US remains Vietnam’s largest export market

The significant improvements in Vietnam-US trade relations have opened up new opportunities for both countries.

Two-way trade turnover between the two countries in 2009 reached US$11.36 billion, 65 times higher than the level recorded before the lifting of US embargo against Vietnam.

By the end of November 2010, the US remained Vietnam’s largest export market with turnover staying at US$12.8 billion- about 18 percent of total export value- up by 25.4 percent over the same period last year.

Vietnam mostly exported garments and textiles, wood products, footwear and seafood to the US.

The US is still seen as one of the biggest export markets in Vietnam’s economic and trade development strategy in the future as the US’ importing demands are rather high and diversified. Particularly, the US is keen to import Vietnam’s best potential products such as garments and textiles, footwear, wood products, seafood, electronics, and products of mechanical engineering.

However, Vietnam’s exports to the US are still at a disadvantage as the country has not yet enjoyed the Generalised System of Preferences (GSP) for developing countries and some of its seafood products such as tra fish and shrimp are facing anti-dumping tax imposed by the US.

To boost exports in the US market, Vietnamese businesses need to grasp the US export-import regulations, improve the quality of products, food hygienic safety and the environment.

Over the past five years, the US’ footwear imports from Vietnam saw a six-fold increase, from US$125 million in 2000 to US$717 million in 2005.

In 2009, Vietnam earned US$1.3 billion from exporting footwear to the US, up by 11.72 percent over the same period of 2008, thus becoming its second largest footwear exporters.

By November 2010, Vietnam’s footwear export turnover to the US hit US$1.2 billion.

To increase footwear export earnings from the lucrative market, Vietnamese businesses need to focus on customer needs for average quality products and less compete with low-cost products imported from China. In addition, Joining fairs and exhibitions will give good opportunities for Vietnamese businesses to promote their products in the most sensible way.

Learning more about the US market, providing a large number of contracts for export manufacturing or opening companies and agents with US partners are business plans that Vietnamese businesses need to take into account to boost exports to the US in the future. – VOV

Tags: US market