 billion after nine months, an increase of 6.2%. Thus, after nine months, two-way trade has officially surpassed the US$100 billion mark to hit US$100.3 billion.

According to details given by the Vietnam Trade Office in the US, there are many reasons for the continuous growth of trade between the two countries in recent times, even amid many fluctuations in the global situation.

First of all, the relationship between both sides is growing steadily. In 2013, the two nations established a Comprehensive Partnership. In 2023 they officially upgraded it to a Comprehensive Strategic Partnership.

Furthermore, Vietnamese goods are increasingly popular in the US market due to their continuously improved quality, updated trends, and competitive prices. On the other hand, changes in the supply chain, as well as the wave of investment shifts, have contributed to enhancing the production capacity of Vietnamese enterprises. This simultaneously creates opportunities and room for Vietnamese goods to increase exports to the world in general and the US market in particular.

According to Dr. Nguyen Minh Phong, an economic expert, moving forward exports to the US will continue to recover and grow amid growing market demand and falling inventories. The biggest concern regarding exports to the US is the country's increasing application of trade defense measures on imported goods.

To limit the risk of being investigated and facing defense measures, Vietnamese enterprises need to increase their understanding of the law on trade defense regulations, create added value on exported products, and store export data to cooperate with the investigation agency when an incident occurs.

According to the General Department of Customs, joint trade reached the US$100 billion mark for the first time in 2021, reaching a figure of US$111.55 billion. Of which, Vietnamese exports stood at US$96.27 billion and imports hit US$15.28 billion.

In 2022, despite facing plenty of difficulties due to the impact of the COVID-19 pandemic, joint trade still recorded remarkable growth with a turnover of nearly US$124 billion.

Last year’s total import-export turnover between the two countries reached nearly US$111 billion.

Vietnam, Australia hold fourth economic partnership meeting

Vietnamese Minister of Planning and Investment Nguyen Chi Dung and Australian Minister for Trade and Tourism Don Farrell co-chaired the fourth Australia-Vietnam Economic Partnership Meeting in Adelaide city of Australia on October 17.

The meeting took place in the context that the two countries upgraded their relationship to a Comprehensive strategic partnership during Prime Minister Pham Minh Chinh's official visit to Australia in March.

Speaking at the event, Dung said that with the upgrade of the relationship, Vietnam and Australia have become key economic partners of each other in various fields, including trade, investment, development cooperation, agriculture, education and training, according to VNA.

At the meeting (Photo: VNA)

Farrell noted that bilateral trade is booming, creating more opportunities for exporters, businesses, and workers of both countries. Over the past three years, two-way trade has reached a record high of 26 billion AUD and Vietnam has become one of the fastest growing sources of international visitors to Australia after the COVID-19 pandemic. Australia's Southeast Asia Economic Strategy is supporting its businesses in seizing new opportunities in the region, with Vietnam defined as one of the countries offering significant potential for Australian exporters, he stressed.

Regarding official development assistance (ODA), Australia is one of the largest providers of ODA for Vietnam. According to the Australian Embassy in Vietnam, in the 2023-2024 period, Australia has allocated 95 million AUD in ODA to Vietnam, mainly in areas such as economic growth, skilled workforce development, energy and climate, and gender equality.

As for foreign direct investment (FDI), as of August 2024, Australian investors had run 660 valid projects with total registered capital of 2.05 billion USD, making it rank 21st out of 149 countries and territories pouring capital into Vietnam.

Two-way trade reached 10.8 billion USD in the first nine months of this year, up 5.6% year-on-year, of which 5 billion USD came from Vietnam’s exports, up 30.3% year-on-year, and the remaining from its imports, down 9.3% year-on-year.

At the meeting, the two sides discussed measures to strongly promote bilateral economic relations and open new directions. They also assessed the implementation of the Enhanced Economic Engagement Strategy (EEES) and the results of the meetings of the Working Groups on ODA, FDI, and trade.

The two sides also deliberated cooperation at multilateral and regional forums and mechanisms, such as the Association of Southeast Asian Nations (ASEAN), the Asia-Pacific Economic Cooperation (APEC), the World Trade Organization (WTO), the Regional Comprehensive Economic Partnership (RCEP), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), as well as the Indo-Pacific Economic Framework for Prosperity (IPEF).

They also agreed that the fifth meeting will be held in Vietnam at an appropriate time to review the implementation progress of the EEES, as well as agreements reached in the fourth sitting, and propose new initiatives and cooperation agreements.

