Vietnam confident to gain trade surplus of US$7 billion in 2020

VCN – Although seriously affected by the Covid-19 pandemic, Vietnam's merchandise exports recorded positive signs of recovery from the third quarter of 2020. Motivated by the current growth momentum, it is forecasted that the whole year’s exports will reach about US$267 billion, with a trade surplus of US$7 billion.
Nation racks up trade surplus of US$17.3 billion by mid-October Nation racks up trade surplus of US$17.3 billion by mid-October
Trade surplus hits record high of US$17 billion over nine-month period Trade surplus hits record high of US$17 billion over nine-month period
Import & export reaches $361.5 billion, trade surplus continues hitting new record Import & export reaches $361.5 billion, trade surplus continues hitting new record
4535-3452-11-2516-1585646556468
The whole year’s exports are expected to record a year-on-year increase of 1%. Photo: TB

Exports in third quarter of 2020 reach US$80.07 billion

From the beginning of the year to the end of September, Vietnam's merchandise export activities still maintained positive growth. This makes more sense when regional and world economies recorded negative growth. According to the International Trade Center, the export turnover of 44 countries at the end of July of 2020 decreased by 12.4%.

According to statistics by the Ministry of Industry and Trade, the export turnover in the nine months was estimated at a year-on-year increase of 4.1%. Notably, in the third quarter of 2020, the export turnover reached US$80.07 billion, up 11% over the same period last year and up 34% compared to the second quarter of 2020 (up 26.6% compared to quarter 1 of 2020).

Deputy Minister of Industry and Trade Do Thang Hai said: “This shows that exports recognized a positive recovery in the third quarter of 2020. This recovery is concentrated in the group of industrial products, with an increase in export turnover of 4.7% over the same period in 2019, accounting for 84.6% of the total export turnover.”

The Government’s recent report to the Standing Committee of the National Assembly on the implementation of the Socio-Economic Development Plan 2020, the Socio-Economic Development Plan projected for 2021 has given a comprehensive assessment on imports and exports from the beginning of the year. Specifically, the scale of import and export decreased sharply due to the interruption of the supply of raw materials for production and the narrowing of export markets amid the pandemic. The Vietnam-EU Free Trade Agreement (EVFTA) taking effect from August 1, 2020 has created more room for import and export activities. Besides, some export markets still maintain good growth momentum such as China, the US.

It can be seen that the most notable story in exports from the beginning of the year to now is the effectiveness of the EVFTA from August 1. Mr. Tran Thanh Hai, Deputy Director of Import and Export Department (Ministry of Industry and Trade), said that, after two months since the effective date of the EVFTA, authorized organizations have granted more than 20,000 sets of certificates of origin (C / O) form EUR.1 to 28 EU countries.

Turnover of goods with C/O in August 2020 was US$310 million and in September was US$519 million.

“The turnover has clearly increased, showing that enterprises have grasped the regulations to apply incentives. The items that have been granted C / O form EUR.1 are mainly footwear, seafood, plastic and plastic products, coffee, garments, textiles, bags, suitcases, vegetables, rattan, bamboo products and agricultural products. Among them, the best products that took advantage of the EVFTA were footwear and seafood," said Mr. Tran Thanh Hai.

Trade surplus for the whole year will be about US$7 billion

Deputy Minister Do Thang Hai said the Ministry of Industry and Trade has reviewed carefully each sector and industry to update the management scenario, consider solutions to overcome difficulties, promote production and export for the last months of the year. According to the assessment, industrial production, export and domestic trade for the whole year 2020 are more positive than those in July 2020. Based on the current situation, it is expected that Vietnam's exports for the whole year will be able to achieve an increase of 3-4%.

Regarding the import and export results for the whole year, the Government’s report has also given more detailed figures.

