Vietnam Plans to Restrict Imports to Narrow Trade Gap
The Vietnamese Ministry of Industry and Trade (MoIT) is mulling over a plan restricting imports which can be made domestically and non-essential consumer goods to limit trade gap in 2009, Vietnam News Agency reported.
The planned restricted imports consist of tobacco, under-12 seat CKD cars and motorbike parts and components. The auto industry will see the sharpest drop in imports with estimated value of US$7.2 billion next year.
Other measures include the full use of imports stockpiled in warehouses, added the ministry.
Vietnam is facing emerging risks of increasing import trend leading to the country’s growing trade deficit in the coming months amid decreasing export value triggered by the global financial crisis, warned the MoIT.
The ministry also noted that the stumbling prices of most necessary commodities in the world market, that Vietnam has great demands, will facilitate domestic traders’ import activities to balance prices of imported goods in the past months.
Additionally, the exchange rates of VND/EUR,£,AUD have been falling, encouraging the country’s imports from these markets.
Vietnam is estimated to incur a smaller trade deficit of US$19 billion this year, down from the initial expected figure of US$20 billion, but up 53.22 per cent on-year.
The country’s import spending is expected to increase 15 per cent to US$96.6 billion next year while exports are likely to rise 18 per cent to US$76.7 billion, resulting in a US$19.9-billion trade deficit for the whole year. (Vietnam & World Economy, VNA)
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