Vietnam Targets $454 Billion in Exports Despite Global Challenges

Vietnam has set an ambitious export target of $454 billion for 2025, aiming for a 12% year-on-year growth, even as global economic headwinds threaten to slow down trade.

Rising Exports, But Challenges Remain

According to the Ministries of Finance and Industry and Trade, Vietnam’s export revenue reached $65.2 billion in the first two months of 2025, marking a 9.9% increase compared to the same period last year. Imports totaled $62.9 billion, rising 16%, resulting in a trade surplus of $235 million.

However, experts caution that achieving the ambitious export target will require decisive regulatory action and extraordinary business efforts to navigate persistent challenges.

Key Obstacles to Vietnam’s Export Growth

Nguyen Anh Son, Director General of the Ministry of Industry and Trade’s (MoIT) Agency of Foreign Trade, outlined several hurdles facing Vietnam’s exports:

• Dependence on Key Markets: Vietnam remains heavily reliant on the US, EU, and China, exposing businesses to risks linked to global economic and political shifts.
• Quality and Sustainability Gaps: Many Vietnamese products still fail to meet international standards, making them less competitive as global consumers increasingly prioritize quality and sustainability.
• Infrastructure Limitations: Poorly coordinated investments in seaports and transport networks lead to high shipping costs and extended delivery times, reducing Vietnam’s competitiveness.
• Lack of Market Intelligence: Many businesses struggle with production planning due to limited access to real-time market data and policy changes in key export destinations.

Infrastructure is the big challenge for Vietnam, especially at its ports.

Trade Tensions: Opportunities and Risks

Trade tensions among major economies could both help and hinder Vietnam’s exports.

US-Vietnam Trade Dynamics: Do Ngoc Hung, head of the Vietnam Trade Office in the US, suggested that Vietnam could benefit if it strategically captures market share amid US-China trade disputes. However, he warned that businesses must: Fully comply with US trade investigations. Avoid sourcing raw materials from countries subject to US tariffs to prevent origin fraud allegations.

China-Vietnam Trade Outlook: Nong Duc Lai, Vietnam’s trade counselor in China, noted that US-China tensions could drive increased foreign investment into Vietnam, providing opportunities for greater integration into global supply chains.

Government Strategies to Boost Exports

To mitigate risks and sustain export growth, the Ministry of Industry and Trade (MoIT) has outlined several strategic measures:

Market Monitoring & Diversification:

• Businesses are urged to track policy changes in key markets and adjust production plans accordingly.
• Trade offices abroad will provide regular updates to industry associations to help firms secure new orders.
• Efforts will focus on expanding into new markets such as the Middle East and Halal markets.

Leveraging Free Trade Agreements (FTAs):

• Vietnam aims to maximize benefits from existing FTAs and accelerate negotiations for new and upgraded trade agreements.
• Enterprises will receive training on rules of origin to prevent fraud allegations and ensure compliance with trade regulations.
• Improving Logistics & Digitalization:
• Authorities plan to enhance logistics services to reduce export costs.
• Greater digitalization of trade processes will streamline operations and improve efficiency.

The Road Ahead

With strong government backing and strategic market positioning, Vietnam’s ambitious $454 billion export goal remains within reach. However, business adaptability, policy reforms, and global trade dynamics will ultimately determine the country’s success in navigating the challenges ahead.

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Source: Vietnam Insider