HANOI: As Vietnam steps into 2025, following a record-breaking export turnover of over US$405bil in 2024, the export sector is expected to remain a driving force behind economic growth.
The momentum from 2024 is already evident in the early days of 2025.
In the lead-up to Tet (the Lunar New Year) holiday, production has been accelerating to meet signed orders.
The Vietnam Textile and Apparel Association reported that many businesses in the textile sector have secured orders through mid-year, prompting factories to accelerate production.
The textile industry aims for an export turnover of US$48bil to US$49bil in 2025, surpassing last year’s performance by US$4bil to US$5bil.
Companies are proactively preparing for market shifts, particularly in response to changing buyer standards and label requirements, ensuring quality while managing costs.
In the agricultural processing sector, businesses also see significant market opportunities and are planning to expand production capacity.
An example is GC Food Joint Stock Co which is doubling its capacity to meet growing market demand, with plans to increase production by approximately 30% each year in the coming years to sustain growth.
The timber industry also has ambitious export targets, with a forecast of over US$18bil in 2025, up from US$16.25bil in 2024, marking a 20.3% increase.
One of the key drivers for the timber export sector is trade promotion, and green practices are also expected to play a significant role in shaping the direction of exports.
According to the Vietnam Timber and Forest Product Association, the recovery of the global economy, consumer demand in key markets, trade policies and the competitiveness of Vietnamese businesses will all influence the timber industry’s export potential.
The 2025 export target of a 12% growth rate poses a challenge, with monthly exports needing to increase by over US$4bil.
However, businesses are optimistic.
According to the General Statistics Office’s (GSO) survey on the production and business trends in the manufacturing industry in the first quarter of 2025 (1Q25), 79.8% of businesses expect new orders to increase or remain the same.
For export orders, 80% of businesses forecast an increase or no change, and 20% expect a decline compared to 4Q24.
To achieve the ambitious export growth target, the government is prioritising trade promotion and supply chain diversification.
The Industry and Trade Ministry has been tasked with helping industries maximise the benefits of the 17 free trade agreements (FTAs) Vietnam has signed.
The goal is to tap into large, dominant markets while exploring new opportunities in regions like the Middle East, Muslim-majority countries, Latin America and Africa. The country aims to sustain a trade surplus by expanding exports to both established and emerging markets.
Vietnam is also working to advance negotiations on upgrading key trade agreements, including Asean Trade In Goods Agreement, Asean-China FTA 3.0 and FTAs with Canada and the European Free Trade Association.
Multilateral Trade Policy Department director under the Industry and Trade Ministry Luong Hoang Thai highlighted Vietnam’s significant gains from global integration, especially as businesses have adapted quickly to trends like green and digital transformation amid changing global supply chains.
Despite these positive projections, challenges remain.
GSO’s report highlighted several obstacles faced by manufacturing companies.
The most pressing concerns include low domestic market demand, increased competition from local products and the slow recovery of international markets.
Furthermore, many businesses struggle with outdated technology and the lack of investment capital needed to upgrade their production lines.
Additionally, financial constraints, such as high interest rates and limited access to loans, continue to be significant barriers for businesses, with 25.8% of companies facing financial difficulties.
To overcome these challenges, businesses are urging the government to continue lowering interest rates to alleviate the cost burden.
They suggested that the government implement measures to stabilise raw material and energy prices and streamline administrative processes, along with reducing land lease costs for production purposes. — Viet Nam News/ANN
