Vietnam Export Growth Driven by Electronics, Agriculture; Trade Surplus Booms

Vietnam's export momentum, fueled by a sustained surge in electronics and a resurgent agricultural sector, continued in April.

According to Vietnam Customers, export turnover totaled $107.82 billion in by April 15 2024, marking a robust 15.8% year-over-year increase.

Electronics components, the country's top export earner, recorded revenue in the same priod of $18.87 billion. This growth trajectory, together with gains in machinery, equipment, tools, and spare parts exports, offset losses in sectors like textiles and garments for the first period of April.

Vietnam's agricultural, forestry, and fishery sectors have also witnessed robust growth. Exports in this category reached an estimated $19.06 billion in the first four months of 2024, a significant 23.7% year-over-year jump. This has significantly contributed to the country's expanding trade surplus in the sectors, which stood at $4.74 billion, marking a 71.5% growth compared to the previous year.

Key Export Drivers

Vietnam's export success hinges on several key factors. Global demand for computers, electronics, and components remains a vital driver, highlighting Vietnam's firmly established role in the global electronics supply chain.

At the same time, key agricultural exports like coffee beans ($2.57 billion), rice ($2.08 billion), and cashews ($1.16 billion) have seen substantial increases in turnover, driving overall growth.

Despite challenges, fruit and vegetable exports experienced a 32.1% year-over-year surge in the first four months of 2024, exceeding $1.8 billion.  Durian, a major contributor to this growth, is finding increased acceptance in markets around the world.

Additionally, the average export price for many Vietnamese agricultural products has increased in 2024, with rice (22.2%), coffee (49.7%), rubber (6.9%), and pepper (36.4%) all seeing higher prices compared to the same period in 2023, providing further bolstering to the sector.

Market Dynamics

Vietnam's major export markets continue to show strong demand for Vietnamese goods, with Asia seeing an increase of 19.8%, the Americas growing by 24.6%, and Europe experiencing a surge of 38.6% in purchases.

Notably, the United States remains Vietnam's largest export market, accounting for over 20% of export value. China, as the second-largest market, saw year-over-year growth of 15.1%.

The outlook for Vietnam's exports remains largely positive. Continued expansion in the electronics sector, as well as sustained demand for key agricultural products, are expected to fuel continued growth.

The expansion of the country's fruit and vegetable production and export potential, particularly in the Chinese market, signals further growth opportunities.

However, it's important to note that global economic headwinds and potential disruptions in supply chains pose risks that could impact Vietnam's export trajectory in the coming months.