Vietnam posts trade surplus for eighth consecutive year with US$26 billion

Insiders pointed out that despite numerous challenges, such as shrinking global trade and weak consumer demand in major export markets, the country has successfully seized upon opportunities from the recovery of traditional markets to boost exports.

Thanks to these factors, the nation’s total import-export turnover stood at an estimated US$683 billion this year, of which exports and imports hit US$354.5 billion and US$328.5 billion, respectively.

Experts outlined that the consecutive trade surplus has made a positive contribution to maintaining the overall balance of payments, increasing foreign exchange reserves, and stabilising exchange rate.

Deputy Minister of Industry and Trade Phan Thi Thang said although the global aggregate demand has fallen, Vietnamese export activities continue to overcome difficulties with the export decline being narrowed from 12% in the first half of the year to about 4.6% for the entire year of this year.

Deputy Minister Thang attributed the shrinkage to the export market diversification to African, Eastern Europe, Northern Europe, and West Asian countries.

However, experts outlined that although the decrease in exports continues to narrow, the national economy has not yet fully recovered compared to the same period last year with exports dropping by 4.6% to US$354.5 billion, which has not yet fulfilled the set target of 6%.

The reason is the level of dependence placed on the foreign-invested sector with the export turnover of FDI enterprises accounting for roughly 73% of total export turnover.

Furthermore, the domestic production sector depends heavily on imported raw materials with imports for key product groups dropping sharply.

In line with this, imports of phones of all types and components are estimated to have decreased by by 57.4% compared to last year, while imports of steel and fabric fell by 17.8% and 12.9%, respectively.

Although the trade surplus hit a record of US$26 billion, this positive figure was mainly caused by a sharp decline in imports compared to exports, Deputy Minister Thang noted.

Insiders forecast that the global uncertainties will continue to put pressure on the nation’s industrial production and import-export activities ahead in 2024.

Furthermore, with major economies growing slowly, the global aggregate demand is anticipated to not rebound strongly, thereby affecting export results next year.

As a means of achieving the goals set for 2024, experts underlined the need to support businesses as a means of restoring production, seeking new markets to import and export raw materials as well as spare parts and components for production, and deeply participating in the global supply chain.

Moreover, local firms are advised to effectively tap into free trade agreements (FTAs), diversify export markets, as well as signing new FTAs with other potential partners such as the United Arab Emirates  and  the Southern Common Market MERCOSUR to boost exports.