Vietnam-China Trade Surplus Reaches $68 Billion in 2024

In recent years, based on the Vietnam-China trade statistics for 2024, the trade relationship between China and Vietnam has been flourishing, with Vietnam consistently exporting more goods to China than it imports. However, in 2023 Vietnam imported more goods from China than it exported. Vietnam imports from China were worth $138.24 billion in 2023, while Vietnam exports to China totaled $92.81 billion as per Vietnam export data. This has led to a trade surplus and a trade deficit of $45.43 billion in 2023 according to data from the Vietnam customs database.

The trend continued in 2024, with the trade surplus between the two countries reaching an impressive $68 billion in the first 10 months of the year. Machinery, raw materials, and parts used in legal manufacturing that add value to products—rather than just repackaging completed goods for re-export to the US—make up a large portion of Vietnam imports from China as per the Vietnam import data. Let's dive into the reasons behind this trade surplus and how it benefits both countries.

Complementary Economies Impacting the Trade Surplus

The trade surplus between China and Vietnam can largely be attributed to the complementary nature of their economies. China, with its large manufacturing sector, can produce goods at low prices, making it an attractive market for Vietnamese exports. On the other hand, Vietnam's agriculture-based economy can supply China with products that are in high demand. This mutual benefit has resulted in a strong trade relationship between the two countries.

Strengthening Economic Ties

Over the years, China and Vietnam have worked to strengthen their economic ties through various trade agreements and partnerships. This has led to a notable increase in trade between the two countries, with China emerging as Vietnam's largest trading partner as per the Vietnam-China trade data. The trade volume between China and Vietnam now amounts to billions of dollars each year, highlighting the importance of their economic relationship.

Vietnam-China Positive Trade Balance in 2024

• The latest Vietnam trade data reveals that China and Vietnam have maintained a positive trade balance, with China being the top importer.
• In September 2024, Vietnam exported goods worth $13.4 billion to China, while importing goods worth $9.99 billion.
• This resulted in a trade surplus of $3.43 billion in Vietnam's favor, further strengthening the trade surplus between the two countries.

China-Vietnam Trade Surplus and Volume in the Last 10 Years

Let's take a closer look at the total trade volume and trade balance between China and Vietnam over the past decade:

Year of Trade: 2013

• Total Trade Volume: $50.05 billion
• Trade Surplus: $23.71 billion

Year of Trade: 2014

• Total Trade Volume: $58.56 billion
• Trade Surplus: $28.72 billion

Year of Trade: 2015

• Total Trade Volume: $66 billion
• Trade Surplus: $32.88 billion

Year of Trade: 2016

• Total Trade Volume: $71.98 billion
• Trade Surplus: $28.08 billion

Year of Trade: 2017

• Total Trade Volume: $93.92 billion
• Trade Surplus: $23.14 billion

Year of Trade: 2018

• Total Trade Volume: $106.87 billion
• Trade Surplus: $24.15 billion

Year of Trade: 2019

• Total Trade Volume: $117.01 billion
• Trade Surplus: $34.15 billion

Year of Trade: 2020

• Total Trade Volume: $133.06 billion
• Trade Surplus: $35.32 billion

Year of Trade: 2021

• Total Trade Volume: $165.77 billion
• Trade Surplus: $53.93 billion

Year of Trade: 2022

• Total Trade Volume: $175.32 billion
• Trade Surplus: $59.98 billion

Year of Trade: 2023

• Total Trade Volume: $231.05 billion
• Trade Surplus: $45.43 billion

Implications of the Growing Trade Surplus for China-Vietnam Bilateral Trade

The increasing trade surplus between China and Vietnam has important implications for both countries. For China, this surplus represents a significant increase in exports to Vietnam, indicating a strong demand for Chinese goods in the Vietnamese market. This can lead to increased revenue for Chinese companies and boost the overall Chinese economy.

On the other hand, for Vietnam, while a trade surplus can be beneficial in the short term by providing access to affordable goods and stimulating economic growth, a large and sustained surplus can also raise concerns about the country's trade competitiveness and domestic production capacity. Vietnam needs to strengthen its exports and diversify its trading partners to maintain a healthy balance of trade.

Future Outlook

With the trade surplus between China and Vietnam continuing to grow, it is evident that the economic relationship between the two countries will only strengthen in the years to come. As both countries continue to benefit from each other's economies, there is great potential for further collaboration and mutual growth. The trade surplus of $68 billion in 2024 is just a reflection of the positive trajectory of the China-Vietnam trade relationship.

Conclusion

In conclusion, the trade surplus between China and Vietnam has reached new heights in 2024, with Vietnam exporting more goods to China than ever before. This can be attributed to the complementary nature of their economies and the strong economic ties that have been established between the two countries. As the trade relationship continues to flourish, both China and Vietnam stand to benefit from each other's strengths, leading to mutual growth and prosperity for both nations.

Source : Tradeimex import export data