Hanoi, January 28, 2025 – The Europe Today: Vietnam is stepping into 2025 with optimism, buoyed by a record-breaking export turnover of over US$405 billion in 2024. As the nation enters the new year, the export sector is expected to remain a key driver of economic growth, sustaining momentum into the early months of 2025.
In the lead-up to the Tết (Lunar New Year) holiday, production activities have been ramping up to meet the surge in orders. The Vietnam Textile and Apparel Association has reported that many textile companies have secured contracts extending well into the middle of the year, prompting factories to accelerate their operations. The textile industry is aiming for an export turnover of $48-49 billion in 2025, a significant increase of $4-5 billion from the previous year. Companies are proactively addressing evolving market dynamics, such as buyer demands and label requirements, with an emphasis on maintaining quality while controlling costs.
In parallel, businesses within the agricultural processing sector are exploring opportunities to expand production capacity. GC Food Joint Stock Company, for example, is doubling its output to meet the increasing demand, with plans to boost production by 30 per cent annually in the years ahead.
The timber industry is also setting ambitious targets, forecasting exports of over $18 billion in 2025, a 20.3 per cent rise from $16.25 billion in 2024. Trade promotion efforts and sustainable practices are expected to play pivotal roles in driving growth within this sector. The Vietnam Timber and Forest Product Association (Viforest) highlights the recovery of the global economy, rising consumer demand in key markets, and favorable trade policies as critical factors influencing timber exports.
Despite an ambitious target of 12 per cent growth in 2025, which will require monthly exports to exceed $4 billion, businesses remain optimistic. According to a survey by the General Statistics Office (GSO) in the first quarter of 2025, 79.8 per cent of businesses anticipate an increase or stable order levels. Furthermore, 80 per cent of businesses expect export orders to either increase or remain the same, with only 20 per cent forecasting a decline compared to the final quarter of 2024.
To support the continued growth of exports, the Vietnamese government is prioritizing trade promotion and diversification of supply chains. The Ministry of Industry and Trade is working to help industries leverage the benefits of the 17 free trade agreements (FTAs) signed by Việt Nam, aiming to tap into both established and emerging markets, such as the Middle East, Latin America, and Africa. The government is also advancing negotiations on upgrading key FTAs, including the ASEAN Trade In Goods Agreement (ATIGA), ASEAN-China Free Trade Agreement (ACFTA) 3.0, and FTAs with Canada and EFTA.
Lương Hoàng Thái, Director of the Multilateral Trade Policy Department under the Ministry of Industry and Trade, noted Việt Nam’s significant gains from global integration. He highlighted the quick adaptation of businesses to global trends like green and digital transformation, which is key as supply chains continue to evolve.
However, challenges remain for the manufacturing sector. The GSO’s report identified several obstacles, including low domestic market demand, increased local competition, and the slow recovery of international markets. Many businesses are grappling with outdated technology and insufficient investment capital for upgrading production lines. Additionally, financial constraints such as high interest rates and limited access to loans are major hurdles, with 25.8 per cent of businesses facing financial difficulties.
To address these concerns, businesses are urging the government to continue efforts to lower interest rates and ease the financial burden on companies. They also call for measures to stabilize raw material and energy prices, streamline administrative processes, and reduce land lease costs for production purposes.
With these proactive strategies and a focus on international trade, Vietnam’s export sector is well-positioned to remain a critical engine for the country’s economic growth in 2025 and beyond.
