Vietnam records trade deficit in first half of May as exports drop

Vietnam reported a trade deficit of nearly US$1 billion in the first half of May as exports reached only US$8.22 billion – the lowest level since the beginning of this year (excluding the first half of January when the Tet holiday fell on), the General Department of Customs announced has announced.

vietnam records trade deficit in first half of may as exports drop hinh 0

Only two groups of products posted an export turnover of at least US$1 billion during the period including computers, electronics and components at some US$1.5 billion and telephones and parts at US$1 billion. That brought export earnings of these products total to US$13.6 billion and US$16.4 billion, respectively so far this year.

Several other staples with an encouraging export value were textile and garment with US$828 million, totalling US$9.47 billion to date this year; machinery, equipment and parts with US$753.5 million, totalling more than US$7.5 billion and footwear with US$587 million, totalling US$5.94 billion. 

Meanwhile, the country imported nearly US$9.2 billion worth of goods in the first half of May with computers, electronics and components and machinery, equipment and parts recording respective earnings of US$2.1 billion and US$1.4 billion, according to the department.

Since the beginning of this year to mid-May, the nation’s trade value hit about US$177 billion. Of the total, more than US$89 billion came from exports while the remainder of US$88 billion from imports. That resulted in a trade surplus of more than US$1 billion, the department noted.

The Ministry of Industry and Trade predicted that Vietnam’s export value would increase again in the second half of this year if the pandemic was controlled in the second quarter.

The ministry would continue to give priority to promoting trade connections between Vietnamese enterprises and foreign partners, and the introduction of made-in-Vietnam goods to domestic and international consumers.

Vietnam has set a goal of reaching US$300 billion export value target by the end of this year after four-year trade surplus record. Last year, the country’s trade surplus hit a record high of US$9.9 billion, the highest level seen in the past four years.