Vietnam strives to maintain sustainable trade surplus

06-Jan-2022 Intellasia | VOV | 5:02 AM Print This Post

Vietnam posted a trade surplus for the sixth consecutive year, a move that has significantly contributed to stabilising the macro-economy, curbing inflation, and helping the local economy to gain more foreign currency reserves, according to experts.

Prof Dr Hoang Van Cuong, member of the National Assembly (NA)’s Finance and Budget Committee, pointed out that the expansion of foreign reserves has contributed to ensuring continued macroeconomic stability, maintaining the value of VND, while simultaneously creating a premise in which Vietnamese products are able to secure a firm foothold within the global market.

Assoc. Dr Pham Tat Thang, a senior expert at the Vietnam Institute of Industrial and Trade Policy and Strategy, revealed that the nation has maintained its trade balance in recent years, enjoying a trade surplus of roughly $20 billion in 2020 and $4 billion in 2021.

Most notably, the nation has been able to reduce the export of items that can be considered national resources, such as crude oil and coal, all of which have contributed to preserving natural resources for the country, Dr Thang noted.

Especially, despite the agricultural sector importing inputs such as animal feed, fertilisers, and pesticides, has been one of the most important pillars of the domestic economy, racking up a trade surplus in the process.

Senior expert Dr Nguyen Minh Phong, emphasized that consecutive years of a trade surplus over recent times can primarily be attributed to achievements in terms of economic restructuring and efforts, which aim to increase the value of export commodities and focus on the manufacturing and processing industry.

Dr Phong underscored the importance of trade surplus in reducing the import of unnecessary goods, restructuring import-export structure, providing fresh impetus for the national economy, and contributing to the state budget, while simultaneously affirming the Vietnamese position within the global market.

Analysts have also highlighted foreign-invested firms’ contribution to local export activities in recent times. Despite the participation of the domestic private sector within the supply chain of multinational corporations and FDI enterprises remaining limited, the continuous trade surplus by the FDI sector has proved the country’s initial success in attracting FDI capital, especially in the processing industries to create high added-value products.

Experts also underlined the necessity of strengthening linkages among domestic enterprises to further get involved in the supply chain of FDI enterprises.

Think tanks also underlined the need to continue exploring high-end markets, such as the United States, the EU, and Japan, to maintain trade surplus in future.

They also stressed the significance of utilising advantages of new-generation and high-standard free trade agreements (FTAs), such as the EU-Vietnam Free Trade Agreement (EVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), in importing high-quality machinery, technology, and input materials for export in the time ahead.

It is anticipated that a focus on exporting high-added value goods will significantly contribute to fulfilling the goal of maintaining a sustainable trade surplus in the long-run, according to economists.


Category: Economy, Vietnam

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