In contrast to most of its neighbours in emerging Asia, Việt Nam maintained double-digit export growth in the first nine months of this year, weathering the global downturn extremely well, the HSBC said in its latest Global Connections Report Việt Nam.
The report, released on November 14, said the US was Việt Nam’s largest trading partner last year.
Since signing a bilateral trade agreement with the US in 2000 and joining the World Trade Organisation in 2007, Việt Nam has become the second largest supplier of clothing and footwear to the US behind China.
By 2013, the World Bank expects mobile phones and related accessories will overtake garments as Việt Nam’s largest source of export revenue, it added.
According to HSBC, Việt Nam’s exports are expected to grow at a pace in excess of 10 percent out to 2030.
By 2020, China will overtake the US as Việt Nam’s largest export partner but the US, Japan and the Republic of Korea will remain key sources of demand for Việt Nam.
Plans to expand the ASEAN Free Trade Agreement to zero tariffs on all goods by 2015 will be an additional factor supporting Việt Nam ’s trade with other economies in the region over the medium term.
HSBC also reported that the Vietnamese traders are moving away from relying on their banks for trade finance (32 percent) with 37 percent indicating they want to fund their own financial obligations.
Foreign exchange concerns appear to have abated somewhat as 58 percent of traders say they either anticipate exchange rates to work in their favour or do not expect them to hinder growth.
With China, Southeast Asia and the rest of Asia as their top three trading partners and each growing their share in Việt Nam, intra-regional trade continues to be the core of the country’s importers and exporters.