Vietnam Jan-July Trade Gap with China at Alert Level: Customs Dept

 

Vietnam ran a huge trade gap of US$7.35 billion with China in the first seven months of this year, about US$100 million higher than the former’s total trade gap during the period, according to the General Department of Customs.

 

The bilateral trade surged to US$14.21 billion during the period, of which, Vietnam reaped US$3.429 billion from exports to China, and imported US$10.781 billion, the department said without giving on-year comparative figures.

 

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 as 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.

 

Vietnamese economists warned that local importers will seriously be affected by the recent yuan revaluation that makes Chinese goods more expensive.

 

Vietnam’s trade deficit with China saw on-year increases over the past years to US$9.145 billion in 2007, US$11.116 billion in 2008 and US$11.532 billion in 2009.

 

Last year, the Southeast Asian nation’s imports of machinery and equipment from accounted for 28% of its total import spending, followed by input materials such as steel and iron, apparel and footwear accessories and petroleum products; and consumer goods.

 

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