H1 imports from Asean up

Vietnam’s imports from Asean countries in the first six months of this year grew more than 28 percent year-on-year to over $7.5 billion, according to latest statistics released by the general Department of Customs.

Vietnam’s trade deficit with Asean hit $2.34 billion, accounting for 35 percent of the total of the country in the period. Two-way trade between Vietnam and other Southeast Asian markets saw a 23.9 percent year-on-year rise.

Of all the imports from Asean, Vietnam spent more than $1.5 billion on petroleum and oil products, a 12.8 percent increase compared with the same period of last year.

Car and motorbike components imports witnessed the highest growth with 60 percent and 65 percent respectively, mostly from Thailand.

Main products imported from Asean to Vietnam are essential goods, materials, machinery, equipment and components.

The nation’s exports to Asean markets picked up by nearly $800 million to $5.24 billion, up 18 percent from a year ago. According to the general Department of Customs, the country’s steel exports to Asean in the period soared 140 percent year-on-year to $278 million.

Petroleum, plastic goods, and equipment/machinery exports spiked 53.3 percent, 81 percent and over 101 percent respectively. Rice and crude oil, however, dipped in export value. Steel, rice and petroleum are still main exports to Asean.

Asean is considered a potentially large market for Vietnam as an export-dependent economy. The country’s exports, however, are chiefly unprocessed and semi-processed materials.

Vietnam is facing a possible decline in exports to Asean due to rapid exhaustion of natural resources. Meanwhile, Asean trade liberalisation will lead cheap exports to flow into the country.

Thailand, Malaysia and Singapore are Vietnam’s biggest Asean trading partners, but the country still has a trade deficit with these markets. In January-June, Vietnam spent more than $2.5 billion on Thai products but exported a mere $585 million worth of goods to Thailand.

Tags: Vietnam Asean trade