Trade Deficit Slightly Down in First Eleven Months

Vietnam is estimated to post total export turnover of US$29.12 billion and import bill of US$33.55 billion in the first eleven months of 2005, leaving a trade deficit of US$4.43 billion, down by 1 per cent compared to the same period last year, according to the government’s statistics office.

 

In November alone, the trade deficit was put at US$350 million, also down from US$363 million reported in the previous month.

 

The narrowing trend was attributed to the higher growth of exports than imports so far this year.

 

In the eleven-month period ending in November, exports were estimated to have grown 21.5 per cent on-year, driven by a strong performance from companies with foreign investment. This sector posted a 27.7 per cent increase in the period, earning US$16.76 billion, or 57.6 per cent of the country’s total revenues.

 

Among key export items, coal recorded the highest growth rate of 82.1 per cent in export value, thanks to both bigger shipments and higher prices. It was followed by rice (47.9 per cent), wooden products (40.9 per cent), plastic products (37 per cent), electronics and PCs (36.4 per cent) and vegetables and fruit (US$31.9 per cent).

 

Crude oil, the country’s No. 1 forex earner, also brought home 30.3 per cent more money compared to a year earlier.

 

There were only five commodities that posted a decrease in export earnings so far this year, namely tea (0.2 per cent), pepper (3.7 per cent), children’s toys (12.6 per cent), bicycles and spare parts (38.9 per cent) and animal fat (45.6 per cent).

 

Meanwhile, imports were seen up by 16.6 per cent on-year, with the payment for foreign motorbikes surging the most by 92.6 per cent, followed by milk and dairy products (52.5 per cent), paper and petroleum products (both up 43.4 per cent).

 

Spending on machinery and equipment, which still cost the country the most, was up slightly by only 1.1 per cent to US$4.78 billion in the period.

 

Earlier this month, the Ministry of Trade revised its trade deficit prediction for this year down to around US$5 billion compared to the US$6.5 billion level announced in August. The new estimation will be US$500 million or 8.25 per cent less than last year’s level.

 

Vietnam’s exports will grow 21.1 per cent to US$31.5 billion while imports rise 15.8 per cent to some US$36.5 billion this year, the MoT said.

 

Vietnam currently reports a trade surplus with the EU and the US, but suffered a trade deficit with Asian and Southeast Asian countries.