70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Trade - Service
Vietnam enterprises urged to diversify markets amid Covid-19 affecting exports to US
Hai Yen 11:43, 2020/03/23
The US did not impose any restrictions on Vietnam’s exports, but the Covid-19 pandemic could impact the US – Vietnam trade outlook.

Vietnamese enterprises should consider the Covid-19 pandemic an opportunity to revise their business strategies and diversify export markets, especially as a prolonged pandemic in the US would affect Vietnam's largest export market, according to Vietnamese Ambassador to the US Ha Kim Ngoc.

 Illustrative photo. 

As of present, the US is one of Vietnam’s major trading partners and the largest export market. Statistics from the US Department of Commerce showed bilateral trade in 2019 reached US$77.6 billion, effectively making Vietnam one of the 15 largest trading partners of the US.

In the first two months of 2020, Vietnam’s exports to the US rose 25.7% year-on-year to US$10.26 billion while the Covid-19 pandemic is causing negative impacts on Vietnam’s trade with other markets.

Ngoc stressed the two governments are closely cooperating to ensure a more balanced and sustainable trade relationship. 

According to Ngoc, the US government has not imposed any restriction on importing Vietnam’s textile and garment products as rumored. He, however, acknowledged as the Covid-19 pandemic turns more complicated globally, a decline in trade activities, including the textile and garment industry, is inevitable.

To prevent the spread of the pandemic, major US retailers such as Macy, TJ Max, Walmart, or Target, have temporarily scaled down operations from now on until the end of March, Ngoc added.

A difficult economic situation also led to a decrease in Vietnam’s exports to the US. This would deal a big blow for Vietnam’s textile and garment industry. In 2019, Vietnam’s exported textile and garment products worth nearly US$15 billion to the US, accounting for 45% of total exports of the industry.

During the first two-month period, the export turnover of garment and textile products stood at US$2.25 billion, up 5.3% year-on-year or 48% of the industry’s exports.

Ngoc expected local enterprises to strictly follow Prime Minister’s Nguyen Xuan Phuc instructions in preventing trade origin fraud and tax evasion, which could potentially make the US imposes punitive tariffs on Vietnam’s imports.

Once the Covid-19 pandemic is contained, Ngoc said market demand would recover, in turn presenting chances for Vietnam to boost exports, including to the US market.

RELATED NEWS
TAG: Vietnam United States ambassador Ha Kim Ngoc trade outlook covid-19 coronavirus nCoV pandemic
Other news
17:54, 2024/05/27
Vietnamese Gov't urged to cut business working week to 44 hours
The Labor Code stipulates that workers should not work more than eight hours per day and 48 hours per week under normal conditions.
10:24, 2024/05/25
Vietnam, Japan continue to expand comprehensive strategic relations
Vietnam considers Japan a first-rate and long-term partner.
11:23, 2024/05/24
Vietnam continues to promote political stability for long-term growth: Deputy PM
The Vietnamese Government remains committed to helping investors overcome challenges, turn risks into opportunities, and achieve rapid and sustainable development.
16:29, 2024/05/23
Japan to support Vietnam in developing highly skilled workforce in emerging fields
The Japan Business Federation (KEIDANREN) considers Vietnam one of its most important partners and is committed to cooperation in digital and green transformation.
12:19, 2024/05/23
Dutch King and Queen to visit Vietnam soon
Close bilateral ties open up opportunities for cooperation in potential fields such as high-tech, innovation, and the exploitation of critical minerals.
17:49, 2024/05/21
Vietnam eyes World Bank’s global logistics top 40 by 2035
Efforts should be made to increase the competitiveness of domestic enterprises to capture a larger market share and elevate the position of Vietnam's logistics sector.