CPTPP to help Vietnam exports grow 10pct amid global uncertainties: Brokerage

26-Apr-2019 Intellasia | Hanoi Times | 6:00 AM Print This Post

Vietnam will face difficulties in exporting as global growth is slowing down, dragged down by China. Electronics and mobile phones also run into difficulties with a global saturation.

Amid unfavourable global economic conditions, Vietnam’s exports are expected to keep growing 5 10 percent thanks to the enforcement of the Comprehensive and Progressive Trans Pacific Partnership (CPTPP), according to Bao Viet Securities Company (BVSC).

BVSC’s latest report suggested Vietnam will face headwinds in exporting as global growth is slowing down, dragged down by China. Electronics and mobile phones also run into difficulties with a global saturation, with the growth in the first quarter of 2019 being only 7 percent, relatively lower than the previous two years at 20 percent and 40 percent, respectively.

Nevertheless, other free trade agreements (FTAs) and the US-China trade tension will continue buttressing export of processed industrial products, including textiles, footwear, wood, suitcases, and bags, among others. Besides, Vietnam will benefit from the US-China trade war as the US may restructure their import of goods to Vietnam, stated BVSC.

Preliminary statistics of the general Department of Vietnam Customs revealed that the country turned to have a trade deficit of $746 million in the first half of April.

As of April 15, the country’s export turnover reached $68.55 billion, up 5.7 percent year-on-year, while imports hit $64.53 billion, up 4.5 percent year-on-year. The sharp increase in imports resulted in a $750 million trade deficit in the first 15 days of April. As such, Vietnam has posted a trade surplus of over $600 million so far this year.

The trade deficit in automobile and machinery, spare parts and electronic components increased strongly. However, Vietnam’s trade balance has fluctuated between reporting periods. While the first 15 days of January saw a trade deficit of almost $1 billion, toward the end of January, trade surplus hit $800 million. Therefore, preliminary statistics for the first half of April might not reflect April’s trend, BVSC continued.

The FDI sector reported exports worth $47.69 billion as of April 15, up 3.6 percent year-on-year or 69.6 percent of total Vietnam’s exports, while imports reached $39.2 billion, up 6.3 percent year-on-year or 57.7 percent of the totals.

http://www.hanoitimes.vn/economy/2019/04/81E0D608/cptpp-to-help-vietnam-exports-grow-10-amid-global-uncertainties-brokerage/

 


Category: Economy, Vietnam

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