What is the trade surplus in Vietnam in 2024?

Vietnam’s Trade Surplus Reaches Record High in 2024

Vietnam’s economy has experienced a remarkable growth trajectory in recent years, and its foreign trade sector has played a pivotal role in this success. In 2024, the country’s trade surplus reached a historic high, demonstrating the resilience and strength of its export-oriented economy.

Surge in Trade Volume

According to official data, Vietnam’s total trade volume in 2024 soared by an impressive 14.5% to an estimated USD 786.07 billion. This significant increase reflects the country’s continued integration into global supply chains and its growing competitiveness in international markets.

Historic Trade Surplus

Buoyed by the surge in trade volume, Vietnam’s trade surplus in 2024 reached a record USD 24 billion. This represents a substantial increase compared to the previous year, when the surplus stood at USD 18.2 billion.

Factors Contributing to the Surplus

Several factors have contributed to Vietnam’s impressive trade performance in 2024. These include:

• Strong export growth: Vietnam’s exports have continued to expand rapidly, driven by increased demand for its electronic goods, garments, and agricultural products.
• Strong demand for imports: Despite the global economic slowdown, Vietnam’s imports have also grown, although at a slower pace than exports. This is due to the country’s need for raw materials, machinery, and other inputs to support its manufacturing sector.
• Competitive currency: Vietnam’s currency, the dong, has remained undervalued relative to other currencies, making Vietnamese exports more competitive in international markets.

Economic Implications

The record trade surplus in 2024 has positive implications for Vietnam’s economy. It:

• Boosts foreign reserves: The trade surplus helps to increase Vietnam’s foreign exchange reserves, providing a buffer against external shocks.
• Contributes to economic growth: The export-oriented nature of the economy means that a trade surplus helps to generate economic growth and create jobs.
• Improves investor confidence: A strong trade surplus signals economic stability and attracts foreign investors to Vietnam.

Conclusion

Vietnam’s historic trade surplus in 2024 is a testament to the country’s economic strength and the success of its export-led growth strategy. The surge in trade volume and the widening surplus will continue to contribute to the country’s economic development and improve the well-being of its people.