Import of gasoline of all kinds increased by 128.4%

According to data from the General Department of Customs , total import-export turnover between Vietnam and Malaysia in the first 4 months of 2024 reached 4.9 billion USD, up 21.4% over the same period last year. Of which, Vietnam's export turnover to Malaysia was 1.66 billion USD, a slight decrease of 0.16% over the same period, import turnover reached 3.24 billion USD, a sharp increase of 36.5% compared to the same period. same period.

In the first 4 months of 2024, Vietnam's imports of gasoline of all kinds from Malaysia increased by 128.4% over the same period

Exports remained almost unchanged but imports increased very strongly and the absolute value of import turnover was nearly double that of exports, showing that the trade deficit from Malaysia became a matter of concern.

Specifically, the trade deficit is nearly equal to the export turnover, up to 1.58 billion USD, an increase of nearly 121.7% over the same period. However, if we look closely at each item, we can see that the basic reason is that Vietnam has sharply increased imports of petroleum products and liquefied petroleum gas from Malaysia, causing the trade balance to tilt strongly in your favor.

Specifically, imports of gasoline of all kinds increased by 128.4% to 936 million USD over the same period, but this item accounted for up to 28.5% of total import turnover. Other items with strong increases were liquefied petroleum gas, which increased by 473.4% over the same period to 135.6 million USD and accounted for 4.2% of total import turnover.

Products accounted for a smaller proportion but increased sharply such as: Other means of transport and spare parts increased by 162.5% over the same period; Rubber products increased by 196.6%; In addition to the items that increased significantly, animal and vegetable oils and fats increased by 41.2%; vegetables, fruits, ores and other minerals; fertilizers of all kinds; products from plastic, rubber,...

Regarding exports , many products grew, especially agricultural products such as rice increased by 59.1% and accounted for 2% of the total export turnover, tea increased by 45.3%, Coffee increased by 110.2% over the same period. In addition, the items that account for a large proportion all have impressive growth rates such as: Phones of all kinds and components increased by 29.7% and account for 10.1%, meanwhile, chemical products increased sharply to 257.6% and accounted for 4%.

Recommendations for export businesses

The Malaysian market has good purchasing power, diverse needs and is close in consumer culture to Vietnamese products. Besides, there is a large market openness and a relatively low level of barriers to Vietnam's exports due to participating in many regional trade liberalization agreements;.... are favorable factors. for Vietnamese goods to enter this market.

However, Vietnamese goods entering this market are facing fierce competition with other exporting countries, especially China, Thailand, Indonesia... because the Malaysian market is relatively open for imported goods.

On the other hand, food items require a Halal certificate while this certification is not managed by Vietnamese state agencies but recognized by government agencies of some Muslim countries. Currently, there is only one non-governmental unit issuing Halal certificates in Vietnam that is recognized by JAKIM (under the Ministry of Religious Affairs of Malaysia). Vietnamese businesses are afraid to access the market due to foreign language barriers, cultural differences...

Many businesses have cases of fraud occurring, reducing trust in trade. Many businesses are afraid to establish distribution channels for their products, send samples, participate in fairs or meet customers in the area and limit investment in product innovation to suit consumer tastes. local consumers, while local consumers are used to coming into contact with competitors' goods.

The Vietnam Trade Office in Malaysia recommends that localities and associations need to strengthen trade promotion activities to bring local manufacturing and export enterprises and association members to participate in trade promotion activities. directly in the Malaysian market such as organizing specialized fairs or synthesizing Vietnamese export products in Malaysia... Coordinate closely with the Malaysian Trade Office in implementing promotion activities in the Malaysian market, especially is partner verification.

For export businesses, before paying for goods or depositing a new business that has not yet met, they need to check the business registration information of the business, including business name and business registration number. and send the transaction for verification.

Food exporting businesses need to pay attention to exporting Halal-certified food products to the Malaysian market due to the large proportion of Muslims in Malaysia and only choose Halal-certified products. In addition, Malaysia is strengthening control over the cost of living due to the lack of supply of some types of food. Businesses that produce products for essential needs such as eggs, rice... should pay attention to connecting to the powder system. coordinating to increase exports...