Nghe An utilizes FTAs to boost exports

Increasing turnover and expanding export markets

According to the Department of Industry and Trade, Nghe An's total export turnover in 2024 reached USD 3.9 billion, a 25.8% increase from 2023. The estimated export turnover of goods surpassed USD 3.2 billion, marking a 31.57% rise compared to 2023, exceeding the year's plan by 16.9%.

The range of exported goods was diverse, comprising over 100 items/groups of items, with significant growth in several categories. Key products with notable export turnover growth included: Electronic components (up 84.4%); Textile (up 30.1%); Steel sheets (up 29.2%; Electric wires and cables (up 74.5%); Footwear (up 88.1%); Rice (up 75%), etc.

Export markets have continuously expanded year by year. In 2024, local enterprises exported goods to 150 countries and territories.

Significant increases in export turnover were observed in markets such as Hong Kong (up 87.5%), Taiwan (up 68.4%), Japan (up 28.8%), South Korea (up 16.7%), Germany (up 47.7%), and Singapore (up 111.5%). New markets such as Mozambique, Serbia, Tunisia, Rwanda, Belize, Benin, Mauritania, the Dominican Republic, Maldives, and Paraguay were also explored.

Exports to FTA markets reached USD 2.76 billion, a 28.4% increase from 2023, accounting for 86.3% of the total export turnover. The utilization of FTA benefits has enabled enterprises to grow exports and adopt advanced technologies, seizing new opportunities.

The proportion of raw, unprocessed goods has decreased, while processed and industrial goods have increased. The processed and manufactured goods sector has become the province's main export category, achieving over USD 2.9 billion in turnover, representing 90.1% of total export turnover (up from 87% in 2023), a 30.8% increase from 2023.

Enterprises have increasingly recognized the need to participate in global value and supply chains, meeting stringent technical, technological, and management requirements. Many companies in textiles, footwear, and electronics have adopted green production practices to meet international market standards.

In agriculture, value-chain production models have been developed to improve productivity and brand value.

Processed agricultural products from the province are moving towards sustainability. Some OCOP products from Nghe An have met necessary standards for export to international markets, with notable brands like Duc Phong handicrafts, Van Phan fish sauce, Dien Chau peanuts, Quynh seafood, and BOMETA honey. Other products such as instant eel noodles, vegetable-based noodles, and nut milk have secured contracts with partners in Europe, the U.S., and Thailand.

Mr. Nguyen Ho Lam, Deputy Director of the Provincial Department of Cooperative Economy and Rural Development, noted that Nghe An now boasts 632 products rated 3-star OCOP or higher from 397 entities, ranking second nationwide after Hanoi. Many OCOP products have penetrated "difficult" markets such as France, Germany, the Netherlands, Sweden, Denmark, the U.S., Japan, South Korea, and Singapore, affirming the quality of local products.

Maximizing FTA opportunities

Despite challenges in 2024 due to global political and economic fluctuations, which impacted market consumption and increased logistics costs, Nghe An's enterprises continued to push exports. Inflation and spending cuts in key markets like the EU and the U.S. led to reduced import demand and orders for products like fish meal, cassava starch, handicrafts, wood pellets, and processed fruits.

Looking ahead to 2025, the global economic and trade recovery, along with China's significant fiscal stimulus, promises to boost Nghe An's export capacity.

Foreign investment in Nghe An has increased, enhancing production capabilities and export potential. Export markets are expected to continue diversifying, particularly in FTA partner countries with reducing tariffs.

However, 2025 exports face risks and uncertainties, including global transportation disruptions due to the Middle East crisis, rising transport and insurance costs, and increased trade protectionism. Developed markets like the EU are focusing on sustainability, introducing regulations such as the Carbon Adjustment Mechanism and the EU's anti-deforestation rules.

To achieve the 2025 export target of USD 4.0 billion, the Department of Industry and Trade plans to support enterprises by diversifying export markets, leveraging market access opportunities, organizing trade fairs, and facilitating connections between supply and demand.

Efforts will focus on new and potential markets (Eastern Europe, Northern Europe, the Middle East, Africa, Latin America), prioritizing key export products.

The province will accelerate investment projects, especially in key industries like automobile assembly and electronic component production, to create large export volumes.

There will be continued innovation in trade promotion and support for enterprises in brand building, packaging design, and e-commerce platform engagement to enhance Nghe An's global market presence. Additionally, investments will be made in logistics infrastructure to improve connectivity.