The total import-export turnover estimated for the whole year will reach about US$527 billion, up 1.8% compared to 2019. Of which, the export turnover will be about US$267 billion, an increase of about 1% compared to 2019; the import turnover will be about US$260 billion, an increase of about 2.6% compared to 2019; trade surplus will be about US$7 billion. The proportion of exports of foreign-invested enterprises (excluding crude oil) will account for about 65% of the total export turnover, down from 2019 (about 67.8%); Exports of domestic enterprises for the whole year is estimated to increase 9.87% compared to 2019.

In the last months of the year, to further promote exports, Deputy Minister Do Thang Hai stated that the Ministry of Industry and Trade will continue to research, propose and take more drastic measures in exploiting and accessing key markets, maintain and expand market share; preventing reducing orlosing export markets, especially for key export products; focus on reviewing administrative procedures on import and export in order to promote exports, facilitate and effectively support enterprises.

Vietnam achieves record trade surplus of $13.5 billion Vietnam achieves record trade surplus of $13.5 billion

VCN – Import - export turnover in August topped $50 billion and the trade surplus stood at ...

"In addition, one important solution by the Ministry of Industry and Trade is to increase the implementation of trade promotion forms using online tools to maintain the market, relationships with partners and assist enterprises to quickly find partners for agricultural products, essential goods andanti-pandemic products; enhance IT application through the e-commerce environment and digital technology platforms, take advantage of opportunities to promote e-commerce to encourage strong development of domestic and export markets,” Deputy Minister Do Thang Hai said.

According to the Ministry of Industry and Trade, in September 2020, Vietnam's imports saw a month-on-month increase of 6.5% and a year-on-year increase of 12.6%. This is a positive signal that domestic production has recovered better than previous months. In the third quarter of 2020, the import turnover reached US$68.54 billion, up 3% over the same period last year and 18.5% over the second quarter of this year (up 15.2% compared to the first quarter). This shows that production has restarted, and imports have increased.

Generally, in the first nine months of 2020, imports saw a decline of 0.7% over the same period last year (it increased by 8.3%). Items required to be controlled and not encouraged to import,dropped 15.3% over the same period last year such as: less than 9-seat cars down 44.2%; cameras and camcorders down 10%; vegetables and fruits down 32.3%). Meanwhile, the items that need to be imported, mainly raw materials for production, only decreased by 0.3% over the same period last year.

By Thanh Nguyen/ Huyen Trang

Related News

The government seeks approval for revised GDP, CPI targets

The government seeks approval for revised GDP, CPI targets

VCN - The Government submitted to the National Assembly for consideration and comments on adjusting the target for the growth rate of gross domestic product (GDP) to 8% or more; the average growth rate of the consumer price index (CPI) to about 4.5-5%.
Vietnam kicked off the year with a strong start in trade, exceeding US$63 billion in the first month

Vietnam kicked off the year with a strong start in trade, exceeding US$63 billion in the first month

VCN - Data from the General Department of Vietnam Customs indicates a softening of both exports and imports in January 2025, relative to the same month in 2024.
Exports witness a rise of US$1 billion in the first 15 days of 2025

Exports witness a rise of US$1 billion in the first 15 days of 2025

VCN - Compared to the same period in 2024, exports in the first half of January 2025 increased by more than 6%, equivalent to nearly USS$1 billion.
US or China: Who will lead in Vietnamese Tra fish imports?

US or China: Who will lead in Vietnamese Tra fish imports?

VCN - Given that tra fish is a key export commodity for Vietnam's seafood industry, the question arises whether the United States will surpass China as the leading importer of this product in 2025.

Latest News

Embracing green exports: a pathway to enter global supply chains

Embracing green exports: a pathway to enter global supply chains

This shift presents both a challenge and an opportunity for Vietnamese businesses to innovate and enhance their competitive edge in the international arena.
New policy proposed to prevent transfer pricing, tax evasion of FDI enterprises

New policy proposed to prevent transfer pricing, tax evasion of FDI enterprises

The ministry proposes to issue a decree on the establishment, management and use of the Investment Support Fund to stabilise the investment environment, encourage and attract strategic investors and multinational corporations.
Việt Nam’s durian exports to China plummet by 80%

Việt Nam’s durian exports to China plummet by 80%

This sharp decline has had a direct impact on Việt Nam’s fruit and vegetable export revenue, which stood at US$416 million in January 2025, marking a 11.3 per cent decrease month-on-month and a 5.2 per cent drop year-on-year.
Coconut exports reach 14-year high

Coconut exports reach 14-year high

In 2024, fresh coconut and coconut product exports surpassed US$1 billion, marking the highest figure in the past 14 years.

