Nghe An province leverages FTA agreements to boost exports.

Increased export turnover, expanded export markets.

According to the Department of Industry and Trade, Nghe An's total export turnover in 2024 reached 3.9 billion USD, an increase of 25.8% compared to 2023; of which, the export turnover of goods is estimated at over 3.2 billion USD, an increase of 31.57% compared to 2023, exceeding the annual plan by 16.9%.

Exported goods are quite abundant and diverse, with over 100 items/item groups, many of which have seen significant growth in export value. Several items have experienced substantial growth in export value compared to the same period last year, notably: Electronic equipment and components (up 84.4%); Textiles and garments (up 30.1%); Steel sheets and coils (up 29.2%); Electrical wires and cables (up 74.5%); Footwear (up 88.1%); Rice (up 75%),...

The export market has been steadily growing over the years. In 2024, businesses in the province exported goods to markets in 150 countries and territories.

Export turnover to several markets increased sharply compared to the same period last year, notably: Hong Kong (up 87.5%); Taiwan (up 68.4%); Japan (up 28.8%), South Korea (up 16.7%), Germany (up 47.7%), Singapore (up 111.5%),... New markets are continuously expanding and being explored by businesses, such as: Mozambique, Serbia, Tunisia, Rwanda, Belize, Benin, Mauritania, Dominican Republic, Maldives, Paraguay,…

Exports to markets with Free Trade Agreements (FTAs) reached US$2.76 billion, a 28.4% increase compared to 2023 and accounting for 86.3% of total merchandise exports. Leveraging the benefits of free trade agreements has helped businesses increase exports, improve their scientific capabilities, and seize new opportunities.

In particular, the proportion of raw, unprocessed goods decreased, while the proportion of industrial and processed goods continued to increase. Currently, the processed and manufactured industrial goods group is the province's main export item group with a turnover of over 2.9 billion USD, accounting for 90.1% of total export turnover (in 2023 this rate reached 87%), an increase of 30.8% compared to 2023.

More and more businesses have recognized the need to participate in global value chains and supply chains; they are setting stricter requirements for technical aspects and technological systems to meet product, business management, and labor demands. Some businesses in the textile, footwear, and electronics industries are currently adopting green production requirements from the international market.

For agricultural products, many value chain-based agricultural production models have been developed, improving harvest yields and brand value.

Processed agricultural products from the province are moving towards sustainability. Some OCOP products from Nghe An have met the mandatory standards and regulations, creating a foundation and opportunity for export to international markets. Notable brands include: fine art wood products from Duc Phong Co., Ltd., Van Phan fish sauce, Dien Chau peanuts, Quynh sea seafood, BOMETA honey, etc. Products such as instant eel vermicelli, vegetable noodles, nut milk, etc., have also secured foreign trade contracts with partners in Europe, the United States, Thailand, and other countries.

According to Mr. Nguyen Ho Lam, Deputy Head of the Department of Cooperative Economics and Rural Development of Nghe An province, as of now, Nghe An has 632 products ranked 3 stars or higher in the OCOP program, with 397 businesses. Nghe An ranks second nationwide in the number of products recognized with star ratings (after Hanoi). Many of the province's OCOP products are exported to demanding markets such as France, Germany, the Netherlands, Sweden, Denmark, the United States, Japan, South Korea, and Singapore. Many businesses have proven the quality of their products.

Maximize the opportunities offered by FTAs.

In 2024, export businesses faced significant market challenges due to major political and economic fluctuations worldwide, which not only affected consumer markets but also increased logistics costs for export businesses.

Rising inflation and tightening spending in key markets such as the EU and the US have led to reduced purchasing power and import demand, resulting in a sharp drop in orders for items such as fishmeal, cassava starch, handicrafts, wood pellets, and processed fruits.

In 2025, many factors, both favorable and challenging, will affect export activities. Global economic and trade growth has been recovering. China, the world's second-largest economy and a key market for Nghe An's export businesses, has implemented strong monetary stimulus measures and a fiscal stimulus package expected to reach US$1.4 trillion to achieve its growth targets.

The increase in foreign investment in Nghe An in recent times promises to enhance production capacity and create a supply of goods for export. The export market is expected to continue to expand and diversify as partner markets with preferential tariffs under the FTA continue to reduce tariffs according to schedule.

According to assessments, exports in 2025 will still face many unpredictable risks. The crisis in the Middle East has been affecting global and Vietnamese freight transport; shipping times and costs, as well as insurance, have increased. The trend towards trade protectionism is becoming more prevalent, with many countries implementing measures to bring investment back home and erecting trade barriers. Developed markets like the EU are focusing on sustainable development and are currently introducing new regulations such as the Carbon Adjustment Mechanism and the European Regulation on Deforestation.

To achieve the target of $4 billion in merchandise exports by 2025, as well as the goals set for the entire 2021-2025 term, Mr. Pham Van Hoa, Director of the Department of Industry and Trade, stated that the sector has implemented numerous solutions to support and collaborate with businesses. These include diversifying export markets, effectively exploiting market opening opportunities through supply-demand linkages, organizing business delegations to participate in trade fairs, exhibitions, conferences, and forums to connect supply and demand, and facilitating trade in major export markets and regions that have signed FTAs ​​with Vietnam.

Strengthen the exploration of new and potential markets (Eastern Europe, Northern Europe, the Middle East, Africa, Latin America, etc.) for the province's export products, especially OCOP products. Promote exports according to priority product groups in each stage, in line with developments in the global economy, and take advantage of opportunities in both international and domestic markets.

Review and support the acceleration of investment attraction projects aimed at production and export, especially key industrial projects of the province that create a large supply of goods for export, such as: automobile manufacturing and assembly; electronic component manufacturing projects, etc.

Continue to innovate in trade promotion, encouraging businesses to boost sales through e-commerce platforms such as Amazon and Alibaba. Support businesses in building brands, designing packaging suitable for international customers, and establishing online stores on e-commerce platforms to gradually create an image and market share for Nghe An goods in the global market. Simultaneously, mobilize resources to invest in transportation infrastructure connecting logistics services.