BVSC’s latest report suggested Vietnam will face headwinds in exporting as global growth is slowing down, dragged down by China. Electronics and mobile phones also run into difficulties with a global saturation, with the growth in the first quarter of 2019 being only 7%, relatively lower than the previous two years at 20% and 40%, respectively.
Nevertheless, other free trade agreements (FTAs) and the US-China trade tension will continue buttressing export of processed industrial products, including textiles, footwear, wood, suitcases, and bags, among others. Besides, Vietnam will benefit from the US-China trade war as the US may restructure their import of goods to Vietnam, stated BVSC.
Preliminary statistics of the General Department of Vietnam Customs revealed that the country turned to have a trade deficit of US$746 million in the first half of April.
As of April 15, the country’s export turnover reached US$68.55 billion, up 5.7% year-on-year, while imports hit US$64.53 billion, up 4.5% year-on-year. The sharp increase in imports resulted in a US$750 million trade deficit in the first 15 days of April. As such, Vietnam has posted a trade surplus of over US$600 million so far this year.
The trade deficit in automobile and machinery, spare parts and electronic components increased strongly. However, Vietnam’s trade balance has fluctuated between reporting periods. While the first 15 days of January saw a trade deficit of almost US$1 billion, toward the end of January, trade surplus hit US$800 million. Therefore, preliminary statistics for the first half of April might not reflect April’s trend, BVSC continued.
The FDI sector reported exports worth US$47.69 billion as of April 15, up 3.6% year-on-year or 69.6% of total Vietnam’s exports, while imports reached US$39.2 billion, up 6.3% year-on-year or 57.7% of the totals.
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