More News

Shrimp exports grow in the first month of 2025

Shrimp exports grow in the first month of 2025

According to data from the Việt Nam Association of Seafood Exporters and Producers (VASEP), shrimp products recorded a 13 per cent increase in export value in January 2025, reaching a total of $273.3 million.
Rice export prices drop, but decline expected to be short-term

Rice export prices drop, but decline expected to be short-term

Việt Nam’s rice export prices have declined, reaching their lowest level in three years.
Key agro products expected to maintain export growth this year

Key agro products expected to maintain export growth this year

At present, agricultural exports, such as rice, coffee and seafood, have steadily secured a stable place in major global markets.
EU issues 12 warnings against Việt Nam’s food and agricultural exports

EU issues 12 warnings against Việt Nam’s food and agricultural exports

The Việt Nam SPS Office has reported that some Vietnamese export products failed to meet the EU’s stringent standards.
Việt Nam to impose VAT on low-value express-imported goods

Việt Nam to impose VAT on low-value express-imported goods

Việt Nam will end a previous policy that exempted imported goods valued under VNĐ1 million (US$39.4) from taxes when shipped via express delivery.
Exchange rate risks need attention in near future

Exchange rate risks need attention in near future

VCN - Exchange rate developments in 2025 are considered to be quite complicated due to US policies related to trade and investment.
Import and export turnover reaches about US$29 billion in the second half of January 2025

Import and export turnover reaches about US$29 billion in the second half of January 2025

VCN - Vietnam's total import and export turnover in the second half of January 2025 (January 16-31, 2025) reached US$28.9 billion, the latest preliminary statistics of the General Department of Vietnam Customs reported.
Market edges up slightly as liquidity remains low

Market edges up slightly as liquidity remains low

Market breadth remained positive, with 161 gainers outnumbering 144 decliners.
Business regulations must be trimmed for development of enterprises: Experts

Business regulations must be trimmed for development of enterprises: Experts

The General Statistics Office (GSO)'s socio-economic report for January 2025 reveals that while over 33,400 newly established or resumed businesses entered the market - marking a 15% increase compared to January 2024 - more than 58,300 businesses withdrew from the market, representing a growth of 8.1% on year.
Read More

Your care

Latest Most read
Embracing green exports: a pathway to enter global supply chains

Embracing green exports: a pathway to enter global supply chains

This shift presents both a challenge and an opportunity for Vietnamese businesses to innovate and enhance their competitive edge in the international arena.
New policy proposed to prevent transfer pricing, tax evasion of FDI enterprises

New policy proposed to prevent transfer pricing, tax evasion of FDI enterprises

The ministry proposes to issue a decree on the establishment, management and use of the Investment Support Fund to stabilise the investment environment, encourage and attract strategic investors and multinational corporations.
Việt Nam’s durian exports to China plummet by 80%

Việt Nam’s durian exports to China plummet by 80%

This sharp decline has had a direct impact on Việt Nam’s fruit and vegetable export revenue, which stood at US$416 million in January 2025, marking a 11.3 per cent decrease month-on-month and a 5.2 per cent drop year-on-year.
Coconut exports reach 14-year high

Coconut exports reach 14-year high

In 2024, fresh coconut and coconut product exports surpassed US$1 billion, marking the highest figure in the past 14 years.
Shrimp exports grow in the first month of 2025

Shrimp exports grow in the first month of 2025

According to data from the Việt Nam Association of Seafood Exporters and Producers (VASEP), shrimp products recorded a 13 per cent increase in export value in January 2025, reaching a total of $273.3 million.
Mobile Version