• Advantages

Many of Vietnam's key export products to New Zealand (clothing, wooden furniture, fresh fruit, etc.) only account for a relatively limited market share in New Zealand's total imports. However, the export value of these items from Vietnam to New Zealand has tended to increase significantly in recent years, which shows that the room and potential for exporting Vietnamese goods to New Zealand is still very large.

In the coming time, Vietnam's exports to New Zealand are forecast to continue to grow thanks to favorable factors such as:

- With the recession and rising inflation due to the impact of the COVID-19 pandemic and the Russia-Ukraine conflict, New Zealand consumers are increasingly concerned about price when making shopping choices. Therefore, their demand for affordable products from developing countries like Vietnam is also increasing. With the advantage of tariff incentives from the 03 common FTAs ​​of the two countries, Vietnam has every opportunity to increase its market share in New Zealand.

- New Zealand consumers are also more open to using imported products (including Vietnamese products) as long as the imported products meet quality requirements and have competitive prices.

- The quality of Vietnamese products is increasingly improving and gradually conquering many demanding markets. Many large Vietnamese enterprises have invested systematically and long-term in the production and export of high-standard goods to developed countries - markets with strict requirements on product quality and design. In addition, Vietnam is also focusing on attracting high-tech investment in potential industries but with outdated technology such as vegetables, fruits, seafood, etc. to improve the quality of export products.

- The development of e-commerce platforms and the increase in purchasing foreign goods through online shopping channels help Vietnamese goods easily access the New Zealand market.

• Disadvantages

Besides the advantages, exporting goods from Vietnam to New Zealand also faces certain difficulties:

- The structure of Vietnam's main export goods is not highly complementary to the structure of New Zealand's import goods. New Zealand has a high demand for importing mineral fuels, vehicles of all kinds, optical equipment, pharmaceuticals, aircraft, etc. Meanwhile, Vietnam has strengths and exports a lot of footwear, clothing, furniture, seafood, etc. Thus, Vietnam's strengths are not the goods that New Zealand has a high demand for.

Table 1 - Comparison between the top 10 products imported by New Zealand with the top 10 products exported by Vietnam to New Zealand in 2023

Source: ITC Trademap, 2024

- New Zealand is a demanding market, this country requires import licenses for many types of goods (such as agricultural products, food, pharmaceuticals, chemicals, etc.), and also sets strict regulations on animal and plant quarantine, technical standards for imported goods, etc. This poses a big challenge for Vietnam's exports because if they do not meet the regulations/requirements from New Zealand, Vietnamese goods will be refused to be imported into this country.

- Although it is a small market, the level of competition in New Zealand is relatively large, with many competitors in the same region such as China, Japan, Korea and some ASEAN countries (Singapore, Malaysia, Thailand). These countries have a structure of goods exported to New Zealand quite similar to Vietnam, so the level of competition is even higher. In addition, countries that have FTAs ​​with New Zealand and countries that enjoy New Zealand's GSP preferential mechanism also create certain competitive pressure on Vietnamese goods in this market. Furthermore, even in areas where Vietnamese products have strengths, Vietnamese goods do not necessarily have an advantage in terms of quality, diversity and brand compared to these competitors.

- The cost of producing and exporting goods to the New Zealand market is relatively high. The cost that Vietnamese enterprises must pay to ensure compliance with New Zealand's requirements/regulations can be significantly higher than many other export markets. Furthermore, the long geographical distance between Vietnam and New Zealand makes the cost of transporting goods from Vietnam to this country more expensive than that of Vietnam's traditional export markets in the Asian region such as China, Korea and ASEAN countries.

Source: Center for WTO and International Trade

• Market size of New Zealand
• Trade activities of New Zealand
• Consumer characteristics in New Zealand
• Characteristics of New Zealand’s distribution system
• Vietnam’s exports to New Zealand