Trade sees $1.87b deficit in first half of May

Clothes are produced for export at Gia Dinh Garment and Textile Corporation in HCM City. Viet Nam's total export turnover reached $56.09 billion from the beginning of this year, as of May 15. — VNA/VNS Photo An Hieu

HA NOI (Biz Hub) — Viet Nam exported US$6.32 billion worth of commodities in the first half of May, a decrease of 9.5 per cent compared over the previous fortnight, the General Department of Customs reported.

Meanwhile, the country's imported goods were worth $8.19 billion, an increase of 34.7 per cent compared to the second half of April.

This meant the country's trade deficit was $1.87 billion for the first two weeks of May. This compares to a trade deficit of $3.7 billion from the beginning of the year.

The total export turnover from the beginning of this year to May 15 totalled $56.09 billion, while import turnover was $59.78 billion.

The import turnover for the first five months was expected to reach $66.2 billion, an increase of 15.8 per cent compared to the same period last year.

Regarding exports, key export products from the beginning of the year included telephones and components ($10.44 billion), garments and textiles ($7.23 billion), computers, electronic products and spare parts ($5.35 billion), footwear ($4.09 billion), machines, equipments and accessories ($2.78 billion) and wood and wooden products ($2.32 billion).

Meanwhile, Viet Nam's main imported products were machines and equipment serving production.

The General Statistics Office attributed the high trade deficit to an increasing demand for infrastructure investment and production. This led to an increase in demand for machines, equipments and materials.

Meanwhile, the economy is dependent on imported materials because a supporting industry has not fully developed in Viet Nam.

"FDI enterprises have ultilised opportunities from free-trade agreements which take effect this year", said the office.

Despite unsatisfactory production and business results for the first four months of this year, many enterprises hope that their business will improve in the next six months, said the the Viet Nam Chamber of Commerce and Industry.

For the last nine months of the year, 42.2 per cent of enterprises will expand their businesses, 56.1 per cent will remain the same, 1.7 per cent will reduce operations and 0.1 per cent might have to stop.

It was easier for businesses to access loans in the first four months of this year, which increased their optimism. — VNS