Vietnam Incurs Strong Trade Deficit in Jan-February

The fast-growing economy of Vietnam is forecast to bag US$6.76 billion from exports in the first two months of this year, up 23.5 per cent on-year, while it reports higher on-year import growth of 45.8 per cent, posting at US$7.83 billion, according to the Government’s General Statistics Office (GSO).

 

The figures result in a big trade deficit of US$1.07 billion during the time, while the on-year comparison witnessed a slight trade surplus of US$160 million.

 

Of the total export revenue, foreign-invested firms contribute over US$2.78 billion, up 17.3 per cent on-year, and domestic enterprises US$2.97 billion, up 32.3 per cent.

 

In January, the country earned US$3 billion from goods shipment, up 24.48 per cent on-year and down 20.2 per cent on-month.

 

During the two-month span, crude oil remains the biggest cash earner with a total export volume of 2.59 million tons valued at US$1.08 billion, down 5.5 per cent and 17.6 per cent on-year, respectively.

 

It is followed by garments and textiles with US$1.01 billion, up 31.2 per cent; footwear, US$660 million, up 23.6 per cent; seafood, US$431 million, up 25.7 per cent; coffee, US$565 million, up 222.8 per cent; woodwork products, US$404 million, up 42.1 per cent; electronic and computer parts, US$280 million, up 21.7 per cent; and rubber with US$189 million, up 4 per cent.

 

The country ships only 316,000 tons of rice in January-February, totaling US$100 million, sharp on-year declines of 47.8 per cent and 39.9 per cent.

 

Regarding imports in the period, foreign-invested companies import US$2.82 billion worth of goods, up 37.5 per cent on-year while domestic ones pay US$5 billion, up 51 per cent.

 

The Southeast Asian country continues spending the most on imports of machinery and equipment (US$1.44 billion, up 80.5 per cent on-year), fuel (US$879 million, up 12.8 per cent on-year), steel and iron (US$518 million, up 69.3 per cent), cloth (US$490 million, up 49.4 per cent), plastics (US$33 million, up 30 per cent), garment and textiles accessories (US$263 million, down 2.6 per cent), and chemicals (US$179 million, up 23.9 per cent).

 

This year, Vietnam is forecast to bag US$47.5 billion in exports, up 20 per cent on-year and spend US$52.2 billion on goods imports, up 17.5 per cent. (GSO February 2007)