From an importing country with an imbalanced economy, Vietnam has become world’s exporter for some sectors, with effective macro-economic policies and improved manufacturing industry, maintaining momentum in the country’s economic growth.
Vietnam was a net importer as of 2012. Over the period 2012-2014, exports prevailed, resulting in a more equal trade balance. 10 years ago, the country was still incapable of producing locally-produced cars. Now, Chu Lai-Truong Hai is one of the biggest vehicle manufacturers in Vietnam, with a localisation rate of 50%.
"Local products can definitely compete with imported products, giving that they meet quality standards and are cheaper than those from Korea or Japan", said Truong Ba Duong - Chairman, Management Board of Truong Hai Auto JSC.
Samsung Vietnam is a foreign-invested company which provides processing contracts for many Vietnamese firms. Currently 35% out of every 100 Samsung smartphones on the global market are produced in Vietnam.
"FDI businesses outsourced domestic firms to produce machinery components. Partnering with them brings new and major opportunities for us", said Hoang Minh Tri - Director of 4P Ltd.
In addition to the improved manufacturing sector, export doors will be further widened after free trade agreements to which Vietnam is a signatory will take effect. So far, Vietnamese products have penetrated over 180 markets.
"Vietnam’s export capacity has been much improved in terms of quality and quantity. Over 20 sectors have registered export turnover of 1 billion USD instead of 1-2 sectors as previously", said Tran Tuan Anh - Minister of Industry and Trade.
According to the Ministry of Industry and Trade, Vietnam recorded a trade deficit in 2015 after 3 consecutive years being in surplus. However, the trade deficit is only half the National Assembly’s target.
According to the latest statistics from the General Department of Vietnam Customs, Vietnam announced a 1.36 bil USD surplus in quarter I.
