VN trade deficit forecast to last

08-Jun-2016 Intellasia | Bizhub | 6:00 AM Print This Post

Vietnam will continue running a trade deficit in 2016 that will be under 5 per cent of total export revenue, the Ministry of Industry and Trade (MoIT) has forecast.

Director general of the MoIT’s Planning Department Vu Ba Phu said at the teleconference held in Hanoi yesterday that the country recorded a trade deficit of about $400 million in May.

Although there was a trade surplus equivalent to 2 per cent of total export value in the first five months, demand for imported machinery and materials for infrastructure building is still high.

There is also a growing need for industrial equipment imports to expand production and optimise opportunities brought about by many free trade agreements the country has joined.

In the first five months of the year, Vietnam posted a trade surplus of $1.36 billion as a result of some $67.7 billion in exports (up 6.6 per cent year-on-year) and $66.3 billion in imports (down 0.9 per cent year-on-year).

Notably, overseas agro-forestry-fishery shipments, during the five months, rose by $818 million or 10.1 per cent from a year earlier, compared to a 10-per cent decline in the same period last year.

China remained the biggest exporter of goods to Vietnam during the five months, posting a turnover of $19.2 billion, dropping by 2.9 per cent annually.

Vietnam mainly imported machines, equipment, mobile phones, computers, fabrics, iron and steel from China.

Vietnam’s exports to China hit $5.8 billion in the first five months of 2016, an increase of 16.5 per cent year-on-year.


Category: Economy, Vietnam

Print This Post

Comments are closed.