Home » Trade » Trade deficit may shrink to $1b

The nation’s trade deficit this year is on track to shrink from last year’s US$10 billion to just $1 billion due to a sharp decline in imports, said Deputy Minister of Industry and Trade Nguyen Nam Hai.

The natioTrade deficit may shrink to $1bn’s trade deficit this year is on track to shrink from last year’s US$10 billion to just $1 billion due to a sharp decline in imports, said Deputy Minister of Industry and Trade Nguyen Nam Hai.

Hai anticipated that import value this year would total $114 billion, an increase of 6.8 per cent over last year, while export revenue was likely to surge 16.6 per cent to $113 billion.

The country’s total export turnover reached $83.7 billion in the first nine months of the year, rising 18.9 per cent year-on-year, according to the General Statistics Office (GSO). Exports to countries in Asia grew at the fastest pace (27.2 per cent).

Meanwhile, the country’s total import value during the period was $83.7 billion, rising only 6.6 per cent year-on-year. Imports from China accounted for the highest proportion of this figure (24.7 per cent), and imports of high-value items like gold and automobiles plummeted, allowing Viet Nam to enjoy a trade surplus of $34 million through the end of September.

Hai said that this year’s low trade deficit would help improve the country’s international balance of payments and foreign exchange market.

However, the figures also reflected a slowing of domestic production and demand. The country’s industrial production value and retail sales value rose in the first nine months of the year but at a much slower pace than in previous years, the GSO said.

It also noted that the inventory index of the industrial sector remained unchanged in September compared with the prior month, standing at 20.4 per cent despite Government measures to support local producers. — VNS

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