Taking advantage of incentives to boost export growth to Mexico
According to the European-American Market Department (Ministry of Industry and Trade), despite being affected by the COVID-19 pandemic, import and export turnover between Vietnam and Mexico in 2020 still achieved positive results.
Statistics show that the total two-way turnover reached USD 3.68 billion, increased by 6.12% compared to 2019; in which, Vietnam's exports to Mexico reached USD 3.16 billion, increased by 11.73% and imports reached USD 523 million, decreased by 18.58%.
In addition, Vietnam's trade surplus with Mexico continues to be maintained over the years and this is one of the few markets in the region where Vietnam has a trade surplus of more than USD 2 billion/year.
As of the end of August 2021, bilateral trade turnover with Mexico continued to grow positively, reaching USD 3.24 billion, an increase of 36.08% over the same period in 2020, making this country the second largest trading partner of Vietnam in Latin America and the fourth largest trading partner in the Americas region only after the United States, Canada and Brazil.
Vietnam's exports to Mexico reached USD 2.92 billion, an increase of 43%. This is the leading export growth rate to the market bloc of countries in the CPTPP Agreement for Vietnamese goods.
However, according to the assessment of the European-American Market Department, the market share of Vietnam's exports in this market is only 1.3%, there is still plenty of room to continue to increase the export of goods, especially when Vietnam and Mexico are both members of the CPTPP Agreement.
Notably, the CPTPP Agreement clearly states that Mexico's commitment to eliminate 77% of tariff lines as of January 14, 2018, equivalent to 36.5% of import turnover from Vietnam and will eliminate tariffs on 98% of tariff lines in the 10th year from the date of entry into force of the agreement. Therefore, Vietnamese goods will have many opportunities to penetrate as well as room to grow exports to this market.
Mr. Luu Van Khang, Vietnam Trade Counselor in Mexico, said that this is a potential market for Vietnamese seafood because each year Mexico imports about USD 351 million of frozen fish and mainly pangasius and tuna..
In particular, in the first eight months of 2021, seafood exports to Mexico reached over USD 59 million, an increase of 77% over the same period last year. This shows that Vietnamese seafood exporters are making good use of tariff incentives from this agreement. In addition to seafood products, rice products, textiles, footwear, etc., also have many opportunities to penetrate deeply into this market.
- IMF forecasts that Vietnam has the highest GDP growth among the 5 ASEAN countries
- CPTPP creates favorable conditions for Vietnam to export to Canada
- Taking advantage of incentives to boost export growth to Mexico
- Industrial production index in 2021 is forecast to increase by 6%
- Export turnover to the US reached USD 61.8 billion in eight months of 2021
- Export turnover to the Netherlands and Germany increased in eight months of 2021
- Trade surplus returns in September
- World Bank forecasts Vietnam's GDP to grow 4.8% this year
- Trade surplus of more than USD 13 billion to the EU market
- Steel exports hit a record