Trade Balance Improves

Trade Balance Improves

The export value in July continued to exceed that of June, bringing the total export turnover of Vietnam to US$14.17 billion in the seven months, according to the General Statistics Office. A growth rate of 21.8 per cent in comparison with the same period last year doubled the 12 per cent target for the whole year set by the National Assembly. Despite many difficulties and challenges in both domestic and foreign markets in the final months, with this result, many officials from the Ministry of Trade are optimistic about the possibility of earning US$22 billion or more in export turnover this year.

July’s export value was put at US$2.16 billion, up by five per cent against that of June.

In seven months, the foreign-invested sector continued to lead in export turnover with more than US$7.74 billion.

According to experts, this high growth rate is driven by positive developments in the world market and high global prices. Up to 18 out of 23 major Vietnamese export items have seen their export turnover increase. The export value of woodwork products increased by 87 per cent, reaching US$577 million; bicycles and accessories, 69.4 per cent, reaching US$144 million and coal, 66.1 per cent, reaching US$168 million.

Apart from crude oil, the leading export item in the first seven months was textiles and garments, which earned US$2.46 billion, up by 9.5 per cent against the previous year. It was followed by footwear with US$1.58 billion, an increase of 16.1 per cent. The export value of seafood exceeded US$1 billion but this constitutes a slight fall of two per cent against the turnover of the same period last year.

The drop in the trade deficit is attributable to the growth rate of the import turnover in seven months being lower than growth rate of the export turnover. In the period, Vietnam imported goods and services valued at about US$16.85 billion, up by 17.2 per cent against that of the same period last year. As a result, the total trade deficit stands at US$1.62 billion in the seven months in comparison to US$2.2 billion in the first half. In July alone, import turnover reached US$2.55 billion.

Statistics show that five out of the 24 major imports saw their turnover decrease. The import turnover fell by eight per cent for the automobile industry, 13 per cent for machinery and equipment and 3.1 per cent for paper products. However, the value of some major essential imports, such as steel, oil and petrol, soared despite a slight fall or a minimal increase in volume. In the seven months, Vietnam imported 6.45 million tonnes of oil and petrol, valued at US$1.91 billion, up by seven per cent in volume but 32 per cent in value. Similarly, the total imported volume of steel was put at 2.77 million tonnes, down by 3.5 per cent but its value of US$1.3 billion saw an increase of 25.4 per cent.

According to experts, Vietnam may further improve its trade balance if prices of import items stabilise.

• H.C