trade in vietnam

Presentation by Group 10
Table of contents

01 Overview
 Theoretical overview
02 roles of trade
 For economic development
 Situation in Vietnam  Free trade agreements

03 Pros and cons

 Achievements
04 Policy implications

 Drawbacks
 1.1
Theoretical overview
o What is trade?
o How does it works?
o Categorization of trade
What is trade?
 Is a basic economic concept.
 Involves the buying and selling of goods and
services.

The way trade works

 Early form of trade: The Gift economy
- Goods and services were exchanged without an explicit
agreement and money.
- The invention of money simplified and promoted trade.
- Trade between:
+ 2 traders: bilateral trade
+ More than 2 traders: multilateral trade
 Modern view: a predominant form of
economy
- Exists due to speacialization and the division of labor.
- Exists between regions as different regions have
comparative advantages.
trade categorization

Domestic trade International trade

- Is the exchange of domestic goods within the - Is the exchange of capital, goods, and services across
boundaries of a country. international borders.
- Includes: - Includes:
+ Wholesale trade + Export
+ Retail trade + Import

Wholesale Retail Export Import

Buying goods from Selling small Products that are sold to Products that are bought
manufacturers or quantities of goods to the global market from the global market
dealers or producers in consumers
large quantities and
selling them in smaller
quantities
global trade
global trade
 global trade

Specialization in international trade

1.2
Situation in
vietnam
Domestic trade
Before
1986
1858
1858
Now

Doimoi reform
Feudal era Colonization period
Feudal era
Domestic trade
Before
1986
1858
1858
Now

Doimoi reform
Feudal era Colonization period

development of ancient towns

Colonization period

Ben Thanh market

Dong Xuan market

Dong Ba market
Domestic trade
Before
1986
1858
1858
Now

Doimoi reform
Feudal era Colonization period

formation of large-scale
development of ancient towns market systems
Doimoi reform
Domestic trade
Before
1986
1858
1858
Now

Feudal era
development of ancient towns
Doimoi reform
Colonization period
focus on implementing three major
formation of large-scale economic programs (Food Program,
market systems Consumer Goods Program and Export
Program)
international trade
international trade
international trade
international trade
 02
roles of trade
Trade is central to ending global poverty and boosting economic growth. Countries that are
open to international trade tend to grow faster, innovate, improve productivity and provide
higher income and more opportunities to their people.

For economy
in vietnam
 Annual growth rate
1990 - 2011:
- Trade was an engine growth for VN, annual growth rate
~7%.
- Total volume of trade with the world: $5B (1990) - $205B
(2011) ($97B exports and $107B imports).

->Vietnam’s economic growth performance could be

considered one of the most spectacular in the developing
world.
2021:
- Export turnover: $116B (↑32% than same period of 2020)
- Import: $102.6B (↑38.7% than same period of 2020)
- Exports to the US: ↑42.6% - $44.9B
- Exports overall: expanded 28.4% - $157.63B

-> GDP expanded 5.64% in the first half of year

 wto

world trade organization

On January 11, 2007, Vietnam officially became the WTO's 150th
member, entering a new chapter in the country's global economic
integration.
 ftas

free trade agreements

 03
pros and cons
03
achievements
 Fta's achievements

EUVFTA:
- 65% of EU exports to VN and 71% of
Vietnamese exports to the EU became tariff-
free.
- In the first six months of 2021, the value of
EU-VN trade reached $27B which represents an
increase of more than 18% compared to the
same period in 2020.
-> A remarkable achievement in the midst of a
global pandemic
Fta's achievements

Hongkong investments
- At the end of 2019, Hong Kong was the
second biggest investor in VN.
- Hong Kong businesses have invested more
than 1,300 projects in VN on key sectors such
as textiles and garments, real estate and
investments.
- VN is Hong Kong’s third largest trade partner
and biggest export market in ASEAN. In the
first five months of 2019, Hong Kong
accounted for 30.4% of total FDI investment in
VN, equaling US $5.08B.
 Wto's achievements
 Export
 Import
 Balance of trade
Export
import
Balance of trade
In 2021: Vietnam posts trade surplus of 4 billion
USD in 2021
 up 22.6%

$668.5 billion
Trade value

35 export
categories US, China, South
Korea, Japan
drawbacks

1. Export growth is
rapid but not stable
4. Heavy reliance on Asian
market
2. Unstable process of
market restructuring
5. Unbalanced import
3. Greenhouse gas proportion
concerned
 04
policy implications
 Free trade and multilateral trading
Have an appropriate trade policy in
system/economic integration/FTAS’
place
opportunities

Strengthen the State's management

Follow WTO and other bilateral
Periodically review new regulations role in currency exchange rate
trade commitments
situation

Assisting businesses in optimizing

Strictly classify low-quality goods
their capacity in today’s world
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