UPS RESEARCH FORECASTS TRADE BETWEEN US AND INTRA Asia WILL GROW MORE THAN 40 PER % IN 2023

Trade in Asia’s 12 key markets, also known as Asia-12, currently accounts for 88% of the trade value of the entire Inner Asia region and is expected to double from $6.4 trillion a year. 2020 to 13.5 trillion USD by 2030. Vietnam is developing strongly to become an important manufacturing factory in the region. Over the next decade, Vietnam will increase its position even further with the growth forecast of trade value with members in the Asia-12 region increasing from US$326 billion to US$465 billion by 2030.

Search UPS Intra-Asia Study to download the full report in Vietnamese or English.

Michelle Ho, UPS president for Asia Pacific, Middle East and Africa, said: “Intra-Asian trade has incredible potential over the next decade, thanks to the achievements of these key economies. in the region has been achieved in recent years”.

“Through its global network and strong industry expertise, UPS has been helping Asian governments, industry partners, and key customers navigate the right direction in international trade. economy during the past five decades. This report combines expert knowledge, along with research, to highlight the opportunities and challenges of Intra-Asian trade over the next ten years and beyond.”

Important industry groups contributing to Vietnam’s trade growth

Four industry groups are driving the increase in trade in the Asia-12 region: retail, industrial manufacturing and automation (IM&A), high technology and healthcare. In Vietnam, in 2020, these sectors account for 82% of trade value with the rest of the region.

The high-tech sector is playing a key role in the import sector, accounting for 43% of Vietnam’s trade value with the intra-Asia region, helping to drive future trade growth thanks to increased digitization in markets. countries in Asia-12. Meanwhile, the IM&A sector accounts for 21% of Vietnam’s trade with the region, and is expected to double by 2030 thanks to government support in boosting the manufacturing sector.

In addition, Vietnam’s participation in trade agreements such as the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) allows businesses to Viet Nam has access to many export markets and consumer goods, while minimizing trade barriers.

Stakeholders’ efforts help Vietnam achieve its commercial development potential

Intra-Asian trade offers a lot of potential. However, a number of barriers could slow trade in the Asia-12 region if left unaddressed. In Vietnam specifically, infrastructure constraints in the logistics industry may limit demand-driven supply in developing economies. The logistics industry in our country is strongly fragmented, with 95% being small and medium enterprises (SMEs). This limits the potential for innovation and limits large-scale investment as it will be difficult for SMEs to untie industry bottlenecks.

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Stakeholders need to take practical action to reduce barriers to regional trade and exploit potential opportunities to promote Intra-Asian trade. Businesses with commercial interests in Vietnam and those in the logistics sector need to build resilience against potential risks, and be ready to seize the opportunities presented by the growth of domestic economic trade. Asia brings. This includes supply chain diversification, comprehensive digitalisation, and integration of SMEs into regional supply chains.

“SMEs play a very important role in the Vietnamese economy, and one of the considerations this study highlights is the importance of ensuring that SMEs receive the support they need to take advantage of potential of Intra-Asian trade over the next decade”said Mr. Squall Wang, Managing Director of UPS Vietnam.

“At UPS, we’re doing this by helping businesses achieve digital transformation and simplify shipping. With industry-leading expertise in providing customs brokerage solutions, UPS can help businesses optimize their supply chains and unlock potential opportunities for international trade. We will continue to expand our airline network, with many new flights from Hanoi and Ho Chi Minh City operating over the past three years.”