Vietnam posts trade deficit of US$1.47 billion over six-month period
VOV.VN - The nation recorded an estimated trade deficit of US$1.47 billion during the first half of the year, according to figures released by the Ministry of Industry and Trade (MoIT).
Statistics compiled by the MoIT indicate that the country raked in US$157.63 billion from exports, a rise of 28.4% compared to the same period from last year, with 25 items grossing an export turnover of over US$1 billion, accounting for 88.9% of total export turnover.
Furthermore, import turnover recorded a surge of 36.1% to US$159.1 billion during the reviewed period, marking a rise of 36.1%.
Tran Thanh Hai, deputy director of the MoIT’s Import-Export Department, revealed that the Vietnamese trade deficit in the first half of the year does not represent a worrying sign due to the figure being quite small, making up only 1% in comparison to export turnover.
According to insiders, the impact of recent outbreaks of the COVID-19 pandemic in localities such as Bac Giang, Bac Ninh, Hanoi, and Ho Chi Minh City, have impacted the group of electronic goods, which represents the country’s key export items, thereby leading to a decline in production output.
Moreover, the country has also been active in importing raw materials for textile, footwear, and wooden furniture sectors until the end of the year, a factor which has led to a rise in import turnover.
Upon sharing the same viewpoint, Dr. Le Quoc Phuong, former deputy director of the Industry and Trade Information Center, assessed that the Vietnamese trade deficit of 1% throughout the reviewed period is not a matter of great concern.
He went on to reveal that Vietnam represents a developing country and is on the pathway of industrialisation and modernisation which has led to a high demand for imports. Dr. Phuong noted that the Vietnamese economy has mainly relied on assembling and outsourcing which has resulted in an increase in the import of spare parts and raw materials.
According to the MoIT, export activities have continued to record a high and sustainable growth rate due to exports of key items, such as electronics, textiles, footwear, machinery and equipment, and seafood, to major markets such as the United States, China, and the EU enjoying robust growth.
Recently, domestic enterprises have taken full advantage of opportunities presented by several bilateral and multilateral trade agreements.
Hai therefore expressed his hope that, providing the COVID-19 pandemic is swiftly brought under control over the next few months in the hardest hit localities, production activities can be restored and thrive over the remaining months of the year.
Economists have emphasised that import and export activities are anticipated to continue to prosper in the near future following the effective enforcement of free trade agreements (FTAs), especially new-generation FTAs such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU-Vietnam Free Trade Agreement (EVFTA) and the UK-Vietnam FTA (UKVFTA).
These FTAs are anticipated to create favourable conditions for Vietnamese goods to penetrate partner markets whilst enjoying preferential tariffs, thereby promoting greater export growth.
Local firms are advised to enhance their competitiveness and adaptability as a better way of overcoming difficulties, while devising new strategies to effectively seize upon opportunities in the new context.
