Vietnam says 7-month trade gap doubles to US$15b
Source: 26-JUL-2008 Intellasia | Reuters
Jul 26, 2008 - 7:00:00 AM Vietnam, which has been struggling to rein in soaring imports amid high world oil prices, estimated its trade deficit in the first seven months of 2008 more than doubled from a year ago to US$15.01 billion.

The General Statistical Office said in a monthly report on Thursday that exports in the January-July period would rise 37.7% from the same period last year to US$36.88 billion, while imports would jump 56.8% to US$51.89 billion.

Vietnam had a trade deficit of US$6.32 billion during the first seven months of 2007.

Exports in July alone were estimated at US$6.25 billion and imports at US$7.05 billion, leaving a monthly deficit of US$800 million, up from a revised monthly deficit in June of US$736 million but still much smaller than May's deficit of US$2.85 billion.

Steel imports, including steel ingots, jumped 96.6% from a year ago to US$5.01 billion.

High steel and construction material prices this year have led to delays in property development projects and slowed demand for housing, officials from the Construction Ministry have said.

The Southeast Asian country, which relies almost entirely on refined oil imports as it lacks refineries, estimated oil product imports in the first seven months jumped 90.7% from a year earlier to US$7.75 billion due to high world crude prices.

This week the government raised retail fuel prices by as much as 36%, the first hike in five months, a move analysts said would raise the risk of even higher inflation and slower economic growth.

Vietnam's inflation raced to multi-year highs this year, hitting an annual rate of 27% this month. The government has cut its 2008 growth target to 7% from 8.5-9%.