Vietnam’s exports to rebound: VinaCapital economist
Vietnam’s longest streak of falling exports in over a decade has already bottomed out and export growth is likely to accelerate to some degree throughout 2024, writes Michael Kokalari, chief economist of VinaCapital.

A view of Cat Lai River Port in Ho Chi Minh City’s District 9. Photo courtesy of Vietnam News Agency.
In 2023, a plunge in Vietnam’s manufacturing output and exports were the biggest drags on the economy, just as we predicted in our “Looking Ahead at 2023” report, which was a non-consensus call at that time.
Global export orders are poised to start expanding again because the inventories of U.S retailers and other consumer facing firms look likely to end 2023 down about 5-7% year-on-year, according to recent earnings calls of firms like Walmart, Target, Best Buy, Nike and others. Inventories of U.S retailers had surged by well over 20% yoy in late-2022 and the resulting destocking efforts is reflected in the plunge in global export orders.
Inventory depletion in 2023 explains why Vietnam’s overall exports deteriorated from 11% growth in 2022 to a 4% drop in 2023. With exports equating to over 80% of GDP, a swing of that magnitude has a major impact on GDP growth. We only expect a modest rebound in exports to the U.S this year, partly because U.S credit card debt surged 40% over the last two years, which is constraining U.S consumers’ capabilities to continue purchasing “Made in Vietnam” products and which helps explains why 2023 holiday spending in the U.S was reportedly tepid.
Electronics exports already rebounding
Computers and electronics exports are already rebounding, although exports of smartphones and low value garment products are still falling (note that each of those three product categories accounted for about 15% of Vietnam’s total exports last year). Sales of PCs and other “work from home” products plunged post-Covid, but users have started upgrading to computers that are sufficiently powerful to run AI applications. This helps explain why market research firm Canalys expects global PC sales to rebound from a 12% drop in 2023 to nearly 10% growth in 2024
In contrast, global smartphone sales are only likely to improve from a 3.5% drop in 2023 to 3.8% growth in 2024 according to IDC. Smartphone sales resumed growing for the first time in two years in late-2023 (by about 5% year-on-year), but unlike PCs, for which there is a compelling reason for users to upgrade, consumers do not see sufficiently compelling reasons to upgrade their smartphones.
The net result of all of the above is that “the tech sector has bottomed out led by consumer electronics replacement demand” as Standard Chartered noted in its 2024 global strategy report. Standard Chartered also observed that electronics exports tend to lead overall export recovery/growth in Asia, which bodes well for Vietnam’s overall exports in 2024, while JP Morgan’s 2024 strategy report highlighted the resulting rebound in Asia-wide tech manufacturing output, which bodes well for GDP growth.
Additionally, we note that Vietnam’s imports of the electronic components used to manufacture computers and consumer electronics is surging, which is a reliable leading indicator that companies are ramping up to fulfil the orders in their pipelines.
Finally, garment and footwear exports have not started recovering yet. Firstly, demand from U.S consumers remains weak. Secondly, some production is relocating to countries with cheaper wages (especially Bangladesh). Thirdly, some production is moving out of Asia entirely to minimize the possibility that any of the cotton or other raw material inputs were sourced from China.
All of that said, the overseas customers of garment and footwear factories in Vietnam have generally guided those local firms to expect an increase in orders this year, according to our industry contacts. However, those Vietnamese factory managers also lament that their customers have essentially been giving them small lot and/or last-minute orders rather than the pipeline of 6-12 months’ work as they had in the past.
Nearly one-half of PC distributors expect their sales to increase by over 10% this year, and nearly one-quarter of distributors expect growth of over 25%. Following the passage of the U.S Uyghur Forced Labor Prevention Act at the end of 2021, the number of garment shipments from Vietnam to the U.S encountering issues entering the country surged even though there are no Uyghur minorities in Vietnam.
Consequently, over half of the fashion companies surveyed by the U.S Fashion Industry Association said they now aim to find new suppliers outside of Asia (not just outside China) in order to reduce the possibility that any of the cotton or other raw material inputs used to produce their products could have ultimately been sourced from the Xinjiang Uyghur autonomous region of China.
- Read More
VinaCapital fully divests from Vietnam’s private hospital chain Tam Tri
The Vietnam Opportunity Fund (VOF), managed by VinaCapital, has announced its full divestment from local hospital chain Tam Tri Medical, according to a filing with the London Stock Exchange.
Finance - Tue, June 10, 2025 | 4:43 pm GMT+7
CapitaLand breaks ground on its first luxury low-rise project in northern Vietnam
Singapore's CapitaLand Development (CLD) has broken ground on The Fullton, a luxury low-rise residential development with a gross development value of approximately $800 million.
Real Estate - Tue, June 10, 2025 | 4:26 pm GMT+7
Vietnam’s major affordable housing developer Hoang Quan appoints new CEO
Hoang Quan Real Estate Consulting-Trading-Services JSC (HoSE: HQC), a major affordable housing developer in Vietnam, has appointed Nguyen Long Trieu as its new general director, effective from Monday.
