Viet Nam will continue running a trade deficit in 2016 that will be under 5 per cent of total export revenue. — Photo vov.vn

HA NOI (Biz Hub) — Viet Nam will continue running a trade deficit in 2016 that will be under 5 per cent of total export revenue, the Ministry of Industry and Trade (MoIT) has forecast.

Director General of the MoIT's Planning Department Vu Ba Phu said at the teleconference held in Ha Noi yesterday that the country recorded a trade deficit of about US$400 million in May.

Although there was a trade surplus equivalent to 2 per cent of total export value in the first five months, demand for imported machinery and materials for infrastructure building is still high.

There is also a growing need for industrial equipment imports to expand production and optimise opportunities brought about by many free trade agreements the country has joined.

In the first five months of the year, Viet Nam posted a trade surplus of $1.36 billion as a result of some $67.7 billion in exports (up 6.6 per cent year on year) and $66.3 billion in imports (down 0.9 per cent year on year).

Notably, overseas agro-forestry-fishery shipments, during the five months, rose by $818 million or 10.1 per cent from a year earlier, compared to a 10-per cent decline in the same period last year.

China remained the biggest exporter of goods to Viet Nam during the five months, posting a turnover of $19.2 billion, dropping by 2.9 per cent annually.

Viet Nam mainly imported machines, equipment, mobile phones, computers, fabrics, iron and steel from China.

Viet Nam's exports to China hit $5.8 billion in the first five months of 2016, an increase of 16.5 per cent year on year. — VNS