Vietnam Industrial Products

Textile

Currently ranking second after crude oil as Vietnam’s main export product, textile will soon become the most successful one thanks to its rapid development. At 7.784 billion US dollars, its export quota made up 16.09% of the country’s total export quota in 2007. Customers of Vietnam’s textile consist of 170 countries and regions, the most important of which are from the USA (55%), the EU (19%), and Japan (13%). The main textile products vary, from jackets, shirts, T-shirts, blouses and kimonos to blankets, sheets and mosquito-nets. Vietnam’s textile has long been appreciated for its high quality. However, with high rate of handicraft products (over 90%) and low amount of definitive purchase, the real revenue in foreign currency is relatively low. Moreover, Vietnam’s textile export has to compete with many countries/ regions such as Hong Kong, Turkey, India, Mexico, Bangladesh, especially China whose textile export quota of 40 billion US dollars, or one fifth of the world’s total value. The main areas for textile production are mostly in the South-East of Vietnam which makes up 60% of the industry’s capacity and 85% to the production capacity of foreign invested firms.

Footwear

The third biggest export industry belongs to footwear which constituted 8.19% of the total export quota, or 3,963 billion US dollars, in 2007. The average development rate for the period 2001 – 2005 is 15.6%/ year. Among the 160 importers of Vietnam’s footwear products, the biggest ones include the EU (60%), the USA (20%), and Japan (3%). With export quota ranking sixth in the world, Vietnam’s footwear products make up about 8.8% of the world’s total export quota of 45 billion US dollars in footwear. However, there exist some drawbacks and challenges. One of them is the threat from China, who currently holds 25% of the world’s export market share. Another obstacle is that most of Vietnam’s footwear products rely heavily on handiwork with materials imported from abroad. Despite these shortcomings, some Vietnamese firms have gradually shifted to the definitive purchase sort of trade, while some others have bought the right to manufacture and export footwear products of famous brand names. Highly competitive Vietnam’s footwear products include sports shoes, tennis shoes, leather shoes, and sandals

Electronics – computers

It was not until 1996 that electronics, computers and PC spare parts became export products of Vietnam. But only 11 years later, they became the sixth largest export products, at 2.178 billion US dollars, making up 4.5% of Vietnam’s total export quota. The main product are assembled consumer electronic equipments (80%). The development strategy for domestic firms in the coming period is shifting focus onto developing specialized electronics, including manufacturing device, spare parts and support device for information technology, broadcasting, medical electronics, industrial electronics, mechanical electronics, measures, and automation. By such, the target for Vietnam’s electronics development is that in 2010 the industry’s overturn will be as high as 4-6 billion US dollars and export quota is expected to range from 3-5 billion US dollars, with a development rate of 20-30%/ year

Electric wires and cables

The export of electric wires and cables has emerged only recently and yet it enjoyed quite rapid development during the period 2001-2005 (32.2%). With an export value of 884 million US dollars, it ranked 11^th among Vietnam’s largest export products. Exporting both household and industrial equipments, Vietnam’s electric wires and cables have attracted a number of customers around the world, including Japan (90%), South Korea, Australia and ASEAN countries.

Plastic

The export of plastic products has increased significantly in recent years with 725 million dollar export quota in 2007, a 51.7% rise compared to 2006. Vietnam’s plastic products vary, including appurtenances and spare parts for industry, agriculture, fishery, transportation, construction, post and telecommunications, and consumer equipments. However, production still focuses on low-tech products, while high-tech ones haven’t been paid enough attention to. Largest consumers of Vietnam’s plastic products are the EU, the USA and Japan.

Leather-Canvas

Although leather and canvas have long been considered to be among Vietnam’s key export products, there hasn’t been enough concentration their production and export. Evidently, the export quota for 2007 was only 635 million US dollars, ranking 15th among Vietnam’s export products. With various high quality products like handbags, wallets, suitcases, and umbrellas, Vietnam’s leather and canvas are favored in many countries and regions such as the EU, the USA, Japan, Russia and East Europe

Tags: Vietnam economy environment, Vietnam Industrial Products