With the support of vigorous export development, Vietnam is expected to become the fastest growing economy in Southeast Asia this year. In sharp contrast, Vietnam's GDP growth rate in the first nine months of this year reached its highest level in 12 years, and it is estimated that the GDP growth rate in 2022 will reach 8.5%.
According to the Ministry of Industry and Trade, export revenue increased by 17.8% to $265.3 billion as of September 15, attributed the increase to the advantages of the free trade agreement.
In fact, EU -Vietnam Free Trade Agreement (EVFTA) played an important role, and Vietnam's exports to the EU increased by 20% in the first eight months of this year.
Meanwhile, Vietnam's exports to the United States rose by 25.4% from January to September, which some attributed to the transfer of orders from China. China's supply chain continues to struggle under pressure from COVID-19 restrictions. Jan Segers, general manager of
Noatum Logistics Vietnam, said that despite the general decline in demand across the ocean market, the business is still good. However, customers are changing from NAC service contract rates to FAK rates, as FAK is cheaper than contract rates.
He said: "During the COVID-19 and after the lockdown, the traditional peak season from China performed mediocrely, so rates are falling, especially for trans-Pacific routes. It's much easier to find export containers in Vietnam now than last year."
"We also see changes in production and outsourcing from China to Vietnam, which is slow, but targeted. Vietnam will never be as big as China, but foreign direct investment in Vietnam is growing."
Foreign investment expenditure increased by 16.2% to $15.4 billion in the first nine months of this year.
Despite positive growth in trade, people are concerned about the risk of destination markets being affected by the economic downturn and the country’s dependence on Chinese raw materials.
After strong growth at the beginning of the year, orders from the apparel and textile industries have continued to decline since July, according to local media reports.
