Vietnam's trade surplus highest in 5 years

Vietnam's trade balance in October continued to have a surplus of 3 billion USD, bringing the total trade surplus in 10 months to more than 24.6 billion USD, the highest in 5 years.

This data was announced by the Ministry of Industry and Trade in the October industrial production and trade report. With a level of over 24.6 billion USD, the trade surplus in the first 10 months of this year increased more than 2.5 times compared to the same period last year. This is also the highest level in the same period in the past 5 years (except for 2021, when the trade deficit was over 1.4 billion USD due to Covid).

The domestic economic sector had a trade deficit of nearly 18 billion USD, while the foreign-invested sector (including crude oil) had a trade surplus of 42.6 billion USD. "The trade surplus contributes to macroeconomic stability, ensures major balances of the economy and supports the international balance of payments," the Ministry of Industry and Trade stated.

But unlike every year, Vietnam recorded a trade surplus due to a deeper decline in imports than exports.

Data from the Ministry of Industry and Trade shows that imports in October increased by nearly 3%, reaching 29.3 billion USD. However, over the past 10 months, this figure still decreased by over 12% compared to the same period last year, nearly 267 billion USD.

Difficulties in export markets, declining orders and cooling raw material prices caused imports of raw materials to decrease by over 12% over the same period, to nearly 236 billion USD.

Except for computers, electronic products and components, which increased by 0.8%, most key commodity groups and important inputs for production decreased by double digits. For example, phones of all kinds and components decreased by more than 60%, iron and steel of all kinds decreased by 17.3%. The group of goods requiring control also decreased by 18%.

Import and export of goods at Tan Vu port - Hai Phong , July 2023. Photo: Giang Huy

In terms of market, China is still the largest export market to Vietnam, with nearly 90 billion USD, but in terms of proportion, it decreased by over 10% over the same period. Similarly, imports from South Korea also decreased by 19%, and the ASEAN market decreased by 15%, reaching 33.5 billion USD.

On the other hand, exports show signs of recovery as the decline narrows. Agricultural products, rice, and fruits are the "salvation" for exports thanks to rising prices and market opening opportunities. 33 products achieved export turnover of over 1 billion USD.

The Ministry of Industry and Trade forecasts that the last months of this year will still be difficult due to increasingly fierce strategic competition among major countries, increased uncertainty, slow global economic recovery, and the prolonged Russia-Ukraine conflict. Israel and Hamas forces are facing a number of new risks and challenges to global food security.

In addition to stimulating domestic consumption, the ministry said it will speed up negotiations and sign agreements and trade commitments with potential partners (UAE, MERCOSUR) to diversify markets, products, and supply chains.

Vnexpress.net