Brian Jeffrey
A surge in Vietnamese agricultural exports to the U.S. has been observed, with a notable increase in the wood and timber sector surpassing a billion USD compared to the previous year.
CEO of Vina T&T Group, Nguyen Dinh Tung, emphasized the successful export of fruits and vegetables to the U.S., a market renowned for its stringent standards concerning product quality and food safety. Despite initial logistical hurdles, Vina T&T’s revenue from the U.S. market has risen by 26%, accounting for half of the company’s total revenue.
This positive trend extends to the wider Vietnamese agricultural industry. A Binh Duong-based wood products company recorded a 50% growth in U.S. market business over the past seven months, projecting further expansion during the year-end ‘golden season’, a prime period for American retail and home décor.
In July, Vinh Hoan Corporation achieved a revenue of 1.12 trillion VND (about 48 million USD), marking a 30% increase from the previous year, with the U.S. contributing 384 billion VND (approximately 16.5 million USD), a 92% surge from July the prior year.
Overall, the U.S. serves as Vietnam’s primary export destination for agricultural, forestry, and aquatic products, totaling 7.23 billion USD in the initial seven months of this year—an uptick of 21.6% from the preceding year.
Notably, wood and wood products have exhibited exceptional performance, with exports nearing 4.9 billion USD, a 26% escalation, constituting close to 55% of Vietnam’s total wood product export turnover.
The seafood sector is also displaying signs of recovery, with exports to the U.S. amounting to nearly 964 million USD, a 12.8% year-on-year increase. Other agricultural goods such as fruits, vegetables, cashew nuts, and rubber have shown substantial growth as well.
Tea and pepper have demonstrated the highest growth rates, surging by 73.7% and 75% respectively, as per the Ministry of Agriculture and Rural Development. Conversely, commodities like rice and coffee have experienced modest gains.
Prospects for Vietnamese exports appear optimistic, particularly with the U.S. economy displaying signs of revival. Reduced shipping costs and potential U.S. interest rate cuts to stimulate consumer spending could offer further impetus to Vietnamese exports.
Furthermore, recent decisions by the U.S. Department of Commerce have favored Vietnam’s wood industry by exempting specific wooden cabinet exports from anti-dumping and countervailing duties. This decision is anticipated to sustain the growth trajectory of Vietnamese wood products in the U.S. market.
With inflation stabilizing, job expansion, and positive trends in construction and real estate sectors, Vietnamese exporters are well-positioned to leverage these conducive circumstances, ensuring continued growth and bolstering trade relations between Vietnam and the United States.
Tam An
