Two-way trade with US soars by 21%

Two-way trade between Viet Nam and the US topped US$1.71 billion in January, a year-on-year increase of 21.3 per cent, according to data released by the US Department of Commerce on Tuesday.

While imports from the US and the country’s exports to the market both grew substantially over the same period last year, imports from the US grew at a faster rate.

In January, Viet Nam imported $334.6 million worth of goods from the US, surging 29.16 per cent against the same period last year, while exports to the US were worth $1.38 billion, up 19.53 per cent year-on-year.

During the month, apparels posted the highest export turnover at $548.8 million, marking a yearly rise of 19.5 per cent; followed by footwear at $171 million, an increase of 24 per cent; and wooden goods at $158.6 million, a 15 per cent rise from the same period last year.

Export items to register high turnover also included electrical machinery and equipment at $69.4 million, and seafood at $61.7 million.

Meanwhile, cotton, machinery and mechanical appliances, iron and steel, vehicles and components were among Viet Nam’s key imports from the US.

Earlier, Vietnamese exporters were warned that they would face greater difficulties in exporting products to the US market this year due to trade barriers, rising production costs and competition from China.

The increase in the cost of raw materials since the beginning of this year had made domestic exporters less competitive, especially in the wood, textile and garment, and processed foodstuff sectors, said Nguyen Duy Khien, head of the Ministry of Industry and Trade’s American Department.

Businesses had also faced difficulties in accessing bank credit and the resulting capital shortage had hampered expansion of production for exporters.

Furthermore, US trade barriers aimed at protecting domestic production with legislation such as the Farm Bill and the Lacey Act had caused difficulties in the export of Vietnamese shrimp, tra and basa fish, Khien said.

He suggested exporters take several steps to improve economic relations between the two countries.

Carrying out market research on US market demands, as well as legal and technical barriers before trying to penetrate into the US was crucial, he said. — VNS

Tags: Vietnam US Trade