Potential Markets For Import And Export Between Vietnam And The US In 2021

The general import and export for Vietnam in the first quarter of 2021

In the first two months of the year, both exports and imports improved, dominated more by exports and resulting in a trade balance surplus of nearly 1.3 billion USD.

According to the Vietnam General Statistics Office (GSO), the total import and export turnover was estimated at 95.8 billion USD in the first two months of this year, an increase of 24.5% over the same period last year. Exports increased by more than 23% to 48.5 billion dollars, while imports increased by nearly 26% to 47.2 billion dollars. In the first two months of the year, the merchandise trade balance was estimated to be a surplus of 1.29 billion USD.

Three groups accounted for nearly 98% of all exports. Heavy industrial goods and minerals were estimated at 26.6 billion USD, up 27.8%. The value of light industry and handicraft goods were estimated to be 17.3 billion USD, up 18.6%. Agriculture and forestry totaled 3.6 billion USD, which was up 22.2%.

The number of exports to major markets also increased. With 14.2 billion USD in exports, up 38.2% from the same period last year, the United States remains a rapidly growing export market for Vietnam, even while holding the number one rank by a substantial margin.

Market opportunity for some products

Textile and Garment

Textile and Garment

Export of garments increased 79.6%

Based on the preliminary data from the General Department of Customs, the export of textile and garment products jumped by 565 million USD in the first half of March 2021, corresponding to an increase of 79,6% over the same period in 2020.

The textile industry is expecting stronger resilience in 2021 compared to 2020. Their markets have benefitted from national social management and disease prevention behavior with many new approaches. The United States Government recently established a huge $1,900 billion support package that directly impacts low and middle-income US households, improving their ability to spend on essential commodities, including textiles and garments. It is predicted that in the second quarter of 2021, yarn and garment orders to Vietnam will be assured, with good results. Businesses are expected to quickly deploy new forecasts based on freshly negotiated purchase agreements in the following quarters.

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Shrimp

Shrimp

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), the structure of Vietnam’s shrimp export market has changed significantly compared to 2020 when was dominated by the global Covid-19 epidemic. Vietnam served 67 shrimp importing countries in the first two months of this year, up considerably from 63 during the same period last year.

Fisheries trade data from the US National Oceanic and Atmospheric Administration (NOAA) indicates growth in 2021 for the United States imported shrimp. In January 2021, the United States imported $ 601.6 million with the amount of shrimp up to 69,653 tons, increasing 6% in value and 7% in volume compared to January 2020. Except for May and November, when it was heavily affected by the COVID-19 outbreak, the value and volume of shrimp imports in the United States remained strong compared to the same time in 2019. By the end of 2020, the total amount of imported shrimp had reached 747,921 tons, up 7% in both value and volume compared to 2019, worth $6.5 billion.

Wood 

Wood

Mr. Thomas Russell, senior editor of Furniture Today magazine, evaluated the potential of the furniture industry, stating that by 2020, US bedding and furniture sales had risen by just 0.6%, hitting $ 115 billion, due to stagnation caused by the COVID-19 pandemic. It is expected that in the next 5 years, the sales of bedding and furniture will reach 143 billion USD, an increase of nearly 25.5% from 2020. In which, bedding products will reach sales at the same level, 21 billion USD; sofa at 22 billion USD; entertainment furniture, dining room, children’s room or kitchen will increase by more than 20%.

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Ms. Julie Hundersmarck, a specialist with the US Forestry Department, reported that the US is one of the markets that strictly regulates wood sources, requiring stringent quality requirements as well as the proof of legality of wood products. Regulators have a variety of tools to ensure compliance with legal timber legislation at all times through monitoring of the product supply chain or from raw materials, regardless of the rate of inspection. Imports into the US only account for 1-2% of the total number of orders. The US Forest Service is also developing more wood validation devices and will assist Vietnam to better control the legality and origin of products when timber is exported to the United States. Strict compliance with regulations will ensure growth and – sustainable development of both sides.

Import and export goods between Vietnam and the United States

Mango

Mango

Import of mangoes from Vietnam to the United States has increased dramatically recently. In 2020 in the United States, Vietnam was ranked the 14th largest supplier of mango, compared to 2019. On an export volume of 2.1 thousand tons, shipped value rose 70.1% on a 66% increase in volume, equivalent to $4.61 million USD.

The Import and Export Department of the United States Department of Agriculture (USDA) announced that by 2020, total imports of mangoes in the United States had reached 728.92 thousand tons, an increase of 11.5% in volume and 12% in value over 2019, totaling up to 916 million USD. The average price of imported mangoes also reached 1.26 USD / kg, up 0.5% from the previous year.

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Mango imports into the United States are expected to grow at a rate of about 3% per year from now until 2025, according to experts. This may be an opportunity for Vietnam to increase its market share in this area.

Cashew

Cashew

According to the Department of Agro-Processing and Market Development (Ministry of Agriculture and Rural Development), in the first two months of 2021, cashew nut exports achieved $ 442 million and 75 thousand tons, gaining 21.5% in price value and 46.1% in volume compared to the same period in 2020.

The Netherlands, China, and the United States remained the top cashew importers from Vietnam in the first month of 2021, accounting for 10.3%, 19.2%, and 24.0% of total cashew nut export value, respectively.

Because cashew exports are increasing strongly, according to the General Department of Customs, the need to import raw cashew nuts to serve for processing is greater. The amount of imported cashew nuts was estimated at 70 thousand tons in February 2021, with an import value of 90 million USD, taking the overall value and volume of imported cashew nuts to 194 thousand tons and 270 million USD in the first two months of the year. Compared to the same timeframe in 2020, the 2021 values increased by 53.5 percent and the amount increased by 82.8 percent.

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