Trade balance accrues upward trajectory
Vietnam’s trade balance has been back on an upward path after recording a surplus worth USD70 million between January and mid-June.
According to the General Department of Vietnam Customs, the country racked up USD10.178 billion in the first half of June, thus increasing the total value of exports by 15 June to USD111.26 billion. Elsewhere, imports stood at USD9.693 billion during the first two weeks of June and USD111.193 billion by mid-June.
As such, the country recorded a trade surplus worth USD500 million in the first half of June and USD70 million by mid-June.
Three categories saw their export turnover surpass USD1 billion during the first half of this month. Telephones topped the list of exports with the total turnover amounting to USD1.714 billion in the first half of June and USD21.43 billion by mid-June. This category was followed by computers, electronic items, and components with the combined export value of USD1.427 billion during the first two weeks of June and USD13.971 billion by mid-June.
Apparel exports earned USD1.401 billion during the first half of June, thus bringing the total turnover of the category to USD13.586 billion by mid-June.
Though the country experienced a trade surplus of USD634 million during the final two weeks of May, the trade balance still sustained a deficit of USD434 million over the first five months of 2019.
This year’s trade balance is likely to see non-periodic and unpredictable fluctuations, experts said.
The soaring inflows of foreign direct investment (FDI) seen over the first five months of 2019 are expected to give a big push to exports during the remaining months of the year.
The total registered and additional foreign capital between January and May 20 enjoyed a year on year surge of 27.1%. Notably, the disbursement of foreign direct investment (FDI) in the reviewed period saw an annual hike of 7.8%.
The National Assembly has set a target of increasing exports by 7 – 8% during 2019. However, this remains a challenging target amid slowdowns in the global economy and trade, according to the Ministry of Industry and Trade.