NEW TRADE OPPORTUNITIES FOR VIETNAM ARE GETTING CREATED – COMPLETE STORY

 

WHY HAS VIETNAM BEEN PREFERRED OVER CHINA IN RECENT TIMES?

One of the main reasons behind the decline in trade opportunities in China is the rising cost of procuring and manufacturing goods accompanied by expensive labor costs. Many businesses have ditched China and switched to Vietnam for their further deals. The decline in opportunities for China is happening very rapidly and in recent years, the speed has increased even more. Numerous businesses have already shifted their manufacturing and processing work to Vietnam. Vietnam is transforming slowly into a full-fledged global manufacturing hub as it has been selected by many businesses now over China.

For example, the Pearl River Delta located in China was known as the most important center for the manufacturers of the world in the past but now the same factory is proving to be very costly for the manufacturers and as a result, they are leaving here and searching better alternatives in Vietnam.

On comparing the labor charges of both nations, we get to know that the cost of labor in Vietnam is almost 50% cheaper as compared to China. In Vietnam, the average labor charges for one hour are USD 2.99 whereas, in China, the average labor cost for one hour is USD 6.50.

RISE IN THE TRADE VALUE OF VIETNAM

Keeping the above facts in mind, we will share some values that are gathered directly from Vietnam Trade Data till mid-February 2023. In just 40-45 days, the trade from Vietnam has already crossed a mark of USD 72 billion. This value of USD 72 billion includes total exports of USD 37 billion and total imports of USD 35 billion making the trade surplus of USD 2 billion.

According to Vietnam Export Data of first 15 days of February 2023, the total exports crossed a mark of USD 13.44 billion.

 

 

Although various products were exported from the nation to the world from the beginning of this year till the 15^th of February 2023 the major contribution in exports was of the following items:

·        Mobile phones and their components

·        PCs

·        Other electronic items and their spare parts

·        Machines

·        Textile and clothing items

These item categories have a major stake in the calculation of total exports of billion dollars.

In the time span of 15 days, the total imports of the nation as per Vietnam Import Data were USD 12.38 billion. The majority of imports were due to the imports of computers, electric gadgets and components, machines, and spare parts.

If we study the major import and export partners of Vietnam in previous years, say 2021, then the major countries that imported the items from Vietnam the most as per Vietnam Export Data were the United States, China, South Korea, Japan, and Hong Kong. On the other hand, the major countries from which Vietnam imports goods were China, South Korea, Japan, Taiwan, and the United States.

CONCLUSION

In the year 2022, the total trade to and from Vietnam was USD 730.4 billion. In the current year, Vietnam has already crossed a mark of USD 72 billion. It is projected that if the same pace is followed by the nation in the upcoming months too, then Vietnam will set a new record this year. We suggest all the enthusiastic traders to decide upon their trading strategy to Vietnam as it is a good opportunity to generate profits.

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