Vietnam Sourcing and Exports Facing Decline in Early 2023
In the first four months of 2023, Vietnam’s top five export sectors, each worth over $5 billion, experienced a decline ranging from 5.9% to 19.3%. This slowdown has been attributed to a shortage of export orders and global economic challenges. As a result, buyers interested in procuring Vietnamese products should be aware of the potential impact on sourcing and exports.
According to the General Statistics Office, the five largest export sectors in Vietnam faced significant declines in their export values. These include:
- Phones and components: down 17.3%, reaching $17.425 billion
- Electronics, computers, and components: down 8.9%, reaching $16.134 billion
- Machinery, equipment, and other tools: down 5.9%, reaching $13 billion
- Textiles and garments: down 19.3%, reaching $9.571 billion
- Footwear: down 16.3%, reaching $6.13 billion
These declines can be attributed to several factors, including high inflation rates in various countries, tightening monetary policies, and the possibility of a recession. The 53rd Annual World Economic Forum, held earlier this year, predicted that the global GDP growth in 2023 would be 0.5-1% lower than in 2022 unless unforeseen events occur. These trends are expected to reduce demand for goods and negatively affect new investments, production, and exports, including those of Vietnam.
In April 2023, Vietnam’s total export value decreased by 7.3% compared to March, reaching $27.54 billion. This decline was also observed in both domestic economic zones (down 8.6%) and foreign-invested zones (down 6.9%). The overall export value for the first four months of 2023 amounted to over $108 billion, marking an 11.8% decrease compared to the same period in the previous year.
Given the lack of export orders and the resulting decrease in imports of raw materials for production, it is crucial for buyers interested in sourcing Vietnamese products to consider the potential challenges and opportunities in the market. For 2023, Vietnam’s export growth target is set at 6% compared to 2022, equivalent to a total value of $393-394 billion. Achieving this target will require timely solutions to remove obstacles and promote export growth, not only for 2023 but also for the next 5-10 years.
Vietnam Sourcing