Processing and manufacturing industries maintain key role in exports

Vietnam’s exports are experiencing robust growth, with processing and manufacturing industries at the center, continuing to lead in export value across the entire industrial sector.

In the first 7 months of 2024, Dong Nai’s wood industry exported nearly USD 814 million, up 12.6% compared to the same period in 2023.
Strong export growth amid challenges
Despite the recovery, exports still face challenges. For instance, the U.S. has yet to recognize Vietnam as a market economy, and several countries are tightening import controls—factors that exporters must carefully consider.

During the first seven months of 2024, Vietnam’s exports continued to rise. The processing and manufacturing sector accounted for USD 192 billion, making up 84.6% of total export turnover—a 15.4% increase over the same period in 2023.

At the July 2024 Government Press Conference, Deputy Minister of Industry and Trade Phan Thi Thang stated that industrial production is recovering strongly compared to 2023 and continues on an upward trajectory. The processing and manufacturing sector plays a leading role in driving Vietnam’s economic growth.

Experts note that this aligns with Vietnam's ongoing shift toward industrial production, attracting investment and laying a foundation for modernization. Over the past five years, the sector’s value-added growth has consistently outpaced national GDP growth.

Under the Restructuring Plan for the Industry and Trade Sector through 2030, Vietnam aims to expand exports, focusing on products with high technological content, greater localization, and compliance with high quality and sustainability standards.

Dong Nai: A manufacturing powerhouse
In Dong Nai, major processing and manufacturing industries recorded impressive export growth. In July alone, industrial production continued to rise, supported by new orders, favorable export conditions, and stable domestic demand. Over the first 7 months of 2024, 26 out of 27 industries in the province posted production growth.

Dong Nai’s export turnover reached nearly USD 13.3 billion, up over 8% year-on-year. Key product categories saw strong gains:

Wood products: +12.6%

Textiles and garments: +3%

Computers: +10.8%

Yarn and fiber: +5.6%

Machinery and components: +4.6%

According to Pham Van Cuong, Director of the Department of Industry and Trade, both production and exports are rebounding. Dong Nai has been supporting businesses by organizing and registering them for trade promotion programs domestically and abroad, helping them explore new markets.

He noted that foreign trade fairs and exhibitions have been well-attended by local businesses, opening up more opportunities for sales, procurement, and investment partnerships.

Monitoring markets to handle challenges
Despite strong export growth, risks and uncertainties remain due to global geopolitical tensions and economic shifts. Enterprises must now adapt to evolving trade rules and barriers.

Of particular concern is the U.S.’s ongoing refusal to grant Vietnam market economy status. Although 73 countries have recognized Vietnam, its largest export destination—the U.S.—has not. This leads to continued discriminatory treatment in anti-dumping and subsidy investigations, where Vietnam’s actual production costs are not accepted, and instead, surrogate country pricing is used to calculate dumping margins.

In the first half of 2024 alone, the U.S. initiated 11 trade defense investigations against Vietnamese exports—more than any other country.

The wood industry, a major export sector for Dong Nai, is particularly vulnerable to trade barriers. In response, the Dong Nai Wood and Handicraft Association has held seminars and training sessions to help businesses navigate trade defense mechanisms.

According to Vo Quang Ha, Vice Chairman of the association and Chairman of Tan Vinh Cuu JSC, these workshops aim to equip businesses with essential knowledge about trade defense tools, compliance strategies, and competitive positioning for Vietnamese products.

Moreover, Vietnamese firms must begin long-term planning to meet stricter import standards. The European Union, for instance, is preparing a series of new eco-related regulations, including mandatory product origin disclosures and carbon emissions taxes for imported goods.

Van Gia