Vietnamese exports to US grow as supply chains shift

Vietnam recorded a 24% year-on-year increase in exports to the US in the second quarter, ranking second in the ASEAN region after the Philippines, which saw a 35% rise, according to Nikkei Asia trade data published on its site on October 31.

In the semiconductor and machinery sectors, based on World Customs Organization (WCO) classifications, Vietnam’s shipments to the US in the period surged by 41% year-on-year. The Philippines, Thailand, and Malaysia followed with respective increases of 36%, 16% and 9%.

According to Nikkei Asia, many semiconductor manufacturers and tech companies have established factories in northern Vietnam provinces, with Samsung Electronics operating large facilities in Bac Ninh and Thai Nguyen.

Barry Weisblatt, head of research at VNDirect Securities, noted that the growth in Vietnam's exports to the US cannot be attributed solely to the latter’s robust economy. Vietnam’s share in total US imports has been steadily rising, driven by the sides’ improving diplomatic relations as well as Vietnam’s low-cost yet skilled labour force and enhanced manufacturing competitiveness. These trends are expected to persist, regardless of the outcome of the upcoming US presidential election./.

VNA