Vietnam Jan-October trade deficit with China hits record high of $29 billion

23-Nov-2019 Intellasia | HanoiTimes | 6:02 AM Print This Post

The US-China trade war may be behind such a record figure.

Vietnam’s trade deficit with China hit a record high of $29 billion in the first ten months of 2019, an increase of nearly $9 billion over the same period last year, according to the general Department of Vietnam Customs (GDVC).

In the January October period, Vietnam spent over $62 billion on importing goods from China, up 16.1 percent year-on-year and accounting for 29.6 percent of the country’s total imports. While the imports increased sharply, Vietnam’s exports to China were about $33 billion, down 1.4 percent year-on-year or about $500 million, accounting for 15 percent of total exports.

Vietnam ran a deficit of over $24 billion with its giant neighbour in the whole 2018.

A report from Bao Viet Securities Company (BVSC) attributed the US China trade war to the widening of the deficit. Since the trade war between the two major countries broke out, many experts and regulators warned that Chinese goods would seek to penetrate other markets to compensate the shortfall from the US market. Accordingly, Vietnam with a large consumer market and favourable natural conditions is one of the destinations for Chinese goods, stated BVSC.

In the January October period, the US remained Vietnam’s biggest export market, spending $50.30 billion on Vietnamese goods, up 27.6 percent year-on-year and accounting for 23 percent of Vietnam’s total exports, followed by the European Union with $34.55 billion, down 0.7%, and China with $33 billion, down 1.4%.

Meanwhile, China remained Vietnam’s largest import market with turnover of $62.3 billion, a 16.1 percent climb year-on-year and making up 29.6 percent of total imports

South Korea claimed the second place by exporting $39.43 billion worth of goods to Vietnam, up 0.5 percent year-on-year, followed by Asean with $26.67 billion, up 2.1%.

Vietnam recorded a trade surplus of $1.86 billion in October, leading to a surplus of $9.01 billion in the first 10 months of 2019, up 23 percent year-on-year. This is also a record high figure for the 10-month period.

Customs statistics show that Vietnam’s external trade in October reached U$46.61 billion, up 3.3 percent from September, of which exports were $24.23 billion, up 3.7%, and imports $22.37 billion, up 2.39%.

In the first 10 months of the year, the country’s external trade hit $428.63 billion, up 8 percent compared to the same period in 2018. Upon breaking down, exports totalled $218.82 billion, up 8.3 percent year-on-year, and imports reached $209.81 billion, representing an increase of 7.7%.

In October, foreign-invested companies posted a total import-export value of $28.93 billion, including $16.44 billion in exports, up 1.4 percent from September, and $12.48 billion in imports, down 4%.

Between January and October, foreign direct investment (FDI) companies recorded a trade turnover of $271.13 billion, accounting for 63.3 percent of the country’s and up 4.3 percent from the same period last year. Meanwhile, the domestic sector recorded a trade value of $157.5 billion, or 36.7 percent of Vietnam’s total trade revenue, up 14.9 percent year-on-year.

The FDI sector posted exports of $149.83 billion in the January October period, up 4.8 percent year-on-year, accounting for 68.5 percent of Vietnam’s exports, while the sector imported goods worth $121.3 billion during the period, up 3.7 percent year-on-year, accounting for 57.8 percent of total imports.

This resulted in the sector’s trade surplus of $28.53 billion during the period.

http://hanoitimes.vn/vietnams-trade-deficit-with-china-hits-record-high-of-us29 billion-in-jan-oct-300233.html

 


Category: Economy, Vietnam

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