Exports have been up 18.2% year-on-year within the first eight months to over US$252 billion, with August shipments rising to a five-month excessive because of restoration in smartphones, computer systems and clothes.
The rise is partly attributed to a shift in orders from China to Vietnam as the previous pursues a strict Covid-19 coverage and an electrical energy scarcity in its southwestern area has affected manufacturing there, in accordance with securities brokerage VNDirect.
One more reason is the contribution of foreign-invested firms, lender HSBC mentioned.
Vietnam, together with Singapore and Malaysia, has been climbing up the worth chain lately because of its unrelenting efforts to extend manufacturing capability.
Agriculture and fisheries have additionally helped maintain exports regardless of tightened spending being seen in main markets such because the U.S. and Europe.
Tuna exports to the U.S. and the E.U. rose by 65% and 70% year-on-year in August.
The belt-tightening in these markets is growing demand for canned tuna as a popular supply of protein, the Vietnam Affiliation of Seafood Exporters and Producers mentioned.
Rice exports rose by 8.1% to over $2.3 billion.
However there are challenges on the horizon.
Inflation within the U.S. continues to be at a decades-high degree, demand is weakening in China and Europe goes via an vitality disaster.
“We can not hold pondering that exports should rise 12 months after 12 months,” economist Le Dang Doanh advised a latest discussion board.
The Worldwide Financial Fund has adjusted its international progress forecast downward 5 instances this 12 months, indicating how unstable the world financial system is, he mentioned.
Vietnam, although nonetheless one of many quickest rising economies on the earth, couldn’t be complacent, no less than for now, he added.
HSBC additionally mentioned there are indicators that demand for electronics is declining, a risk to Vietnam’s exports.
VNDirect analysts forecast Vietnam’s export progress to decelerate within the fourth quarter because of the falling international demand for its items.