Vietnam foresees continued trade deficit in 2016
Vietnam is predicted to continue running a trade deficit in 2016 that will be under 5% of total export revenue, according to the Ministry of Industry and Trade (MoIT).
At a teleconference on June 6, Director General of the MoIT’s Planning Department Vu Ba Phu said the country recorded a trade deficit of about US$400 million in May.
Although there was a trade surplus equivalent to 2% of total export value in the first five months, demand for imported machinery and materials for infrastructure building is still high.
There is also a growing need for industrial equipment imports to expand production and optimise opportunities brought about by many free trade agreements that the country has joined in. |
From January to May, Vietnam posted a trade surplus of US$1.36 billion as a result of some US$67.7 billion in exports (up 6.6% year on year) and US$66.3 billion in imports (down 0.9% year on year).
Notably, overseas agro-forestry-fishery shipments during the five months rose by US$818 million or 10.1% from a year earlier, compared to a 10% decline in the same period last year.
China remained the biggest exporter of goods to Vietnam during the five months, posting a turnover of US$19.2 billion, dropping by 2.9% annually.
To attain an export growth rate of 10% this year as targeted by the National Assembly, the MoIT should devise measures for tackling business obstacles and improving production capacity, MoIT Minister Tran Tuan Anh said.
