Việt Nam records nearly $1.47b trade deficit H1

July 03, 2021 - 06:42
Many experts said the current trade deficit was not a cause for concern as Việt Nam mainly imports components and raw materials for production and export. That would be a premise for production and would lead to stronger exports in time to come. 


Bình Dương Province-based Protrade Garment JSC workers make garment products for export to the US. — VNA/VNS Photo Trần Việt 

HÀ NỘI — Việt Nam's trade turnover hit US$316.7 billion in the first half of this year, surging 32.2 per cent year-on-year, according to the Ministry of Industry and Trade.

Of the total, its exports reached $157.6 billion, up 28.4 per cent while imports saw a yearly rise of 36 per cent to $159.1 billion. That resulted in a trade deficit of $1.47 billion during the period. 

From January to June, there were 31 imported products with a value of over $1 billion, accounting for 87.4 per cent of the national total import turnover. They included electronics, computers and components with $33.3 billion, up 23 per cent; machinery, equipment, and spare parts ($22.9 billion, up 37.3 per cent); phones and components ($8.9 billion, up 48 per cent), fabric ($7.3 billion, up 32.3 per cent) and iron and steel ($5.7 billion, up 41 per cent). 

China remained Việt Nam's largest provider of goods with $53.4 billion, up 53 per cent over the same period last year. It was followed by South Korea with $25.2 billion, up 21 per cent; ASEAN countries ($20.9 billion), up 48 per cent; Japan ($10.6 billion, up 12.3 per cent); the EU ($8.1 billion, up 16 per cent) and the US ($7.7 billion, up 9.5 per cent).

Many experts said the current trade deficit was not a cause for concern as Việt Nam mainly imported components and raw materials for production and export. That would be a premise for production and would lead to stronger exports in future. 

Deputy Director of the Import-Export Department under the Ministry of Industry and Trade (MoIT) Trần Thanh Hải agreed. He told the Kinh tế đô thị newspaper that this was a modest trade deficit with many imported items being raw materials to serve production activities, especially in the production of export products.

For example, textile and garment and footwear were industries that had experienced strong growth momentum so the import increase of electronic components, raw materials and accessories for these sectors was inevitable, he said. 

In terms of exports, 25 staples posted a turnover of over $1 billion in H1, accounting for 88.9 per cent of total turnover. Of them, five items earned a value of over $10 billion or 58 per cent of the total, including electronics, computers and components with $23.7 billion, up 22 per cent; machinery, equipment and spare parts ($17 billion, up 63 per cent); textile and garment ($15.2 billion, up 15 per cent) and footwear ($10.4 billion, up 28 per cent).

The US retained its position as Việt Nam's largest export market with a turnover of $44.9 billion, up 43 per cent over the same period last year. China came next with $24.4 billion, up 24 per cent, while the EU ranked third with $19.3 billion, up 17.4 per cent. ASEAN nations, South Korea and Japan were the runners-up with $13.8 billion, up 26 per cent; $10.5 billion, up 15 per cent; $9.9 billion, up 7 per cent, respectively.

According to the MoIT, exports are set to increase by about 21.7 per cent by year-end compared to the year’s respective targets of 4-5 per cent.

To this end, the ministry would continue to give priority to promoting trade connections between Vietnamese enterprises and foreign partners, and the introduction of made-in-Việt Nam goods to domestic and international consumers.

Particularly, it would continue working to promote overseas shipments, diversify both export and import markets, optimise opportunities generated by free trade agreements, and remove barriers to enter new markets. — VNS


Hà Nội posts export growth of 4.5% in H1

HÀ NỘI — Export turnover of the capital city topped US$7.16 billion in the first half of 2021, up 4.5 per cent year-on-year, the municipal Statistics Office estimated.

Some commodities with good export growth include mobile phones and parts ($177 million, doubling the figure in the same period of 2020), footwear ($176 million, up 48 per cent), timber and wood products ($313 million, up 22 per cent), and machinery and spare parts ($885 million, up 17 per cent).

Overseas shipments in the second quarter stood at $3.78 billion, rising 12 per cent from Q1 and 2 per cent from a year earlier.

During the first six months, the city’s gross regional domestic product (GRDP) grew 5.91 per cent from a year earlier, the office said, adding that the GRDP rose 5.17 per cent in Q1 and 6.61 per cent in Q2.

It added the six-month economic growth was faster than the 2.92-per cent pace recorded in H1 of 2020 but still slower than that in the same period of previous years. — VNS