Bloomberg reported that Vietnam has overtaken Japan to become the third-largest export market for Chinese goods in 2024, with a turnover of 162 billion USD.
According to data from China's Custom, China's exports to Vietnam in 2024 increased by nearly 18%, reaching a record 162 billion USD. This figure surpassed China's total exports to Japan of 152 billion USD, making Vietnam China's third-largest export market.
Bloomberg attributed this surge primarily to the increased exports of technical components from China for assembly in Vietnam, which are then exported to the U.S. and other markets. Electronic components, such as display modules and computer memory, accounted for 8 of the top 10 fastest-growing export items, according to China's Customs data.
Bloomberg noted that, amid efforts by many companies to diversify their supply chains away from China, Vietnam is benefiting significantly from the trade diversion and increased investment. Leading electronics manufacturers such as Samsung Electronics, Luxshare Precision Industry, and Hon Hai Precision Industry (also known as Foxconn) have invested billions of dollars in Vietnam in recent years to assemble products such as AirPods and MacBooks.
In particular, the boom in artificial intelligence (AI) technology and US export restrictions on AI chips have also boosted investment in Vietnam.
According to customs analysis data from NBD, Foxconn began producing NVIDIA's AI chips in Vietnam in 2024, with key components, including integrated circuits and printed circuit boards, originating from China. Most of the assembled products were shipped to the US, boosting Vietnam’s trade surplus with the US to a record level of approximately 106 billion USD in 2024.
“We notice that more and more companies are moving their manufacturing facilities from China to Vietnam to avoid future tariff risks. This has significantly increased the volume of exports from China to Vietnam,” Prof. Dr. Nguyen Mai, Chairman of the Vietnam Association of Foreign Invested Enterprises (VAFIE), told Bloomberg.
However, Prof. Dr. Nguyen Mai said that Vietnam could face higher tariffs and other trade challenges, especially with President-elect Donald Trump returning to the White House. However, the professor remained optimistic, affirming, “We also believe that the incoming administration of President-elect Donald Trump, like the previous administration of President Joe Biden, will recognize the importance of Vietnam in US foreign policy and how both markets can benefit from each other.”
