Nov trade deficit narrows to $3.8b

Friday, Nov 27, 2015 08:26

A worker at Hanam Textile Company prepares fiber reels for export. Garment and textile exports rise 9.1 per cent during the first 11 months of this year. — VNA/VNS Photo Tran Viet

HA NOI (Biz Hub) — Viet Nam's trade deficit narrowed to US$3.8 billion in the first 11 months of this year, from the $4.1 billion recorded for the first 10 months.

According to the General Statistics Office (GSO), the reduction was thanks to an $18.8 billion trade surplus achieved by foreign direct investment (FDI) enterprises, compared to a $15 billion deficit generated by domestic businesses during 11 months.

So far this year, export revenues have totalled about $148.71 billion, up 8.3 per cent over the same period last year.

Exports by FDI companies hit $105.10 billion, a year-on-year increase of 13.5 per cent, while those by local firms reached $43.6 billion, a year-on-year decline of 2.1 per cent.

The FDI sector posted high turnover for most of its major exports. For example, telephones and components reached $28.5 billion, up 29.6 per cent; computers, electronic products and components reached $14.3 billion, up 38.2 per cent.

Garment and textile products reached $20.7 billion, up 9.1 per cent, machinery and equipment reached $7.4 billion, up 11.2 per cent, while timber products reached $6.2 billion, up 9.5 per cent.

Meanwhile, the domestic sector witnessed reduction in its key exports, with crude oil especially falling by 48.3 per cent year-on-year at $3.53 billion, following global oil price declines.

Rice was also down 48.3 per cent at $2.66 billion, while coffee dropped by 29.3 per cent at $2.34 billion, and rubber declined 14.2 per cent at $1.38 billion.

During the first 11 months, the country's import values totalled nearly $152.5 billion, an increase of 13.7 per cent over the same period last year.

The total import value of local businesses was $62.3 billion, a year-on-year rise of eight per cent, while that of FDI companies was $90.2 billion, up 18.1 per cent.

The GSO said imports mainly served production and processing for export, and the main imports were machinery and equipment, growing by 25.7 per cent at $25.3 billion; computer, electronic products and components, increasing 27.7 per cent at $21.6 billion.

They also included telephones and components, which rose by 29.7 per cent at $10.1 billion, cloth, which increased 8.3 per cent at 9.3 billion, garment, textile and footwear materials, which were up eight per cent at $4.6 billion.

Automobile imports soared 60 per cent at $5.3 billion.

However, iron and steel were down one per cent at $6.84 billion, with cheap products being imported massively, and petrol plummeted nearly 32 per cent at $4.83 billion, due to the fall in the global oil price.

The GSO forecast that the country's trade deficit will expand next month as crude oil and farm produce exports are likely to continue to decrease.

But the agency expected that the deficit will be controlled at less than five per cent of all export revenues, as the country has targeted this year. — VNS

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