Wrap up 2024 Review and Plan for 2025 | Vietnam import export

Introduction

As we approach the end of 2024, it’s an opportune moment to reflect on the year that has passed in Vietnam, particularly in the realm of import and export, and to look ahead at what 2025 may hold. Here at Move to Asia, a sourcing agency based in Vietnam, we specialize in assisting SMEs in navigating the dynamic landscape of Southeast Asian manufacturing. Let’s delve into the key developments of 2024, potential challenges, and the path forward for 2025.

Overview of Vietnam's Import Export Sector in 2024

Vietnam's import-export sector experienced significant growth in 2024, highlighted by advancements in pivotal industries such as furniture, ceramics, and textiles. Furniture exports saw a robust increase of 15%, while textiles expanded by 12% compared to the previous year. This growth signals a welcome recovery following the challenges posed by the pandemic in 2023.

However, the sector did face hurdles, particularly rising logistics costs. Shipping container costs from Asia to Europe surged by 20% in the first half of 2024. Additionally, the reliance on raw materials imported from China led to occasional supply chain disruptions. This has created a unique opportunity for Vietnamese businesses to enhance domestic value chains and explore alternative raw material sources.

Another major event impacting Vietnam’s economic landscape in 2024 was the reelection of Donald Trump as the President of the United States. The potential ramifications on international trade, especially regarding U.S.-Vietnam relations, could be quite significant. Analysts predict ongoing pressure from the U.S. on China, possibly allowing Vietnam to capture a larger share of the market. Notably, U.S. companies have increasingly shifted their supply chains to Vietnam this year.

On the European front, France signed a comprehensive partnership with Vietnam, marking a pivotal milestone in the relationship between the two nations. This partnership is set to open up numerous opportunities in trade, economics, and investment, and as a company with French and Vietnamese roots, we welcome this development.

Addressing the Challenges

Despite the opportunities, there are notable challenges on the horizon. The ongoing trade war between the U.S. and China has spurred many companies to diversify their supply chains. This trend is particularly beneficial for Vietnam, which offers competitive pricing and quality. However, as businesses flock to Vietnam, local manufacturers face stiff competition from countries like Mexico and India.

Furthermore, the European market presents its own set of challenges. The EVFTA (EU-Vietnam Free Trade Agreement) promotes cooperation but also demands that Vietnamese businesses meet higher product quality and stricter environmental standards. Standards such as ISO certification and environmental protection certificates are increasingly vital for successful trade transactions.

Move to Asia Developments in 2024

2024 has been a transformative year for Move to Asia. We expanded our operations beyond Southern Vietnam into Northern regions, enhancing our ability to source and support clients in a variety of industries. As we work to facilitate relocation of supply chains from China to Vietnam, we recognize that the two countries have different manufacturing capabilities and standards, and our role is crucial in managing client expectations.

A significant milestone for us was establishing our own Quality Control (QC) team. With experienced professionals in key areas such as furniture, metal manufacturing, and footwear, we can ensure high-quality output across several industries. Despite this growth, one of our ongoing challenges is managing client expectations regarding minimum order quantities while maintaining high quality. Our focus has been on finding factories capable of handling smaller orders without compromising quality.

Looking Ahead to 2025

As we turn our eyes toward 2025, Move to Asia aims to strengthen our presence in key sectors such as furniture, textiles, and footwear. We plan to continue expanding our operations and take on larger projects, particularly in collaboration with U.S. and European clients. Organizing webinars and community events will also be a priority, aimed at sharing insights and fostering long-term collaborations in the sourcing and manufacturing landscape.

Moreover, in light of the economic environment in France, we recognize the necessity to diversify our client base beyond French clients to include opportunities in the U.S., Australia, and other European markets. This strategy will help mitigate risks and ensure sustained growth.

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Keywords

Vietnam, import export, sourcing agency, Move to Asia, furniture, textiles, ceramics, supply chain, Donald Trump, trade relations, EU-Vietnam Free Trade Agreement, quality control, minimum order quantities, partnership, diversification, economic growth.

FAQ

1. What were the key developments in Vietnam's import-export sector in 2024?
Significant growth was noted in furniture exports (15%) and textiles (12%), alongside the challenges posed by rising logistics costs.

2. How did the U.S. election impact Vietnam?
Donald Trump's reelection created potential opportunities for Vietnam as U.S. companies continue to shift their supply chains away from China.

3. What challenges does Vietnam face in maintaining its competitiveness?
Challenges include higher competition from countries like Mexico and India, as well as the need to meet stringent European product standards.

4. What is Move to Asia's focus for 2025?
We aim to enhance our operations in key sectors, strengthen partnerships with U.S. and European clients, and organize events to foster collaborations.

5. How can I stay updated on Move to Asia's activities?
You can subscribe to our newsletter for the latest news, insights, and opportunities.