The country's import-export turnover slump, which was experienced in the first half of December, for the drop in export value of the foreign-invested sector.— VNA/VNS Photo Le Lam

HA NOI (Biz Hub) — Viet Nam recorded a trade deficit of more than US$474 million in the first half of December.

According to the General Department of Customs, the nation's total trade hit approximately $12.1 billion during the reviewed period. This amount represents a month-on-month decrease of 9.7 per cent but a year-on-year increase of 14 per cent. The recent trade deficit lowered the country's surplus, which was acquired in the past 11 months, from $2.88 billion to $2.39 billion.

Of the total trade amount, exports experienced a monthly drop of 17 per cent to reach $5.82 billion. The key items affected included telephones and their components, textiles and garments, footwear and wood and wooden goods. Meanwhile, imports also witnessed a modest decrease, reaching $6.29 billion.

The department blamed the country's import-export turnover slump, which was experienced in the first half of December, for the drop in export value of the foreign-invested sector.

The latest addition has been noted to bring the country's trade value total to approximately $140.3 billion as of mid-December, in which the foreign-invested sector contributed 43 per cent or roughly $80 billion.

The Ministry of Industry and Trade predicted that Viet Nam would likely experience a trade deficit next year after three consecutive years of trade surplus.

The ministry anticipated the export revenues next year to increase by roughly 10 per cent to $163 billion. However, the import payments are expected to rise, which would result in a trade deficit of $6 billion to $8 billion or 5 per cent of the export revenues.

Deputy Industry and Trade Minister Do Thang Hai attributed the country's trade surplus in previous years to the increase in exports from foreign-invested companies.

However, this would change next year as exports from these companies have gradually declined and are not expected to increase as much as before, he disclosed.

Figures from the ministry showed that the export growth rates of foreign-invested companies have fallen from 31 per cent in 2012 and 22 per cent in 2013 to 12 per cent this year. Rapid and consecutive decreasing rates indicate that the production capacity of foreign-invested companies has gradually declined. — VNS