NA Chairman begins official visit to Laos, attendance at AIPA-45

National Assembly (NA) Chairman Tran Thanh Man and his delegation on October 17 afternoon arrived in Vientiane, starting an official visit to Laos and attendance at the 45th General Assembly of the ASEAN Inter-Parliamentary Assembly (AIPA-45) from October 17 to October 19 at the invitation of Chairman of the Lao NA Saysomphone Phomvihane.

Those welcoming the top Vietnamese legislator and his entourage include Vice Chairman of the Lao National Assembly Sommad Pholsena, Vice Chairman of the Foreign Affairs Committee

Vice Chairman of the Lao Foreign Affairs Committee Vandee Butthasavong; Deputy Secretary General of the National Assembly Akhom Praseut; Vietnamese Ambassador to Laos Nguyen Minh Tam alongside embassy staff, overseas Vietnamese community representatives among others.

In recent times, political trust between Vietnam and Laos has been strengthened, while political - foreign affairs, defense - security cooperation has been maintained closely and effectively.

Economic, trade, investment, cultural, educational and training cooperation has seen new positive developments. Especially, plenty of difficulties, shortcomings and inadequacies in key cooperation projects between the two countries have been gradually resolved through working trips and agreements between high-ranking leaders of the two countries, in the spirit of major orientations agreed upon by the Politburo of both nations.

Immediately after his arrival in Vientiane, NA Chairman Tran Thanh Man will have talks with his Lao counterpart Saysomphone Phomvihane and witness a signing ceremony of cooperation agreements, cited VOV.

NA Chairman Tran Thanh Man arrives in Vientiane for an official visit to Laos and attendance at the 45th General Assembly of the ASEAN Inter-Parliamentary Assembly (AIPA-45) from October 17 to October 19.

Also during this official visit, the top Vietnamese NA leader will pay a courtesy call to General Secretary and President Thongloun Sisoulith; meet with Prime Minister Sonexay Siphandone and hold many other important meetings and contacts.

The two sides will discuss and agree on cooperation directions in the coming time to deepen the bilateral relationship, making it more effective and practical, especially further enhancing the effectiveness of cooperation between the two legislatures, while exchanging and coordinating stances on a number of regional and international strategic issues of shared concern.

This is Man’s first official visit to Laos in his capacity as the top legislator. The visit is designed to concretise the high-level agreement between the two Politburos and the Vietnam-Laos Joint Statement, following the state visit to Vietnam by Lao Party General Secretary and State President Thongloun Sisoulith in September, and the state visit to Laos by Vietnamese State President To Lam in July.

The trip reaffirms the Vietnamese Party and State’s unwavering policy of giving top priority to and treasuring the development of the great friendship, special solidarity and comprehensive cooperation between Vietnam and Laos. It underlines Vietnam's strong and comprehensive support for Laos in its renewal process, national construction and defense, while demonstrating the trust and close ties between leaders of the two countries.

The attendance of the top Vietnamese legislator and his delegation in AIPA-45 shows the proactive and responsible engagement of the Vietnamese NA alongside the parliaments of member nations.

This engagement aims to reinforce ASEAN's centrality, unity and solidarity, step up intra-regional cooperation, and expand all-around ties with parliaments both inside and outside the region.

The goal is to promote AIPA's responsibility and role in ensuring peace, stability, and development, while introducing valuable initiatives to support ASEAN governments in dealing with regional priorities.

Besides, the engagement of the Vietnamese NA will also serve as a testament to the nation’s support for Laos as it undertakes significant international responsibilities in 2024, including its role as ASEAN and AIPA Chair and the successful hosting of AIPA-45.

Vietnam to continue consultations with Laos, Cambodia for substantive cooperation: Spokesperson

Vietnam will continue consulting with Laos and Cambodia to promote extensive, substantive, effective cooperation among the three countries in line with development requirements in the new period, for the benefits of the their people, the ASEAN Community, as well as regional peace, cooperation and development, Spokesperson of the Ministry of Foreign Affairs Pham Thu Hang has affirmed.

Hang described the solidarity, friendship and trust among Vietnam, Laos and Cambodia as a valuable asset while answering questions from reporters on Vietnam’s response to Cambodia’s withdrawal from the Cambodia – Laos – Vietnam (CLV) Development Triangle Area at the Ministry’s regular press conference in Hanoi on October 17, VNA reported.

The three countries have set up a wide range of cooperation mechanisms, each making specific contributions to their friendship collaboration as well as development in each nation, Hang said, stressing the CLV Development Triangle Area has helped promote traditional relations as well as cooperation across the economy, trade and people-to-people exchange while bridging development gap and improving the livelihoods in the border areas and the three countries as a whole.

