Following the enforcement of the EU-Vietnam Free Trade Agreement (EVFTA) there remains ample room to accelerate exports to the German market moving forward, according to industry insiders.
At present, two-way trade turnover between Vietnam and Germany has witnessed constant growth over the years, with exports to the demanding market surpassing US$7.29 billion for the first time.
Most notably, there are 29 major export products to Germany, with 12 items reaching a turnover of over US$100 million and five items with turnover exceeding US$500 million.
Currently, exports to the Central European nation rank seventh among export markets, behind only the United States, China, the Republic of Korea, Japan, Hong Kong (China), and the Netherlands.
With impressive export growth being recorded during the past 10 months of the year, the country is anticipated to rake in US$9.3 billion from exports to the fastidious market this year.
In line with this, a huge trade surplus of US$4.644 billion with Germany has contributed to raising the country’s trade surplus to US$9.59 billion during the reviewed period.
Despite recording robust export growth and a high trade surplus with Germany, Vietnamese export turnover to this market only accounts for less than 0.5% of total German import turnover
Experts have assessed that local businesses must strive to take full advantage of the EVFTA in a bid to further promote exports to Germany, especially with regard to small-scale products such as wood and rubber products, tea, fruit and vegetables, cashew nuts, and coffee.
Furthermore, there are bright prospects ahead for the export of hi-tech products, such as computers, electronic products, components, phones and components as well as other items such as garments and textiles, footwear, iron, and steel products.