Vietnam’s exports look to shine for 2015
Vietnam’s exports look to shine for 2015
Vietnam’s exports massively outperformed its peers for 2014, with a gross domestic product (GDP) growing 5.98% on-year at a time when shipments from many members of ASEAN were falling.
The country has benefited from lower wages than other ASEAN members and its demographics have been more promising with relatively high literacy rates, producing a workforce with the drive and skills for factory labour.
Let’s take a look back at 2014 and the three broad categories of exports that contributed to this remarkable GDP growth rate, which equated to 30 percent of the nation’s gross domestic product (GDP).
Top 10 export products
The top ten products collectively jumped 13.9% on-year to gross revenues in excess of US$3 billion, accounting for 69.3% of the country’s total export market.
They were – telephones, garments, computers, footwear, seafood, machinery, crude oil, wood, means of transport, and coffee.
The products that saw the highest growth included garments, up16.8%, footwear (up 23.1%), seafood (up17.1%), machinery, equipment and tools (up 21.4%) and coffee (up 30.9%).
The two most labour intensive export products were – garments and footwear – while the most high tech were – telephones and computers.
Vietnam telephone and computer exports have been a sweet spot for the county. In the last four or five years, from pretty much nothing they have really taken off.
Top export markets
As of the end of 2014, 12 exports markets had combined revenues of more than US$95.32 billion.
The US, China, Japan and the Republic of Korea (RoK) were the top Vietnam’s exports markets. They were also the top markets for the prior year.
Outlook for 2015
For 2015, Vietnam seems likely to grab an even-greater export share as the ASEAN Economic Community (AEC) and a number of FTAs come into effect.
The signing of some FTAs, especially the Trans Pacific Partnership (TPP) in the first quarter of the year would help boost Vietnam’s exports tremendously.
It is undeniable that high exports for 2014 drove economic growth and was a bright spot for the national economy and most leading economists have forecast that exports will continue to shine in 2015.
