Seafood is one of Vietnam's major export items

CPTPP trade partners

Japan is the biggest trade partner of Vietnam among CPTPP member countries and the fourth largest trade partner in the world, after China, South Korea and the US. 

In 2017, two-way trade turnover between Vietnam and Japan reached $33.4 billion, while Vietnam gained a trade surplus of $250 million.

The other big partners include Malaysia (Vietnam exported $4.209 billion worth of products in 2017 and imported $5.86 billion), Singapore ($2.961 billion and $5.3 billion), Australia ($3.3 billion and $3.16 billion), Canada ($2.7 billion, $774 million), Mexico ($2.34 billion, $567 million) and Chile ($1 billion and $283 million).

The total trade value between Vietnam and 10 trade partners in CPTPP alone reached $67.33 billion in 2017, amounting to 15.8 percent of total import/export turnover of the country.

In trade relationships with 200 countries and territories, Vietnam’s average trade turnover was $2 billion for each market in 2017. 

Meanwhile, considering CPTPP member countries, the figure was $6.7 billion.

The figures show the importance of CPTPP in Vietnam’s foreign trade.

Vietnam has gained a trade surplus with nearly all partners. It has a trade deficit with three partners and all three are in South East Asia, including Singapore ($2.33 billion in trade deficit), Malaysia ($1.65 billion) and Brunei ($13 million).

CPTPP markets open to Vietnamese products

Vietnam hopes that with an export-oriented economy and CPTPP membership which offers preferential tariffs, Vietnam will have more opportunities to boost exports, especially phones, computers, textiles & garments, footwear, seafood and woodwork.

The World Bank said that for Vietnam, multilateral trade agreements like CPTPP will supplement Vietnam’s growth engine based on investments and exports.

As for CPTPP’s biggest market, Japan, Vietnam has five categories of export products earning export turnover of $1 billion or more. The export items to the market are mostly  garments, seafood, woodwork and machinery.

Textiles & garments are the biggest export item with export value of over $3.1 billion, followed by machine & equipment ($1.718 billion), seafood ($1.3 billion) and woodwork ($1.022 billion).

For seafood exporters, the increase in exports to Japan recently and the reduction in reliance on the US market, could be seen as good news. This will not only help Vietnamese enterprises approach another big market with strict technical requirements, but also help mitigate difficulties caused by the protectionism of US President Donald Trump’s administration.

Textiles & garments, footwear and seafood are also important items exported to Canada, Chile and Australia.

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Kim Chi