Standard Chartered: Vietnam is emerging as an important manufacturing base, exports will reach 535 billion USD by 2030

According to a report by Standard Chartered Bank entitled “The Future of Trade 2030: Trends and Markets to Watch Out for”, total global exports will nearly double from US$17.4 trillion to US$29.7 trillion in next decade.

The report also outlines 13 markets that will make a major contribution to this growth, key trade corridors and five trends shaping the future of global trade. Vietnam is an important contributory market.

According to Standard Chartered, Vietnam's total export turnover is expected to record an average growth of more than 7% per year and reach more than 535 billion USD by 2030.

According to the same report, 41% of global enterprises surveyed currently have production activities in Vietnam or plan to manufacture in Vietnam in the next 5 to 10 years. This shows that Vietnam will be one of the important drivers of global trade growth in the next 10 years.

In the above outlook, the United States and Mainland China are forecasted to continue to be the largest export markets of Vietnam, accounting for 26% and 19% of total exports by 2030, respectively. India is The market can bring Vietnam high export growth, reaching an average of 11% per year from 2020 to 2030.

Areas with high export growth potential

With international trade on the rise, Vietnam is emerging as an important manufacturing base. The following sectors will make large contributions to exports by 2030:

Vietnam is one of 13 markets that play a role in promoting global trade growth

“With the advantage of an abundant labor force, a geographical location close to major global supply chains and an open policy to foreign direct investment, Vietnam is emerging as a manufacturing hub. of the world, attracting foreign enterprises to invest. Increased integration into the world economy through free trade agreements such as Vietnam - EU, Vietnam - UK, CPTPP and RECP is bringing Vietnam many advantages, helping to promote exports , strengthen the value chain in the fields as well as create jobs requiring high skills.

We are optimistic about the future growth of Vietnam's trade and always strive to take advantage of our international network and deep understanding of the domestic market to support this process. ", Ms. Michele Wee, General Director of Standard Chartered Bank Vietnam, shared.

The report is based on an export forecasting economic model, which includes a survey of more than 500 senior leaders of global businesses.

According to the report, global trade will be shaped by five key trends: the widespread adoption of fair and sustainable trade standards; the participation of many economic sectors, the risks are more diversified; increased digitization and rebalancing towards high growth emerging markets.

About 90% of business leaders surveyed agree that these trends will shape global trade and guide their cross-border expansion strategy over the next five to 10 years.

Globalization will drive growth over the next decade. Although growth with a focus on the domestic market has been accelerated recently, future trade corridors will not only be confined to the region but will reach out globally, such as Africa – East Asia, ASEAN – South Asia, East Asia – Europe, East Asia – Middle East, East Asia – Europe, South Asia – USA.

Asia, Africa and the Middle East will see an increase in investment capital. 82% of those surveyed said they are considering placing new manufacturing sites in these regions in the next 5 to 10 years. This supports the trend of rebalancing in emerging markets and a broader level of supply chain risk diversification.

Promoting a sustainable supply chain

The report points to an important trend that is the rise of smart consumption and the adoption of sustainable commercial standards to address climate change concerns. 90% of business leaders surveyed agree with the need to apply these standards in the supply chain, however, only 34% of them put this issue in the top 3 of the priorities that need to be prioritized. implemented in the next 5 to 10 years.

With a commitment to promoting sustainable global trade and the transition to a zero-carbon model, Standard Chartered has launched a sustainable trade finance program to support construction businesses. more sustainable supply chains. In addition, the Bank also provides a full range of sustainable financial solutions to help businesses realize their zero carbon emissions goals.

Simon Cooper, Head of Corporates and Financial Institutions and General Manager of Europe and Americas, Standard Chartered Bank, said: “Global trade is expected to double. This is a testament to the ongoing process of globalization. In addition to the growth of intra-regional trade activities, future trade corridors will still take place between continents.

“In this context, our focus continues to be on helping markets and businesses reap the benefits of globalization, from small businesses to multinationals, and promoting a a more inclusive and sustainable global trade model. We are constantly developing sustainable financial solutions to help corporate customers effectively apply sustainable and fair trade models in the supply chain."

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