Vietnam Trade Deficit Predicted at $14B Next Year: MPI
Vietnam is predicted to incur a trade deficit of $14 billion next year, up from an estimated $12.4 billion this year, according to the Ministry of Planning and Investment.
The country’s exports will grow 10% on year to $78 billion in 2011 while the imports are forecast at $92 billion, up 11%, the ministry said in a report.
The MPI said such a trade gap will remain under 18% of total export revenue, and is lower than the level of $14.6 billion that the Government has reported to the National Assembly.
The foreign-invested sector will remain the driver of both export and import segments next year.
The ministry expects foreign-invested enterprises to generate $38 billion of export earnings, crude oil excluded, which accounts for 48.7% of the country’s total and shows an annualized growth rate of 13%.
Meanwhile, their import spending will total some $41.5 billion, equivalent to 45% of the country’s total import expenditure.
The National Assembly’s Economic Committee has called for efforts to reduce the trade deficit to $13.5 billion or lower to ease pressure on the country’s current account.
The committee warned that while foreign reserves remained limited, the high trade deficit would cause volatility on the foreign exchange market and affect macroeconomic stability. (STD, Saigon Economic Times)
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