ASEAN KEY DESTINATIONS
January 9, 2008
The Ministry of Industry and Trade (MoIT) has predicted that Vietnam's export to the European Union (EU) will reach US$10.4 billion in 2008, a year-on-year rise of 23.5 per cent.
High increases are forecast for textiles and garments, footwear, seafood, wooden products and coffee. In particular, footwear is expected to remain the country's major staple with export revenues estimated at US$2.7 billion.
The EU is currently the worlds second largest importer of Vietnam's footwear after the US. It bought US$2.1 billion worth of footwear from Vietnam in 2007, representing 7.2 per cent of its total import value of the item. In recent years, the EU's annual footwear import has reached US$29 billion.
Although textiles and garments are expected to bring home around US$1.65 billion, it will be considerably affected by the EU's removal of the quota on Chinese textiles and garments this year.
The EU is also the biggest consumer of Vietnamese coffee, accounting for around half of the country's coffee export value. Vietnam's coffee export to the EU is forecast to fetch US$820 million this year, a slight reduction compared with 2007 due to the decrease in domestic production output.
Meanwhile, seafood export to the EU is expected to reach US$1.15 billion, a year-on-year rise of 25 per cent, and wooden products, around US$780 million, a year-on-year surge of 30 per cent.
To fully tap the EU market's potential, the MoIT advised export businesses to strengthen their foothold in Germany, the UK, France, the Netherlands and Belgium while seeking more outlets in new EU markets like the Czech Republic, Hungary and Poland.
In 2007, Vietnam earned US$8.5 billion from exports to the EU, a year-on-year jump of 19 per cent, accounting for 18 per cent of the Vietnam's total trade turnover.