Real Estate - Tue, June 10, 2025 | 4:00 pm GMT+7
US Cargill announces exit from aquafeed business in Vietnam
Cargill, one of the leading animal feed producers in the U.S., has withdrawn from the aquafeed business in Vietnam, said Maxime Hilbert, interim general manager for aqua nutrition at Cargill Thailand & Vietnam.
Industries - Tue, June 10, 2025 | 3:26 pm GMT+7
USD price likely to hit record high of VND26,300 in Q3, drop to VND26,100 in Q4: UOB
Singaporean bank UOB on Monday said its updated forecasts on the USD/VND exchange rate are VND26,300 per USD in Q3/2025; 26,100 in Q4/2025; 25,900 in Q1/2026; and 25,700 in Q2/2026.
Economy - Tue, June 10, 2025 | 2:38 pm GMT+7
Four pillars set stage for Vietnam private sector breakthrough: expert
The four resolutions recently issued by the Politburo, Vietnam's highest decision-making body, mark a critical turning point, opening up major opportunities for Vietnam’s private sector to thrive, said Tran Du Lich, former director of the Ho Chi Minh City Institute of Economics.
Economy - Tue, June 10, 2025 | 12:37 pm GMT+7
How Vietnam’s functional food market evolves
With the presence of major domestic and international brands, along with strong government efforts to dismantle counterfeit product rings, Vietnam's functional food market is expected to continue its upward trajectory in the coming time.
Economy - Tue, June 10, 2025 | 12:18 pm GMT+7
Visa introduces Click to Pay in Vietnam for online shopping experience 'transformation'
Visa has introduced Click to Pay with leading banks and payment facilitators in Vietnam - the first market in Southeast Asia to see the solution that aims to transform online shopping experience.
Finance - Tue, June 10, 2025 | 8:48 am GMT+7
Vietnamese banks leverage national data integration to reach customers
Banks in Vietnam are developing fully digital lending services, enabling customers to apply for and receive loans entirely through online platforms.
Banking - Mon, June 9, 2025 | 11:28 pm GMT+7
Vietnam’s garment-textile exports top $17 bln in five months
Vietnam’s garment and textile exports exceeded $17.58 billion in the first five months of 2025, up 9% year-on-year.
Companies - Mon, June 9, 2025 | 11:21 pm GMT+7
Vietnam's coastal hospitality real estate poised for a new wave of growth
As competition intensifies and the tourism sector rapidly evolves post-pandemic, hospitality real estate investors and hotel operators are adopting more innovative approaches to optimize operations and tap into new revenue streams, write Avison Young Vietnam analysts.
Consulting - Mon, June 9, 2025 | 11:01 pm GMT+7
Rules on private placement bond issuance should be tightened: Vietnam Finance Minister
Allowing only companies that have liabilities five times higher than their equity at maximum to issue bonds via private placement is a necessary move to mitigate risks and prevent abuse, said Finance Minister Nguyen Van Thang.
Finance - Mon, June 9, 2025 | 6:19 pm GMT+7
EV maker VinFast commits to purchasing all output for Vietnamese suppliers
Vietnamese electric vehicle maker VinFast has committed to purchasing all products for domestic suppliers that join its production chain.
Companies - Mon, June 9, 2025 | 5:21 pm GMT+7
Phat Dat affirms leadership role in southern Vietnam's property market following successful launch of La Pura project
The official launch of the La Pura project by Phat Dat Real Estate Development Corp on Sunday in the southern province of Binh Duong made a significant impact, with over 95% of the total inventory in the Zenia sub-zone successfully transacted.
Real Estate - Mon, June 9, 2025 | 4:07 pm GMT+7
Vietnam seeks Samsung partnership in AI-integrated chip design for data centers, telecom networks
Minister of Public Security Luong Tam Quang called on South Korean tech giant Samsung to strengthen its partnership with his ministry in developing Vietnam’s security industry.
Investing - Mon, June 9, 2025 | 3:13 pm GMT+7
Vingroup partners with e-commerce platform Shopee to develop logistics infrastructure
Vietnam’s leading multi-sector conglomerate Vingroup and Shopee, the country’s top e-commerce platform, on Friday signed an MoU to develop infrastructure for e-commerce fulfillment services, enhance digital connectivity between businesses and consumers, and build a sustainable digital ecosystem.
Companies - Mon, June 9, 2025 | 11:48 am GMT+7
- Travel
-
Indian billionaire to visit Vietnam’s Ha Long Bay with 4,500 employees
-
Vietnam in talks on visa exemptions with 15 countries to boost tourism
-
Foreign businesses in Vietnam urge relaxation of visa, work permit requirements
-
AI can be a game changer for Vietnam tourism
-
Google Doodle honors world's largest cave Son Doong
-
Vietnam allows import of Chinese aircraft under new rule