Trade deficit climbs to $4.7bil

The country’s trade deficit estimatedly hit US$4.7 billion in the first four months of this year, accounting for about 23 per cent of the total export value in the same period, according to the General Statistics Office (GSO).

The ratio is 3 per cent higher than the 20-per-cent cap set by the Government.

The trade deficit mainly can be blamed on the sharp increase in import value to $24.8 billion, up nearly 36 per cent against the corresponding period last year.

Le Minh Thuy, deputy director of the GSO’s trade department, said: “It will not be easy for Viet Nam to rein in the ratio below the 20-per-cent cap.”

She attributed the higher import value to rising prices in a wide range of raw materials, goods, equipment and machines in the global market and higher domestic demand.

Viet Nam imported 2.5 million tonnes of steel and iron worth $1.63 billion, an 18 per cent rise in volume and roughly a 34 per cent in value.

The country also spent about $768 million to import 199,000 tonnes of other kinds of metal products, up 50 per cent in volume and 134 per cent in value.

Foreign investors took the lead, accounting for a total import value of $10.3 billion.

According to the GSO, export revenue in the first four months totalled $20.1 billion, accounting for a more modest increase of 8.9 per cent.

However, export growth was relatively positive due to the economic recovery in domestic and global markets, Thuy said.

Foreign companies topped the list of high earners, with a combined export value at $11.2 billion, up 32 per cent.

“This reflects the more active and professional operation of foreign firms and they have already capitalised on opportunities from the recovery to sharply boost exports, whereas local companies have not taken full advantage of the opportunities,” she said.

The textile and garment industry earned $3.4 billion from exports, up 19 per cent. Wood and wooden furniture hit $1.7 billion, a 32 per cent increase.

Viet Nam News

Tags: Vietnam trade, Vietnam trade Deficit