Bags / Shoes & Accessories

According to statistics from the General Administration of Customs of Vietnam, the bilateral trade volume between Vietnam and China exceeded US$50 billion in the first four months of this year, of which Vietnam’s income exceeded US$17.63 billion, an increase of 82% over the same period last year.

China continues to maintain its position as Vietnam's largest trading partner.

In terms of imports, Vietnam’s imports from China totaled US$33.93 billion in the first four months of this year, an increase of 54.1% over the same period last year and accounted for 32.8% of Vietnam’s total imports.

Products with an import value of more than US$1 billion are machinery and equipment (US$7.46 billion), computers, electronic products and parts (US$6.3 billion), telephones and parts (US$2.97 billion), fabrics (US$2.68 billion), and steel (US$2.68 billion). 1.83 billion U.S. dollars), plastic products (1.32 billion U.S. dollars), textile raw materials and leather (1 billion U.S. dollars).

In terms of exports, Vietnam’s exports to China reached US$16.3 billion in the first four months, an increase of 28% year-on-year, and accounted for 15.5% of Vietnam’s total exports.

At the same time, according to statistics from the General Administration of Statistics of Vietnam, in the first four months of 2021, Vietnam’s merchandise exports reached US$103.9 billion, a year-on-year increase of 28.3%. Among them, the total export volume of 19 commodities exceeded US$1 billion.

According to a report by the Vietnam Textile and Apparel Association, the textile industry has set a goal of 39 billion U.S. dollars in textile and apparel exports in 2021. With the export results in the first few months of 2021, this is a practical goal. Recently, the purchasing power of the market has recovered, the textile industry has a competitive advantage, a series of free trade agreements have come into effect, and enterprises have continuously improved their adaptability and actively promoted the diversification of export markets.

The vice chairman of the Vietnam Leather Footwear and Handbag Association stated that in early 2021, the export of leather footwear products grew well, and Vietnamese products won the trust of customers. In addition, the leather footwear industry makes better use of the Free Trade Agreement (EVFTA) signed by Vietnam, the European Union and the United Kingdom, which helps to improve the competitive advantage of Vietnamese leather footwear products in some key markets.

Although Vietnam’s export market is showing positive signs of optimism, many companies still face the difficulties of rising raw material prices, transportation fees, and outbreaks of new crown pneumonia in multiple locations.

Ho Chi Minh City Rubber and Plastics Association President De Min said that the number one problem facing companies today is not to find a market, but to increase the price of raw materials, which increases production costs.

According to statistics, only from the beginning of 2021 until now, the prices of raw materials used in rubber production, as well as chemicals and additives have risen by 60%, and there is still no sign of stopping.

The rising price of raw materials is also a headache for textile and apparel companies. Li Rong, manager of Chengda Textile Company, said that not only the increase in shipping freight has led to an increase in imported raw materials, but the domestically produced raw materials have also increased by 20% to 30% compared with the end of 2020, making enterprises face many difficulties.

Many experts and representatives of industry associations believe that the increase in raw material prices is not a new problem, but for many companies in Vietnam, this problem is becoming more and more serious. At present, attention should be paid to attracting investment and constructing special production areas for raw materials for industries such as textiles, leather and shoes.