Hanoi (VNA) -🍸 Businesses should fully tap the benefits brought by free trade agreements (FTAs) to which Vietnam is a signatory to promote export value and expand new markets, aiming to reduce overreliance on a single country, said insiders.

In January 2025, Vietnam’s trade turnover reached just over 63 billion USD, with both exports and imports declining. This will make its yearly target of double-digit export growth highly challenging. Experts said that, in addition to measures in support of production and business activities, boosting trade promotion and helping businesses effectively leverage FTAs are crucial solutions to mitigate risks in global trade.

2025 export target remains challenging

According to statistics from the Ministry of Industry and Trade (MoIT), the total import-export turnover in January was estimated at 63.15 billion USD, down 3.5% year-on-year. Of which, export was 33.09 billion USD, and import 30.06 billion USD, down 6,9% and 14.1% compared to December last year, respectively. Declines in exports were seen across all the three major sectors, with agro-forestry-aquaculture down 8.7% year-on-year, processing 3.4%, and fuel and minerals 35.5%. According to the General Department of Customs, Vietnam’s textile and garment exports in the firsts month reached 3.19 billion USD, down 5.4% from the previous month but up 1.8% year-on-year. Footwear exports totaled 1.9 billion USD, declining 3.7% year-on-year. Meanwhile, wood and wood product exports stood at 1.42 billion USD, down 3.7% compared to the same period last year. Notably, the US remained Vietnam’s largest importer in the month, with an estimated value of 10 billion USD, down 2.1% year-on-year. Exports to other key markets like the EU, ASEAN, Japan, and the Republic of Korea also saw declines.

Efforts to expand markets

In 2025, the industry and trade sector has set an ambitious target of a 12% increase in total export turnover compared to the previous year. To that end, businesses must improve management practices, keep a close watch on market developments, and enhance product quality to retain customers. Hoang Manh Cam, Deputy Chief of Office of the Board of Directors of the Vietnam National Textile and Garment Group (Vinatex), emphasised the importance of staying closely connected with customers in target markets, noting that this approach ensures that customers still prioritise their company even amidst policy changes. He also stressed the need to diversify markets by exploring niche markets and ensuring transparency in supply chains. Whenever purchasing, sourcing products or services, clear documentation of origin is essential to verify supplied products, he said. According to Trinh Duc Kien, Deputy Director of Ke Go Co., Ltd., after the Lunar New Year, the company received inquiries from customers in the US and the EU. However, securing orders depends on a variety of factors, and the firm must complete several steps before finalising contracts.

Economists said Vietnam is among the world's 20 most open economies. With its participation in FTAs with many countries and economies worldwide, Vietnamese businesses have favourable conditions to respond swiftly and sustain growth amid potential global trade wars. A major catalyst for export growth in Vietnam is the 17 FTAs the country has joined, which provide a significant competitive advantage for local businesses, allowing their goods to access over 60 markets globally. More importantly, they help Vietnamese products establish a strong foothold and effectively adapt to market fluctuations. Notably, seven FTAs in the agricultural sector have enabled Dong Giao Foodstuffs Export JSC to export over 40 processed agricultural products to 25 markets. To maintain its export position, economist Dinh Trong Thinh said besides expanding markets, businesses must fully tap advantages brought by the FTAs to increase both export value and volume and reduce overreliance on a single country. Meanwhile, Dr. Le Quoc Phuong, former Deputy Director of the MoIT’s Trade and Industry Information Centre, noted that as countries increasingly use trade defence measures to protect domestic goods, exporters must outline scenarios and strategies to respond effectively./.