Exports set to hit a record level

“It will be a real challenge for Vietnam to rein in the deficit in the future”

Vietnam will raise its export revenue by up to 10 per cent this month enabling it to hit a record $71 billion in revenue for 2010.

The Ministry of Industry and Trade (MoIT) last week predicted that Vietnam would earn about $7 billion from overseas shipments this month, up 9.3 per cent from the $6.4 billion made in November.

Overseas prices and demand for Vietnamese products grew strongly recently and were predicted to continue rising in the near future, said head of MoIT’s planning department Le Van Duoc.

Some Vietnamese agricultural, industrial, and mineral and natural resource products have seen striking growth in both price and demand including rice, coffee, pepper, rubber, coal, oil and plastic materials.

Export revenue reached $64.3 billion during January-November, up 24.5 per cent year-on-year. Much of the growth was represented by $34.9 billion from industrial production, which contributed 54 per cent to Vietnam’s total export revenue.

Agricultural, fishery and forestry sectors earned $13.4 billion from overseas shipments, up 21 per cent on-year and contributing 21 per cent to the country’s export turnover.

Duoc said the country wanted to achieve a 10 per cent increase in export turnover to around $78 billion next year, while keeping the trade deficit equal to 18 per cent of exports, or $14 billion.

Vietnam saw $10.7 billion in trade deficit in the first 11 months of this year, equal to 16.6 per cent of its export turnover. “However, excluding gold shipments, the deficit was actually $13.5 billion during January-November, equal to more than 21 per cent of the country’s exports,” Duoc said.

“It will be a real challenge for Vietnam to rein in the deficit in the future, particularly as world prices are rising and Vietnam continues to import the majority of its raw materials, machinery and equipment for local manufacturing,” he said.

Vietnam spent nearly $75 billion on imported goods and products in the first 11 months, up 20 per cent on-year, according to the MoIT. – VIR

Tags: Vietnam exports, Vietnam exports 2010, Vietnam trade