Imports rise strongly in first seven months while exports dragged down by falling global prices, increased competition, and poorly-performing domestic exporters.
Vietnam’s trade deficit is estimated to have increased by $300 million in July, bringing the figure for the first seven months to $3.37 billion.
The General Statistics Office (GSO) reported on July 27 that imports increased significantly in the first seven months while exports also rose but to a much lesser extent.
Vietnam’s total import value in the first seven months was estimated to have increased by 16.4 per cent year-on-year, to $95.64 billion.
Imports mainly included machinery, components, and equipment for production and exports.
Import value registered a year-on-year surge of 35.1 per cent for machinery, equipment, tools, and components, to $16.56 billion, 35 per cent for telephones and components, to $6.12 billion, 34.5 per cent for electronic products, computers and components, to $13.89 billion, and 15.1 per cent for steel, to $4.66 billion.
Auto imports rose an incredible 97.9 per cent against the first seven months of last year, to $3.41 billion.
China was Vietnam’s largest import market, with $28.8 billion, a year-on-year increase of 22.5 per cent, followed by ASEAN, Japan, the EU, and the US.
The GSO reported that Vietnam’s export value was expected to show a year-on-year increase of 9.5 per cent to $92.27 billion in the first seven months.
Export value growth was not so high because the export value of the domestic enterprises fell 1.7 per cent, to $27.57 billion, against the same period of last year.
Meanwhile, foreign direct investment (FDI) enterprises contributed $64.69 billion to the total, rising 15.1 per cent.
Key export items fell in volume and value compared with the same period last year, due to falling prices and greater competition in the global market. Coffee was down 33 per cent to $1.65 billion, rice 8.7 per cent to $1.59 billion, seafood 15 per cent to $3.62 billion, and crude oil 47.1 per cent to $2.45 billion.