Trade surplus hits $19 billion, highest since 2016

Wednesday, Dec 30, 2020 06:43

Viet Nam’s total trade revenue has hit $543.9 billion, up 5.1 per cent year-on-year. — VNA/VNS Photo

Viet Nam is estimated to enjoy a trade surplus of US$19.1 billion this year, the highest since 2016, despite the challenges posed by the COVID-19 pandemic.

The country’s total trade revenue has hit $543.9 billion, up 5.1 per cent year-on-year. Of the total, export value is $281.5 billion and imports $262.4 billion, year-on-year rises of 6.5 per cent and 3.6 per cent, respectively.

Nguyen Viet Phong from the General Statistics Office (GSO)’s Trade and Service Statistics Department said the trade surplus is a bright spot contributing remarkably to economic growth and aiding the exchange rate and foreign exchange reserves in the context of Viet Nam needing more resources for post-pandemic economic recovery in 2021.

While the world economy is seriously affected by the pandemic, the trade surplus of $19.1 billion shows Viet Nam has taken advantage of opportunities brought by signed free trade agreements (FTAs), especially the EU-Viet Nam FTA and the quality of the country’s exports has improved, meeting the requirements of choosy markets.

According to the GSO, in 2020, 31 commodities enjoyed export turnover of more than $1 billion, with six posting export values of more than $10 billion, accounting for 64.3 per cent of the total export turnover.

The heavy industry and mineral sector enjoyed the biggest export value of $152.5 billion, up 11.3 per cent year-on-year.

On the other side, 35 commodities posted import values of more than $1 billion this year, with four reaching $10 billion, accounting for 49.4 per cent of total import revenue.

Viet Nam becomes second biggest exporter to US

Viet Nam moved up four spots to become the second-biggest exporter to the US in 2020, with its export turnover to the country surging 24.5 per cent to an estimated $76.4 billion.

Besides traditional exports like textiles, footwear and aquatic products, Viet Nam has also shipped electronics, spare parts and wooden products to the market.

According to Phong, Viet Nam enjoys a trade a surplus of $62.6 billion with the US, compared to $20.3 billion with the EU, while it has trade deficits of $34.5 billion with China, $27.6 billion with the Republic of Korea, and $6.9 billion with ASEAN.

However, Viet Nam’s exports to the US account for only 2.7 per cent of the American country’s total imports from all countries and territories worldwide.

Phong suggested Viet Nam make more efforts to help US businesses operating in Viet Nam deal with difficulties, and import more from the US, particularly commodities such as energy, agricultural products, pharmaceutical products and machinery.

According to the Vietnam Trade Office in the US, the two countries have witnessed a strong breakthrough in bilateral trade turnover, especially Viet Nam’s exports to the US.

Statistics from the US side show that two-way trade increased to $75.7 billion in 2019 from just $450 million in 1995 when Viet Nam and the US established diplomatic relations.

Apart from trade co-operation, the two countries have also enhanced toes in investment, research, sci-tech development, transportation, education, telecommunication and energy. — VNS

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