Higher exports and lower imports leaves mark on trade deficit with northern neighbor.
Vietnam’s trade deficit with China in the first quarter of this year fell 15.6 per cent year-on-year to $6.5 billion, according to the General Statistics Office (GSO).
China was Vietnam’s second largest export market in the period but its largest import market.
Vietnam exported $3.9 billion worth of goods to China, an 8.2 per cent increase year-on-year. Vegetable exports rose 72.8 per cent while telephones and components were up 77.1 per cent.
The significant increase in exports to China made a dent in the trade deficit.
At the same time, Vietnam imported $10.4 billion of goods from China, an 8 per cent decline year-on-year. The value of imported machinery and equipment was down 13.1 per cent, whereas imported telephones and components fell 18.4 per cent.
The total import value from China has been predicted to come down to $46.5 billion in 2016 from its record high of $49.53 billion in 2015.
Vietnam’s annual trade deficit with China could therefore fall to $28 billion from the record $32.29 billion in 2015.
Vietnam’s overall export value in the first quarter was $37.9 billion, up 4.1 per cent compared to the same period of last year. Import turnover was $37.1 billion, down 4.8 per cent year-on-year.