Several key commodities surge in Asian and African markets

In the first 10 months of 2024, wood and wood product exports to Asia and Africa reached 4.5 billion USD, an 11% increase, accounting for 34% of total global exports. Photo: TTXVN

Export potential of several key commodities

According to Mr. Dang Phuc Nguyen, Secretary General of the Vietnam Fruit and Vegetables Association (VINAFRUIT), Vietnam's geographical location places it adjacent to one of the world's largest fruit and vegetable consumption markets, China, which annually imports over 15% of the world's exported fruit and agricultural products.

In 2024, Vietnam's fruit and vegetable export turnover is projected to reach a record 7.5 billion USD, with exports to China alone exceeding 5 billion USD, accounting for approximately 70% of the total.

Mr. Nguyen highlighted the substantial export potential of Vietnamese fruits and vegetables to the Chinese market. As the world's second-largest economy with a vast population, China's demand for fruits and vegetables, particularly tropical fruits, is growing rapidly. Vietnam holds a competitive advantage in producing these fruits in large quantities and with high quality.

Beyond China, several other Asian and African markets are key destinations for Vietnam's main export commodities.

Mr. To Ngoc Son, Deputy Director of the Asia-Africa Market Department, noted that the Asia-Africa market is vast, encompassing 117 countries and territories with a population of 6.5 billion, representing about 80% of the global population.

Notably, the Asia-Africa region has a young demographic and diverse demands for goods, making it a crucial market for Vietnam's imports and exports. In the first ten months of 2024 alone, the Asia-Africa market accounted for 66.6% of Vietnam's total import-export turnover.

For example, in the textile and garment sector, exports to Asia and Africa in the first ten months reached 10.7 billion USD, an 8.6% increase, accounting for 35% of the industry's total exports. Exports to Japan reached 3.5 billion USD, a 7% year-on-year increase, while exports to South Korea reached 2.7 billion USD, a 2.7% increase.

Assessing the market potential for textiles and garments, the Asia-Africa Market Department representative noted that in 2023, Japan was the world's largest consumer of textile and apparel products, with domestic production meeting only about 30% of domestic demand.

The African market, with its large population of 1.4 billion, has underdeveloped intra-regional production.

Countries like South Africa, Kenya, and Nigeria exhibit increasing population and income levels, alongside diverse fashion tastes and preferences.

Regarding wood and wood products, exports to the Asia-Africa region reached 4.5 billion USD in the first ten months of 2024, an 11% increase, representing 34% of total global exports.

China is Vietnam's second-largest wood export market (after the US), accounting for 10-12% of total wood exports. In the first ten months of 2024, wood exports to China reached 1.7 billion USD, a 22.2% increase compared to the same period in 2023.

Other markets like India and West Asian countries are experiencing rapid growth in housing construction. Middle Eastern countries are also attracting investment with numerous real estate projects, presenting significant potential.

Agricultural and aquatic product exports to the Asia-Africa market also achieved high turnover, reaching 20.7 billion USD in the first ten months, an 18.8% increase.

Exports of agricultural and aquatic products to China reached 9 billion USD, an 11.6% year-on-year increase, while exports to ASEAN reached 5.2 billion USD, a 45% increase.

Leveraging location-based advantages

Assessing export potential, Mr. Son anticipates positive results for Vietnam's exports in the final months of the year, with total 2024 exports projected to maintain a growth rate of around 15% compared to 2023.

Certain commodity groups, such as agricultural products, seafood, textiles, garments, and footwear, are expected to surge due to order shifts to Vietnam and the low baseline from the same period in 2023.

Meanwhile, electronic components, computers, machinery, equipment, and means of transport are expected to maintain positive growth in the final months, driven by improvements in the global economic and investment environment following recent monetary policy easing.

Factors influencing exports to the Asian and African markets include positive economic growth and large, young populations in these regions. Bilateral and regional trade agreements will create opportunities for Vietnamese businesses to join supply chains.

Notably, the scenario of the US imposing tariffs on Chinese goods is expected to boost exports from ASEAN countries, including Vietnam.The wave of production shifting out of China, especially in textiles, footwear, and consumer goods, is reshaping global supply chains, creating opportunities for Vietnam to attract foreign investment.

However, exporting to these markets also presents risks and challenges, as geopolitical competition between major powers can disrupt global value chains.

The Asia-Africa Market Department representative recommends that businesses rapidly transition to official export channels, strengthen the development of distinctive product brands, and proactively grasp market requirements such as technical standards and documentation.

Businesses should pay attention to consumer trends and preferences, especially demands for green and clean consumption, while adopting appropriate market segmentation strategies for promotion and branding, and applying advanced technologies in processing, packaging, and product preservation.