Vietnam Incurs $8.1B Trade Deficit with China in Jan-July

Vietnam ran a huge trade gap of $8.09 billion with China in the first seven months of this year, compared to the former’s Jan-Jul trade deficit of $7.443 billion estimated by the General Statistics Office, the Vietnamese Trade Office in China said.

 

The bilateral trade surged 48.9% from a year earlier to $15.36 billion during the period, of which, Vietnam reaped $3.63 billion from exports to China, up 44.5% on-year, and imported $11.72 billion, up 50.4%.

 

In July, Vietnam’s exports to its neighbor were valued at $680 million while its imports were $1.86 million, the office said.

 

China has remained Vietnam’s largest trading partner for years but the latter has incurred an annual huge trade deficit with the former during the period. Vietnam ran a trade gap of $11.5 billion with its neighbor in 2009, representing 93.9% of the former’s total.

 

Vietnam and China are trying to raise the bilateral trade to $25 billion this year from $21.35 billion in 2009.

 

Vietnamese economists warned that local importers will seriously be affected by the recent yuan revaluation that makes Chinese goods more expensive because Vietnam can not immediately change its import-export structure in which it mainly buy machinery and equipment, and input materials for producing exports and sell raw materials like crude oil, coal and rubber. (www.ttnn.com.vn Aug 10)