Trade deficit hits $4.1b through Oct

During the first 10 months, the total export value gained a year-on-year surge of 8.5 per cent to $134.6 billion, while the total import value had a year-on-year increase of 14.3 per cent to 138.7 billion. — File Photo

HA NOI (Biz Hub) — Viet Nam's trade deficit through the end of October this year, increased to US$4.1 billion from $3.9 billion in the first nine months , according to the General Statistics Office (GSO).

The office reported that the domestic economic sector had a high trade deficit at $17 billion because the sector's export value reduced 3.3 per cent to $39.6 billion, while its import value rose 7.8 per cent to $56.6 billion, when compared with the same period of last year.

In the first 10 months, the foreign-invested sector achieved a trade surplus at $13 billion, with its export value at $95 billion and its import value at $82 billion.

China remained the largest exporter to Viet Nam with a total trade deficit of $27.2 billion on the Vietnamese side, the office said.

The increase of export value was mainly due to higher export value of goods made by foreign-invested firms or processed goods, including telephone and its components, which rose 32.7 per cent, electronic products and computer which rose 44 per cent, textile and garment products, which went up 10.4 per cent, and footwear that rose 15.4 per cent.

Meanwhile, the local economic sector had lower growth rate or reduction in export value, such as wooden products, which rose 8.9 per cent, crude oil which dropped 49 per cent, coal which dropped 65.7 per cent, in addition to rice and seafood, which slid down to 13.3 per cent and 17 per cent, respectively.

The office said import value of products for processing and production of export goods surged sharply, including machines which rose 26.8 per cent, electronic and computer rising by 29.7 per cent, telephones up 31.8 per cent, in addition to plastics and automobiles that climbed 21.7 per cent and 64.4 per cent, respectively.

The Ministry of Industry and Trade (MoIT) has warned that Viet Nam's exports of many key products in the remaining months this year are expected to be lower than a year ago due to fierce competition in the global markets.

However, the country's total exports would reach between $165 billion and $166 billion, an increase of 10 per cent over last year and meeting the target set by the National Assembly.

To achieve the year's export growth target of 10 per cent, the ministry would co-operate with business groups to resolve hardships faced by companies.

The ministry said it would also strengthen export promotion and speed up negotiations with other countries for mutual recognition of product quality. — VNS