The US has surpassed China to become the largest export market of ASEAN member states, marking an important turning point in regional and international trade relations. This change reflects the growth and transformation in economic relationships between ASEAN and its global partners, especially with the world’s two largest economies.
Export market situation in the US
According to data provided by Nikkei Asia newspaper, in the first quarter of 2024, the export turnover of ASEAN member countries to the US surpassed the turnover to China for the first time after 6 consecutive quarters. The total export turnover of 10 ASEAN countries to the US this quarter reached 67.2 billion USD, higher than the 57 billion USD exported to China.
Expert analysis said this reflects the increasing trend of purchasing electronic components and chips from ASEAN, and also shows a decline in China’s economic growth rate.
Among ASEAN countries, Malaysia alone recorded an 8% growth in exports to the US year-on-year, while exports to China decreased by 3.3%.
This data shows a change in ASEAN’s export structure and trade relationship with the world’s two largest markets today.
For Vietnam, the US market accounts for 28% of total export turnover in 2023, China accounts for 17%. In the first quarter of the year, Vietnam’s exports to the US increased by 24% over the same period last year, to 25.7 billion USD – the largest increase among ASEAN member countries and far exceeded Thailand (12.6 billion USD). USD) and Singapore (12 billion USD).
Why did the US surpass China to become the largest export market?
Diversification of the export industry
The US is a large consumer market with diverse needs from consumer goods to high technology. ASEAN has taken advantage of this diversification to export many different items to the US, from agricultural products and food to industrial products and services.
Trade agreement
Trade agreements between the US and ASEAN countries such as the Trans-Pacific Comprehensive Strategic Economic Partnership (TPP) and the Asia-Pacific Comprehensive Strategic Economic Partnership (CPTPP) have created creating a favorable environment for ASEAN exports to the US. These agreements reduce tariffs and trade barriers, helping goods from ASEAN become more competitively priced in the US market.
Supply chain shift
Due to price and supply security issues, many US businesses have sought supply from ASEAN countries such as Vietnam, Indonesia, and Thailand. This has led to an increase in the amount of goods exported from ASEAN to the US.
Specific data from the US Department of Commerce (U.S. Department of Commerce) and ASEAN show that the export value from ASEAN to the US has increased to a record high in recent years. In 2023, the total export value from ASEAN to the US has reached 250 billion USD, an increase of about 15% compared to the previous year. This demonstrates the strong increase in the export market from ASEAN to the US and the shift of the supply chain into this region.
Vietnam takes advantage of export opportunities to the US market
Vietnam has had a significant increase in exports to the US market by developing and diversifying its product portfolio exported to the US, including items such as textiles, footwear, electronics, wood and wooden products, agricultural products, aquatic products, and household items.
Vietnam is a member of the CPTPP (Asia-Pacific Comprehensive Strategic Economic Partnership Agreement) and the Vietnam-US Free Trade agreement (EVFTA), which has helped reduce tariffs and trade barriers. trade, creating favorable conditions for Vietnamese products to enter the US market. Vietnam has become an attractive destination for American businesses to invest in production and assembly, creating demand for purchasing goods from Vietnam for export to the US.
Data from the Vietnamese Ministry of Industry and Trade and the US Department of Commerce show an impressive growth in export value from Vietnam to the US in recent years. In 2023, Vietnam’s export value to the US will reach about 90 billion USD, an increase of 20% compared to the previous year. Key products including electronics, textiles, seafood and agricultural products have contributed much to this growth.
This shows the expansion and diversification of Vietnam’s export markets to the US, and also reflects the strengthening of the trade relationship between the two countries.