Trade balance accrues upward trajectory

Vietnam records a trade surplus worth US$500 million in the first half of June and US$70 million by mid-June.

According to the General Department of Vietnam Customs, the country racked up US$10.178 billion in the first half of June, thus increasing the total value of exports by June 15 to US$111.26 billion. Elsewhere, imports stood at US$9.693 billion during the first two weeks of June and US$111.193 billion by mid-June.

As such, the country recorded a trade surplus worth US$500 million in the first half of June and US$70 million by mid-June.

Three categories saw their export turnover surpass US$1 billion during the first half of this month. Telephones topped the list of exports with the total turnover amounting to US$1.714 billion in the first half of June and US$21.43 billion by mid-June. This category was followed by computers, electronic items, and components with the combined export value of US$1.427 billion during the first two weeks of June and US$13.971 billion by mid-June.

Apparel exports earned US$1.401 billion during the first half of June, thus bringing the total turnover of the category to US$13.586 billion by mid-June.

Though the country experienced a trade surplus of US$634 million during the final two weeks of May, the trade balance still sustained a deficit of US$434 million over the first five months of 2019.

This year’s trade balance is likely to see non-periodic and unpredictable fluctuations, experts said.

The soaring inflows of foreign direct investment (FDI) seen over the first five months of 2019 are expected to give a big push to exports during the remaining months of the year.

The total registered and additional foreign capital between January and May 20 enjoyed a year on year surge of 27.1 per cent. Notably, the disbursement of foreign direct investment (FDI) in the reviewed period saw an annual hike of 7.8 per cent.

The National Assembly has set a target of increasing exports by 7 - 8 per cent during 2019. However, this remains a challenging target amid slowdowns in the global economy and trade, according to the Ministry of Industry and Trade.