Main competitors of Vietnamese goods in New Zealand
- The largest importing sources of New Zealand
Asian countries: Due to being located in the Asia-Pacific region with many favorable conditions for trade, New Zealand tends to import a lot of goods from countries/territories in Asia. In 2023, total imports of goods from countries in this region accounted for 56.5% of New Zealand's total import turnover (2023 data from ITC Trademap). Notably, in the top 10 largest import partners of New Zealand, more than half of the countries/territories are in Asia, accounting for 48.1% of the country's total import turnover.
Australia, United States, Germany, United Kingdom: As countries with many similarities in culture, language, or historical ties with New Zealand, Australia, the United States, Germany, and the United Kingdom are also the largest export partners to the New Zealand market.
The above partners currently dominate New Zealand's import market for most goods (especially raw materials, machinery, equipment, components, etc.). Among these import partners, many are large economies with high competitiveness and many export products similar to Vietnam's. Therefore, Vietnamese goods are assessed to face a relatively high level of competition when entering the New Zealand market.
Table 1 - Top 10 importing sources of New Zealand in 2023
|
No. |
Importing partner |
Import value in 2023 (billion USD) |
Proportion in New Zealand’s total imports (%) |
|
1 |
China |
10.33 |
20.70% |
|
2 |
Australia |
5.38 |
10.77% |
|
3 |
United States |
4.90 |
9.82% |
|
4 |
South Korea |
3.72 |
7.44% |
|
5 |
Japan |
3.33 |
6.66% |
|
6 |
Singapore |
2.78 |
5.57% |
|
7 |
Germany |
2.23 |
4.47% |
|
8 |
Malaysia |
2.02 |
4.05% |
|
9 |
Thailand |
1.83 |
3.67% |
|
10 |
England |
1.31 |
2.62% |
Source: ITC Trade Map, 2024
- FTA partners
By the end of 2023, New Zealand has a total of 12 FTAs in effect (with 28 economies), and is negotiating 05 FTAs with many partners such as UAE, Gulf Council (GCC), India... (New Zealand Ministry of Foreign Affairs and Trade, 2023). Thus, at least currently, goods from 28 FTA partners in effect when exported to the New Zealand market can enjoy tariff preferences under the FTA with New Zealand.
Most of New Zealand's FTA partners are located in the Asia and Oceania regions, with many products similar to Vietnam. Therefore, although sharing 03 FTAs with New Zealand (AANZFTA, CPTPP, RCEP), Vietnam still has to compete fiercely with many rivals, especially economies in the region such as China, ASEAN..., when exporting to the New Zealand market.
Table 2 - New Zealand’s FTA and FTA Partners
|
No. |
Importing partner |
Import value in 2023 (billion USD) |
Proportion in New Zealand’s total imports (%) |
|
1 |
China |
10.33 |
20.70% |
|
2 |
Australia |
5.38 |
10.77% |
|
3 |
United States |
4.90 |
9.82% |
|
4 |
South Korea |
3.72 |
7.44% |
|
5 |
Japan |
3.33 |
6.66% |
|
6 |
Singapore |
2.78 |
5.57% |
|
7 |
Germany |
2.23 |
4.47% |
|
8 |
Malaysia |
2.02 |
4.05% |
|
9 |
Thailand |
1.83 |
3.67% |
|
10 |
England |
1.31 |
2.62% |
Source: New Zealand Ministry of Foreign Affairs and Trade, 2023
- GSP partners
GSP is a unilateral tariff preference mechanism that New Zealand unilaterally grants to least developed countries (Less Developed Countries - LDC) and least developed countries (Least Developed Countries - LLDC). According to the latest regulations in 2023 (Tariff (Less Developed Countries and Least Developed Countries) Order 2023), New Zealand is applying the GSP mechanism to 162 countries/territories (including Vietnam).
Unlike FTAs, GSP is a unilateral preferential mechanism of New Zealand, so New Zealand can change the subjects and conditions for enjoying GSP at any time, depending on New Zealand's policies in each period. In addition, preferential tariffs under GSP are often not as competitive as preferential tariffs under FTAs. However, the tariff reduction under New Zealand's GSP mechanism also creates certain advantages for partner countries enjoying this mechanism.
Source: Center for WTO and International Trade
