Binh Duong Province-based Protrade Garment JSC workers make garment products for export to the US. — VNA/VNS Photo Tran Viet

Viet Nam's trade turnover hit US$316.7 billion in the first half of this year, surging 32.2 per cent year-on-year, according to the Ministry of Industry and Trade.

Of the total, its exports reached $157.6 billion, up 28.4 per cent while imports saw a yearly rise of 36 per cent to $159.1 billion. That resulted in a trade deficit of $1.47 billion during the period.

From January to June, there were 31 imported products with a value of over $1 billion, accounting for 87.4 per cent of the national total import turnover. They included electronics, computers and components with $33.3 billion, up 23 per cent; machinery, equipment, and spare parts ($22.9 billion, up 37.3 per cent); phones and components ($8.9 billion, up 48 per cent), fabric ($7.3 billion, up 32.3 per cent) and iron and steel ($5.7 billion, up 41 per cent).

China remained Viet Nam's largest provider of goods with $53.4 billion, up 53 per cent over the same period last year. It was followed by South Korea with $25.2 billion, up 21 per cent; ASEAN countries ($20.9 billion), up 48 per cent; Japan ($10.6 billion, up 12.3 per cent); the EU ($8.1 billion, up 16 per cent) and the US ($7.7 billion, up 9.5 per cent).

Many experts said the current trade deficit was not a cause for concern as Viet Nam mainly imported components and raw materials for production and export. That would be a premise for production and would lead to stronger exports in future.

Deputy Director of the Import-Export Department under the Ministry of Industry and Trade (MoIT) Tran Thanh Hai agreed. He told the Kinh te do thi newspaper that this was a modest trade deficit with many imported items being raw materials to serve production activities, especially in the production of export products.

For example, textile and garment and footwear were industries that had experienced strong growth momentum so the import increase of electronic components, raw materials and accessories for these sectors was inevitable, he said.

In terms of exports, 25 staples posted a turnover of over $1 billion in H1, accounting for 88.9 per cent of total turnover. Of them, five items earned a value of over $10 billion or 58 per cent of the total, including electronics, computers and components with $23.7 billion, up 22 per cent; machinery, equipment and spare parts ($17 billion, up 63 per cent); textile and garment ($15.2 billion, up 15 per cent) and footwear ($10.4 billion, up 28 per cent).

The US retained its position as Viet Nam's largest export market with a turnover of $44.9 billion, up 43 per cent over the same period last year. China came next with $24.4 billion, up 24 per cent, while the EU ranked third with $19.3 billion, up 17.4 per cent. ASEAN nations, South Korea and Japan were the runners-up with $13.8 billion, up 26 per cent; $10.5 billion, up 15 per cent; $9.9 billion, up 7 per cent, respectively.

According to the MoIT, exports are set to increase by about 21.7 per cent by year-end compared to the year’s respective targets of 4-5 per cent.

To this end, the ministry would continue to give priority to promoting trade connections between Vietnamese enterprises and foreign partners, and the introduction of made-in-Viet Nam goods to domestic and international consumers.

Particularly, it would continue working to promote overseas shipments, diversify both export and import markets, optimise opportunities generated by free trade agreements, and remove barriers to enter new markets. — VNS