International Freight Transport News
Over the last twenty years, Vietnam has been undergoing a transformation from a centrally planned economy to a market economy and over that time, Vietnam has experienced significant growth.
This is good news for the international freight transport sector and shipping companies involved in trade with Vietnam as their business will grow at the same time as the Vietnam economy.
In 2009, export turnovers were over 56 billion US dollars, according to the General Statistics Office of Vietnam.This reflected a decline of approximately 10% from the previous year.
Vietnam’s single largest export is crude oil, which accounted for 11% of earnings from exports in 2009.
Vietnam’s other main exports part from crude oil are textiles, footwear and garments, rice, coffee, rubber and coal. Aquaculture is also an important source of export business as well as processed forest products.
At present, the exports from Vietnam are dominated by agricultural products but this is all set to change as Vietnam increases its industrial base. Already, 5% of earnings are accounted for by electronic equipment. As the country continues to develop its industrial base, the freight services infrastructure will continue to develop to support it. The main markets for exports from Vietnam are the United States, accounting for nearly 20% of exports, followed by Japan, China, Australia and Singapore.
Economic relations between Vietnam and the United States are improving but impeded by Vietnam’s record in human rights. Nevertheless, there have been great strides forwards in economic relations over the last decade and this is reflected in the current level of freight transport. A landmark bilateral agreement in December 2001 significantly boosted the level of Vietnam’s exports to the United States.
The most important imports to Vietnam are commodities, including petroleum products, steel, fertilizer, electronics, machinery and equipment. Most imports come from China, Taiwan, Singapore, Japan, South Korea, Thailand and Malaysia.
Overall, the main trading partners of Vietnam are currently Japan, Hong Kong, Singapore, Korea, Taiwan and the European Union. At present trade with the Asian economies makes up 80% of all Vietnam trade. This actually represents a changed picture as up until 1990, most Vietnam trade was with the Soviet Union.
Most businesses in Vietnam are small and medium sized enterprises and in attempting to embrace the opportunities of globalisation, many turn to freight companies for advice and support. So the freight forwarding sector is itself an important catalyst in the growth of the Vietnam economy.
