VN’s Import-Export Surges 15.3% in 2024: A Record-Breaking Year

Vietnam achieved a historic milestone in 2024, with its import-export turnover soaring to $745 billion by December 14, marking a significant 15.3% growth compared to 2023. This achievement underscores the country’s remarkable economic progress and its expanding role in the global trade network. Exports contributed $384 billion, a 14.5% increase, while imports rose by 16.3% to reach $361 billion. Despite the impressive figures, the trade surplus narrowed slightly to $23.4 billion, down from $25.71 billion in the previous year.

Driving Factors Behind the Growth

Several factors contributed to Vietnam’s robust trade performance in 2024. The country’s export growth was fueled by a strong demand for electronics, textiles, footwear, and agricultural products, all of which are key pillars of its economy. On the import side, a surge in high-value goods, such as machinery, equipment, and raw materials, supported the expansion of domestic manufacturing and other industries.

The increase in newly established businesses and their registered capital in 2024 also played a crucial role in driving trade turnover. These new enterprises not only expanded the production base but also created opportunities for higher taxable trade values, which rose by 15.3% year-on-year.

Record Revenue from Import-Export Activities

The remarkable growth in trade activities translated into record state revenue. By December 10, revenue from import-export operations had reached VNĐ397.86 trillion ($15.6 billion), exceeding the annual target by 6.1% and representing a 13.8% increase compared to the same period in 2023. This robust performance reflects the effectiveness of Vietnam’s trade policies, efficient customs management, and the country’s ability to capitalize on global trade opportunities.

Projections for total state revenue in 2024 are equally promising, with figures expected to reach VNĐ420 trillion, equivalent to 112% of the target and a 13.9% rise from 2023. The increased revenue highlights Vietnam’s growing capacity to harness its trade potential while ensuring effective tax collection.

Trade Surplus: A Resilient Indicator

While the trade surplus dipped slightly to $23.4 billion from $25.71 billion in 2023, it remains a testament to Vietnam’s competitiveness in the global market. The surplus, driven by strong export performance, reflects the country’s ability to maintain a favorable balance of trade despite rising import demands.

The narrowing of the surplus can be attributed to increased imports of essential goods and raw materials, which are critical for sustaining the growth of domestic industries. This aligns with Vietnam’s long-term strategy to strengthen its industrial base and reduce dependence on low-value exports.

Challenges and Opportunities Ahead

As Vietnam’s trade volume continues to grow, challenges such as trade imbalances, fluctuating global demand, and rising protectionism could impact its trajectory. However, the country’s proactive approach to economic reforms and trade diversification positions it well to navigate these challenges.

Opportunities also abound, particularly in the realm of free trade agreements (FTAs). Vietnam has leveraged its participation in numerous FTAs, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP), to gain preferential access to key markets. These agreements have not only boosted exports but also attracted foreign investment, further solidifying Vietnam’s role as a global manufacturing hub.

Strategic Goals for 2025

Looking ahead, the National Assembly has set an ambitious budget revenue target of VNĐ411 trillion for 2025. To achieve this, the government aims to drive GDP growth in the range of 6.5% to 7%, while maintaining crude oil prices between $75 and $80 per barrel. These targets align with Vietnam’s broader economic vision of sustainable growth and global competitiveness.

Customs authorities are expected to play a pivotal role in achieving these goals by enhancing tax management, streamlining customs procedures, and combating smuggling and trade fraud. The adoption of centralized clearance models and the integration of tax and customs processes will further support digitization and automation, making Vietnam’s trade operations more efficient and transparent.

Digitization and Modernization of Customs Operations

A key focus area for Vietnam’s customs authorities is the digitization of processes. By leveraging advanced technologies, such as artificial intelligence and blockchain, the country aims to enhance efficiency, reduce costs, and minimize delays in customs clearance. These efforts are part of a broader strategy to create a seamless and competitive trade environment that attracts both domestic and foreign investors.

Automation of customs operations will not only improve compliance but also facilitate better data analysis and risk management. This, in turn, will enable the government to identify and address potential issues more effectively, ensuring a fair and transparent trading system.

Vietnam’s Role in Global Trade

Vietnam’s record-breaking trade performance in 2024 cements its position as a key player in global trade. The country’s strategic location, coupled with its skilled workforce and business-friendly policies, makes it an attractive destination for international investors. As global supply chains continue to shift, Vietnam is well-positioned to capture a larger share of the market.

The government’s commitment to trade liberalization and economic reforms further enhances Vietnam’s appeal. By fostering innovation, improving infrastructure, and strengthening trade relationships, Vietnam is laying the foundation for sustained economic growth and development.

Conclusion

Vietnam’s import-export turnover of $745 billion in 2024 is a testament to the country’s resilience, adaptability, and vision. The impressive growth in exports and imports, coupled with record state revenue, underscores the effectiveness of Vietnam’s economic policies and its ability to thrive in a dynamic global environment.

As the country sets its sights on even greater achievements in 2025, the focus on digitization, trade diversification, and economic sustainability will be crucial. With a clear strategy and a commitment to innovation, Vietnam is poised to build on its success and continue its upward trajectory in the global trade arena.

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