Imports increased over US$ 9 billion, trade deficit with China sharply decreased

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The chart of imports and exports between Vietnam and China in the first 10 months of 2016 and 2017, unit “US$ billion”. Chart: Thai Binh

According to the latest information from the General Department of Vietnam Customs (GDVC), until the end of October 2017, the total export turnover of Vietnam to China reached US$ 26.46 billion, an increase of 53% compared to the same period in 2016 (equivalent to an increase of US$ 9.14 billion). Meanwhile, import turnover was US$ 46.831 billion, an increase of 16.1%.

Thus, until the end of October, Vietnam’s trade deficit from China was nearly US$ 20.4 billion. This was huge gap but the trade deficit compared to 2016 sharply decreased. Specifically, in the same period in 2016, trade deficit was US$ 29.51 billion.

Currently, South Korea is the country which has the largest trade deficit with Vietnam (trade deficit of US$ 26.15 billion).

According to the correspondent, trade balance with China was narrowed thanks to the sharp increase of major export commodity groups to this market such as telephones, computer, electronic products and accessories; machinery, equipment, fruit and vegetables etc.

Of these, telephones hit the highest increase of 460%, equivalent to an increase of US$ 3.234 billion, reaching US$ 3.94 billion and became the second largest export to China.

Computers, electronic products and components increased by 80%, reaching US$ 5.384 billion, remaining the largest export commodity. Also, machinery and equipment increased 50.8%. Fruit and vegetables increased nearly 53%.

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However, it is noted that the commodity groups with sharp increases are mainly from FDI enterprises or foreign enterprises. The telephones and computers made by Samsung gained absolute advantage, meanwhile fruit and vegetables were imported in huge quantities from Thailand, and then exported to China, so the turnover was higher for the year.

With the total turnover of nearly US$ 73.3 billion in the first 10 months of the year, China is still the largest trading partner for Vietnam, accounting for 21.1% of total import and export turnover of the country compared to the same period.