The pandemic has brought about numerous changes in virtually every aspect of our lives. However, despite that our world is gradually returning to normalcy, the disruption has left many exporters in Vietnam confused about profitable products to export and how to expand their online business in 2022.
This article examines exporting opportunities for Vietnam in 2022. We also cover the new Regional Comprehensive Economic Partnership (RCEP) set to take effect by January 2022 and explore the numerous opportunities it will bring to you as a Vietnam seller.
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Vietnam's economy faced difficulties with a surge of the COVID-19 Delta variant that challenged the economy's strength. The spoils of COVID-19 sent the GDP dropping 6.17% in the third quarter of the year, which is by far the worst underperformance since the government began monitoring the figures.
Before the COVID-19 outbreak, the Vietnam economy thrived due to a competing minimum wage and cost-effectively priced utilities, boosting foreign direct investment in the manufacturing sector. The economy suffered a blow from the pandemic, but Premier Pham Minh Chinh spoke on the economic GDP; he predicted gross domestic product next year would expand in a range of 6% to 6.5%.1
Exporting in Vietnam comes with arrays of benefits. As a seller, you stand a chance of increasing your gain, thanks to Vietnam's ease of registration, seamless legal entity, and flexible license permit requirements.
We examine four exporting opportunities due to beneficial policies on export in Vietnam:
As an eCommerce seller interested in exporting products from Vietnam, you are not mandated to have separate export and import licenses to trade. If you want to engage in the distribution of goods outside Vietnam, you only have to establish a trading company, and you are good to go.
Compared to other countries, this is a highly affordable establishment setup as you don't have to provide minimum capital requirements. Source the right products, connect with a reputable eCommerce platform, and start earning.
Unlike importation to Vietnam, most of the goods and services exported from Vietnam are exempted from paying taxes. However, some items are required to pay export duties ranging from 0 to 45%. These are mainly natural resources, including forest products, scrap metals, and minerals.
As a member of ASEAN, Vietnam is a part of several Free Trade Agreements (FTAs) with world economic powers. However, the mouth-watering agreement that will leave many eCommerce sellers licking their lips with improved earnings is the newly effected Regional Comprehensive Economic Partnership. The RCEP will be fully implemented by January 1, 2022.2This denotes that Vietnam further strengthened the reduction of trade barriers with improved market accessibility for exported goods.
The RCEP boasts a market size of $26.2 trillion in global output with 2.3 billion people actively involved.3 As forecasted by the World Bank, countries partaking in RCEP will have their gross domestic product (GDP) increase by 1.5%.
The agreement will establish a new relationship in the global economy where up to 90% of tariffs on export will be eliminated. As a seller looking to explore opportunities from eCommerce in Vietnam, you can rest assured of optimizing your revenue in 2022, knowing you are parting with 10% or less of your income.
So, if you are looking to maximize profit, you might want to consider exporting textile in 2022. Many sectors such as electronics and consumer goods, textile, agriculture, and fishery products are all set to be the biggest beneficiaries of RCEP.
It's possible to enjoy priority treatment, whether as a company or SME venturing into exporting. The priority custom treatment scheme qualifies you for a wide range of benefits. These include exemption from physical inspection of goods, the possibility of submitting incomplete customer declarations, and prioritized access to performing tax formalities.
Kindly note that you will be required to submit the complete customs declaration within 30 days of registering incomplete custom declaration or documentary evidence in place of customs declaration.
The priority gives you a head start; with that, you can start carrying out transactions even before you complete your custom documentation the moment you apply for priority custom treatment.
It can be tricky to decide what product to export, especially with the new changes emanating from RCEP. You have to perform comprehensive market research and make correct predictions on hot products. We understand that can be overwhelming, and that's why we have done the arduous task of researching the top products to sell as an exporter in Vietnam in 2022.
The electronic industry generated a remarkable $10 billion in March 20214, making it the top-performing export industry in Vietnam within that time. This accounts for 21% of the total shipment. With the RCEP and Vietnam's continuous interest in high-tech products, you can expect the electronic industry to continue leading the pace in 2022.
The textile industry accounts for 12% of Vietnam's total export in 2021. That translates to almost $2.5 million in revenue in March 20215. With the major partners of Vietnam demanding more sustainable wear that is obtainable from the textile industry, we forecast 2022 to follow suit.
Vietnam remains one of the major powerhouses for agricultural products and seafood globally. According to a report, the agricultural and fishery market size is expected to reach 6 million tons by 2026.6 The increased production is majorly driven by global demand for Vietnam's aquaculture products.
Like electronic components, there will be a higher local production and export of computers and electrical products in Vietnam by 2022. Currently, it accounts for 7% of the total shipment.
Vietnam's shoes and footwear sector is showing a strong rebound after nose diving in 2020. The industry generated exports amounting to $10.4 billion in the first half of 2021. This connotes a 27.8% rise per year. Expect the growth to continue in 2022.7
With all FTAs, notably the Regional Comprehensive Economic Partnership, about to take effect in full force in a few weeks, 2022 will be the biggest year for exporters in 2022. Companies, SMEs, and individual exporters have everything in place to optimize their revenue while paying less on export duties. As a smart entrepreneur and exporter, now is the time to create a competitive advantage over others by joining an eCommerce platform that provides all the resources you need to succeed.
If your goal is to achieve financial freedom in 2022 by taking your exportation business global with tools and a ready-made audience for your products, then sign up as a seller on Alibaba.com today to reach a global customer base.