Vietnam needs to generate $227-231B in exports during final five months

Vietnam aims to generate $227-231 billion in exports during the final five months of the year, according to the Department of Customs. To achieve an annual growth rate of 15-16%, total shipments must reach approximately $546-551 billion, necessitating monthly exports of around $45-46 billion. Currently, Vietnam faces a trade deficit of about $20.3 billion over the past seven months.

Trade Minister Nguyen Anh Son highlighted the escalating difficulty in balancing export growth with maintaining a trade surplus, as the country would require an average monthly surplus of $3 billion to overcome its current deficit. Imports, although integral for future manufacturing, have been mainly in the form of computers, electronics, and components, which make up 40% of total imports.

The pressure is mounting across major export sectors, with garment and yarn production facing challenges due to raw material price volatility and new tariff policies. Vietnam's seafood exports have also struggled, with growth rates below 5% in July, insufficient to meet industry targets. Competing against shrimp producers from Ecuador and India, Vietnam's seafood industry may reach $12.5 billion if trade barriers are swiftly addressed.

For wood exports, U.S. anti-dumping duties have imposed a 84.95% tax on Vietnamese hardwood plywood, creating a substantial financial burden. To address these challenges, authorities are encouraging diversification and urging businesses to leverage tariff preferences and bonded warehouses. The government is working on accelerating negotiations for new free trade agreements and simplifying procedures for certificates of origin.