Vietnam is becoming a major source of manufacturing goods
Vietnam is becoming a major source of manufacturing goods for the US, according to data from Oslo-based freight rates platform Xeneta. In the last five years, containerized imports from Asia to the US rose by 26%, with Vietnam seeing a growth rate of 156% in containerized trade to the US between 2017 and 2022. China's share of imported volumes into the US has fallen by 10 percentage points from 2017, while Vietnam has almost doubled its share. Foreign investments in China fell to their lowest level in close to two decades in the second half of 2022, whereas Vietnam has seen FDI grow by 61.2% YoY across Q1 2023. American CEOs are evaluating reshoring as a strategy, with 96% considering the move.
The changing trade patterns and geopolitical landscape are having a significant impact on global trade, and freight forwarders are at the forefront of adapting to these changes. As Vietnam continues to grow as a source of manufacturing goods for the US, freight forwarders must be equipped to handle the increasing volume of shipments and ensure seamless logistics. Furthermore, as more companies consider reshoring and diversifying their supply chains, freight forwarders must also be able to provide alternative transportation routes and solutions to meet their clients' evolving needs. As the industry continues to adapt to these changes, it is likely that freight forwarders who are proactive in embracing new opportunities and technologies will be best positioned for success in the future.