Spokesperson of the Ministry of Foreign Affairs Pham Thu Hang (Photo: VNA)

Regarding recent tensions on the Korean peninsula, Hang said Vietnam hopes that sides involved will exercise restraints, avoid escalating tensions, and remain steadfast in the path towards dialogues, taking into account the interests of each side as well as the common interests of the region and the world, adding this will contribute to maintaining peace and stability on the peninsula, in the region and the world.

Optimism grows as Vietnam's economy forecasts strong 2024 growth

With GDP growth in the first nine months of 2024 reaching 6.82%, Vietnam’s economy is on track for a strong recovery, buoyed by industrial production and a trade surplus.

Attending the panel discussion “Policy Dialogue: Growth Recovery - Prospects and Challenges” organized by the Institute for Economic and Policy Research (VEPR) yesterday, I sensed a strong wave of optimism about growth prospects for 2024 that filled the room.

This positive sentiment radiated from the report presented, as well as from many attendees, including members of the National Assembly, economists, and researchers.

Perhaps there is no need to quote the speeches, as many newspapers have already covered them comprehensively. However, to illustrate this sentiment, I’ll share some data that seemed to garner consensus from everyone present.

First, this optimism was reflected in the two growth scenarios for this year.

In the high-growth scenario, Q4 growth is expected to reach 7.4%, similar to Q3, which would bring the overall growth rate for 2024 to 7%.

In the low-growth scenario, Q4 growth would fall below 7%, with annual growth for 2024 projected around 6.84%.

Thus, regardless of the scenario, the growth rate remains quite high for the “pivotal” year of 2024. Failure to meet this year’s target would have implications for subsequent years.

These assessments were supported by a host of figures. For example, GDP growth for the first nine months of this year reached 6.82%, more than 1.5 times higher than the 4.4% achieved during the same period last year.

Exports and imports also grew faster than anticipated, with total trade volume reaching $578.5 billion, an increase of 16.3% compared to the same period last year. The trade surplus hit $20.8 billion—an encouraging figure for the period from 2020 to 2024.

In addition, the industrial sector has recovered dramatically, realized foreign direct investment (FDI) hit a record high, tourism bounced back strongly, and the pace of money supply and credit growth has also recovered well.

There are many other positive figures as well.

After the Covid-19 period, when Vietnam’s economic growth was erratic—with more declines than gains due to fears of accountability within the bureaucracy and global instability—these positive figures signal a promising outlook.

In response to my recent article, “Vietnam's Growth Soars Like a Rocket,” many readers expressed interest and sought further clarification.

As a journalist, I turned to economic experts, those with specialized knowledge and experience in handling data, to provide more detailed insights for my readers.

First, these experts pointed out that the recovery in industrial production was the main driver of growth in the first nine months of this year. This is evident in the correlation between the Industrial Production Index (IPP) and the Value Added (VA) index of the industrial sector, cited VNN.

Economic prospects are leaving their mark on the lives of citizens and the production and business activities of enterprises. Photo: Hoang Ha

From 2016 to 2019, an increase of 1.11 percentage points in the IPP would generate a 1 percentage point increase in VA; during 2020-2021, a 1.05 percentage point increase in the IPP resulted in a 1 percentage point increase in VA. However, from 2022 to now, the relationship has shifted, with a 0.94 percentage point increase in the IPP creating a 1 percentage point increase in VA. Simply put, the VA growth rate is now outpacing the IPP growth rate, a phenomenon not seen in previous periods.

This shows that improved efficiency in VA is the main reason for the recovery in industrial growth.

Moreover, the economy is no longer reliant on capital-intensive growth as it was before. Social investment growth is now only a third to half of what it used to be, private investment growth is even lower, and public investment disbursement has remained low, with no significant increase from last year.

In the period from 2012 to 2019, an increase of 1.42 percentage points in social investment would result in a 1 percentage point increase in growth. Since 2022, this ratio has dropped to 1.14% for every 1%. In the first nine months of this year, GDP grew by 6.82%, outpacing the 6.8% growth in social investment.

This indicates that the quality and efficiency of Vietnam’s economy have improved dramatically, showing great resilience against natural disasters and global instability.

In short, the macroeconomic indicators are very good, even better than before the Covid-19 pandemic. These positive economic prospects will undoubtedly leave their mark on the lives of citizens and the production and business activities of enterprises in the near future.

The remaining challenge is how to translate these positive macroeconomic factors into tangible impacts on markets such as stocks, real estate, corporate bonds, and especially consumer spending.

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