Vietnam to Import US$28.96Bln Worth of Goods in 2004

Vietnam to Import US$28.96Bln Worth of Goods in 2004

The import value of Vietnam is expected to reach US$28.96 billion in 2004, an increase of 14.8 per cent against the previous year, estimated the Ministry of Trade (MoT). Of the import value, Vietnamese enterprises will import US$18.595 billion, up 13.3 per cent over 2003, and foreign-invested enterprises will import US$10.363 billion, up 17.6 per cent.

With the total forecasted export value of US$24.1 billion in 2004 by the ministry, Vietnam will face a trade deficit of US$4.86 billion, equal to 20 per cent of the export value, MoT said.

The country's import value in the last six months of this year is expected to stand at US$14.8 billion, up 15 per cent over the same period last year, according to MoT, of which local enterprises will account for US$9.5 billion, up 14 per cent on-year, and foreign-invested firms, US$5.3 billion, up 18 per cent. The value will see a small rise compared to the level in the first six months, totaling US$14.16 billion.

Imports of steel ingot in the period is said to be lower than that of the first half because since July 1, the Ministry of Finance decided to raise import tariffs of steel ingots and construction steel to 10 per cent and 20 per cent, respectively, instead of zero per cent before, and many steel plants have consequently resumed operation after a long period of stagnancy.

The MoT forecasts that Vietnam will still see higher imports of medicines in the coming time to meet local demand and the high demand for reserving necessary medicines by the healthcare sector. The medicine import value in June stood at US$35 million, bringing the total value in the first half of this year to around US$186 million, up 7.5 per cent on-year, and the country plans to import US$215 million worth of products from now until the years-end. France is the largest provider of pharmaceutical products to Vietnam accounting for 18.5 per cent of the country's total value, followed by Korea with 12.3 per cent, India 10.4 per cent and Switzerland 9.8 per cent, reported MoT.  

Import volumes of petroleum products and fertilizers of all kinds are expected to witness slight increases. The fertilizer supply in the local market has been stable so far this year and the Phu My Fertilizer Plant is planning to market its products in the coming months.

However, Vietnam will retain the import value of machinery and equipment in the rest of 2004 at US$2.5 billion, a fall of 11.3 per cent compared to the same period last year due to the country's decline in investment, MoT said.

• Hai Duong