Bilateral Trade gets a boost by service exports from Austria and Goods exports from Vietnam

While postponed investment and the harsh lockdown in summer 2021 in Vietnam sent Austria's direct exports to a five-year low last year, both import of goods from Vietnam and Austrian export of services have reached record levels. In addition, more and more Austrian products find their way to Vietnam through other ASEAN or East Asian countries.

Austrian companies are successful in Vietnam primarily with mechanical engineering products, engineering services, chemical products and processed goods, but the range of export products has been broadening for several years.

The volume of Austrian service exports to Vietnam rose rapidly in 2021 (EUR 238m from Q1 to Q3 alone) and for the first time exceeded the export volume of goods (EUR 182m for the whole year).

In 2021, Austrian goods exports fell 28% below the pre-pandemic level due to difficulties in project and business development in the era of travel restrictions as well as a slow-down or postponement in investments in several key sectors in Vietnam. In addition, the volume of indirect exports via third countries is on the rise due to deeper integration of Austrian production and trade companies in regional value chains.

By the end of 2021, with the beginning opening of Vietnam, a clear trend reversal in goods exports is visible. Rising household incomes, the development of the local industry and value chains as well as the EU-Vietnam Free Trade Agreement (EVFTA) are positive drivers for Austrian exports.

In addition to trade liberalization, Vietnam's increasing attractiveness as a sourcing market is responsible for the increase of 24 % of Vietnamese exports to Austria (EUR 1.2 billion).

Data source: Austrian National Statistics Office (preliminary data)