Exports to EU set new record
Exports to EU set new record
In the first five months of this year, Vietnam’s exports to the EU have continued to flourish reaching $13.4 billion in export surplus and showing a 47 per cent jump on-year by efficiently leveraging the advantages of the EU-Vietnam Free Trade Agreement (EVFTA).
The latest figures from the General Statistics Office show that Vietnam raked in $152.8 billion in total export value in the first five months this year, up 16.3 per cent over the same period last year.
Exports to the EU zone alone shot up by 20.3 per cent, with an export surplus reaching $13.4 billion and soaring by 47 per cent.
The flourishing trade between the EU and Vietnam has followed the success of the previous quarters thanks to the advantages of the EVFTA and the economic rebound in countries within the EU zone.
Vietnam’s key agricultural exports have all eyed rosy growth in the year to date.
Vietnam’s key agricultural exports have all eyed rosy growth in the year to date.
For the cashews sector in April, export volume to the EU reached over 48,600 tonnes, generating $290 million in export value. It showed a 21.8 per cent hike in volume and a 21.4 per cent rise in value compared to March.
Dang Hoang Giang, general secretary of the Vietnam Cashews Association noted that the EU is currently Vietnam’s second-largest cashew export market, accounting for 23 per cent in volume and 22 per cent in value of the sector’s total.
The EU zone has great potential to progress to seize the number-one position in the near future.
With the EVFTA in place, the duty on cashews imported from Vietnam fell to zero, compared to a 7-12 per cent tariff previously.
Seafood exports to the EU also saw accelerated growth.
According to the Vietnam Association of Seafood Exporters and Producers, the seafood sector posted nearly $3.6 billion in export value in the first four months, up 44.5 per cent – in which, exports to the EU brought in slightly over $420 million with a jump of 47.3 per cent.
In 2021, seafood exports to the EU reached almost $1.1 billion in value, up 12.3 per cent on-year, turning the EU into Vietnam’s third-largest seafood export market behind the US and Japan.
Similarly, the export of textiles, apparel, and footwear to the EU also witnessed reasonable growth. From January to April, material and clothing rose by 34.6 per cent compared to last year to reach $1.3 billion, and footwear amounted to $1.8 billion, up 19 per cent.
Vietnam’s many export sectors prove to have effectively availed of the EVFTA rights in the first year of its implementation.
Figures by the Vietnam General Department of Customs show that in 2021, the two-way trade value between Vietnam and the EU surpassed $57 billion, showing a 14.5 per cent jump on-year.
Exports amounted to $40.1 billion, up 14.2 per cent, and imports reached $16.9 billion, climbing by 15.3 per cent.
In 2021, the export surplus to the EU came to around $23.2 billion.
According to the WTO and Integration Centre, and compared to other FTAs that have come into force, local businesses hold a fairly high level of understanding about the EVFTA, with 30 per cent of surveyed businesses clearly knowing about the commitments under the EVFTA compared to the average level of 23 per cent for other agreements.
