Viet Nam achieved a trade surplus of US$3.6 billion in January 2023, although its total trade value this month has decreased, according to the General Statistics Office (GSO).

GSO reported that the total trade value in January is estimated at $46.6 billion, down 17.3 per cent from December 2022 and down 25 per cent year on year.

Of which, the total export value is expected at $25.1 billion, down 13.6 per cent over the previous month and down 21.3 per cent over the same period in 2022.

Total import turnover in January is estimated at $21.5 billion, down 21.3 per cent from December 2022 and down 28.9 per cent year on year.

The country saw the trade value decrease in January because the first month of 2023 coincided with New Year and Lunar New Year, so the number of working days was less than in December 2022 and compared with the same period in 2022.

Besides that, this decrease is also affected by difficulties in the world economy that have made consumer demand decline.

In January 2023, there were seven goods with export turnover of $1 billion or more, accounting for 66.6 per cent of total export value.

For the structure of export commodity groups, processed industrial goods are estimated at $22.32 billion, accounting for 89 per cent; agricultural and forestry products at $1.9 billion, accounting for 7.6 per cent; and seafood products at $600 million, accounting for 2.4 per cent.

Meanwhile, there are three goods with an import value of $1 billion or more, accounting for 37.2 per cent of the total import value.

Regarding the structure of the group of imported goods, many kinds of materials for production have reached about $20 billion, accounting for 93 per cent, including machinery, equipment, tools, spare parts, raw materials, fuel and materials. Imported consumer goods have reached $1.51 billion, accounting for 7 per cent.

In January, the import value is estimated at $7.48 billion from the domestic economic sector, down 26.6 per cent on month and 28.9 per cent on year; and $14 billion from the foreign-invested sector, down 18.1 per cent on month and 30.4 per cent on year.

This month, the US is the largest export market of Viet Nam with an estimated value of $7.6 billion. China is Viet Nam's largest import market with an estimated turnover of $8.1 billion.

In January 2023, Viet Nam achieved a trade surplus of $1.8 billion to the EU, down 45 per cent on year; and $100 million to Japan, down 65.3 per cent. While, it has had a trade deficit of $3.4 billion from China, down 52.6 per cent; $2.5 billion from South Korea, down 20.9 per cent; and $1.3 billion from ASEAN, up 74.3 per cent.

GSO said in the context that most countries may face inflation and economic recession, global consumer demand will decline this year. That creates negative impacts on Viet Nam's import and export activities.

In fact, the export and import activities in the fourth quarter of 2022 showed signs of decline due to declining orders at export production enterprises.

The Ministry of Industry and Trade also said that Viet Nam's export growth has depended on many factors, such as the conflict in Ukraine, the situation of inflation control of importing countries, and economic developments in major import markets.

However, there are factors to promote growth in export activities, including the implementation of the tariff reduction roadmap under the free trade agreements (FTAs) and the socio-economic recovery and development programmes. Attracting domestic and foreign investment will also be the driving force to increase the exports in 2023.

The ministry sets a target of export value growth rate at about 6 per cent this year and the balance of trade remains in surplus.

To reach the targets, businesses need to actively improve the competitiveness of their products, as well as expand neighbouring export markets, the ministry said.

Besides that, the ministry will strengthen exploitation of potential neighbouring markets, and boost official export in association with brand building to promote sustainable export.

It will also innovate trade promotion methods and develop digital infrastructure to promote distribution of goods via e-commerce channels. — VNS