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Tuesday, June 18, 2024

Vietnam runs trade deficit for fourth consecutive month

The Saigon Times

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HCMC – Vietnam ran a trade deficit of US$1.3 billion in August, the fourth consecutive month, taking the January-August total to US$3.7 billion, according to a Ministry of Industry and Trade report.

The report on industrial production and trade released on September 1 showed that the fourth wave of Covid-19 infections had forced many cities and provinces, especially in southern Vietnam, to practice stringent social distancing and impose harsh travel restrictions, negatively affecting import-export operations, the local media reported.

However, the Ministry of Industry and Trade remains optimistic about the trade balance in the remaining months of the year. According to the ministry, the country is traditionally inclined to step up imports in the first months of year to prepare export production, so exports will rise in the second half of year.

In the eight-month period, domestic enterprises incurred a trade deficit of US$20.36 billion, while foreign-invested firms generated a trade surplus of US$16.65 billion.

In August, the country exported products worth US$26.2 billion and spent US$27.5 billion on imports, down 6% and 5.5%, respectively, month-on-month.

The country’s key export earners last month were phones; machines, equipment, tools and parts; and electronic products and accessories.

In January-August, the respective turnover from exports and imports reached US$212.55 billion and US$216.26 billion.

The United States was the largest importer of Vietnamese products in the period with revenue of US$62 billion, up 32.3% year-on-year. China came in second with US$32.7 billion, followed by the European Union with US$26 billion.

Meanwhile, China remained the largest supplier of products to Vietnam with US$72.5 billion, followed by South Korea with US$34.6 billion and ASEAN with US$28 billion.

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