Vietnam will have a surplus for 4th year running

VCN- Although the export growth rate in the first 10 months of this year was less than half compared to the same period in 2017 and 2018, Vietnam had a trade surplus of over US$7 billion. It is forecast that 2019 will be the fourth consecutive year with an export surplus of Vietnamese goods.
tin nhap 20191112163900 Import-export turnover reaches 427 billion USD
tin nhap 20191112163900 Trade deficit reaches nearly 400 million USD in first half of October
tin nhap 20191112163900 Vietnam enjoys growing trade surplus of over US$6.8 billion
tin nhap 20191112163900
In the first 10 months, the proportion of the domestic economic sector continued on anupward trend, accounting for 30.7 percent of total export turnover. Photo: N. Thanh

Prospects of domestic enterprises

According to the latest report by the Ministry of Industry and Trade, by the end of October, the total import and export turnover of goods was estimated at US$427.05 billion, up 7.6 percent over the same period in 2018. In particular, the export turnover was estimated to reach US$217.05 billion, up 7.4 percent; import turnover is estimated at US$210 billion, up 7.8 percent. In the past 10 months, the United States continued to be the largest export market of Vietnam with a turnover of US$49.9 billion, up 26.6 percent over the same period last year; followed by the EU, China and ASEAN markets.

Regarding exporting goods sincethe beginning of the year, the most noticeable point is the clear change in domestic enterprises compared to foreign invested enterprises (FDI). This is shown by the figures, such as the growth rate of 10-month export turnover of the domestic economic sector reaching 16.2 percent, much higher than the growth rate of the foreign-invested sector (3, 9 percent). Thereby, the proportion of the domestic economic sector continued to increase, accounting for 30.7 percent of total export turnover (the same period last year was 28.4 percent). Thus, after achieving a relatively high growth rate in 2018 (14.96 percent), the domestic enterprises continued to be a bright spot in Vietnam's export activities in the first 10 months.

In general, over the past 10 months, the Ministry of Industry and Trade said that the growth rate of 7.4 percent was somewhat slower than the same period in 2018 and 2017 (increasing by 15.3 percent and 21.8 percent, respectively). The result basically followed the set goal of the National Assembly to bring export growth to increase by 7-8 percent in 2019. Up to the present, the country's export turnover of goods has completed 82.5 percent of the target for the whole year. This shows no small effort in exploiting the market, promoting exports and a positive trend in the context of declining global trade.

"The trade balance of goods in 10 months was estimated at a trade surplus of US$7.05 billion, higher than the US$6.83 billion of the whole of 2018. With this development, it is likely that 2019 will be the fourth consecutive year with a trade surplus. Vietnam's economy is shifting from trade deficit to trade surplus in recent years,"said the Ministry of Industry and Trade.

Exports have little fluctuation in the last 2 months of the year

The last two months are close in 2019, although the import and export turnover is usually quite high compared to the beginning of the year because this is the time to prepare goods for the largest shopping occasions.The Ministry of Industry and Trade says that export activities will not have many changes due to the impact of the global economic downturn.

Exports have a number of favorable factors. Specifically, the export of textiles, wood and wooden products, agriculture, and fisheries are often at a high level at the end of the year due to the increasing demand for goods for holidays. In addition, pangasius export to the US market is expected to recover in the near future,according to the preliminary decision of the 15th anti-dumping tax review on Vietnamese pangasius products.The US Department of Commerce (DOC) has announced preliminary tax rates for mandatory and voluntary defendants of US $ 0 / kg; the national tax rate is 2.39 USD / kg. This tax is much lower than the final result of the previous review at 1.37 - 2.39 USD / kg. This is a good signal for pangasius exports to the US market.

However, the Ministry of Industry and Trade also said that many factors hindered export growth. The exports of all kinds of phones, after a sharp increase in the third quarter of 2019 (due to Samsung launching new products), will slow in the fourth quarter of 2019. Exporting goods to China is still facingmany difficulties due to Chinese economic growth slowing down and the impact from trade tensions between the US and China.

"China's economic growth in the third quarter of 2019 was lower than expected, only 6 percent compared to the same period last year. This is also the weakest growth in nearly three decades of this country. From the less vibrant production situation in the context of strong influence from the US-China trade war as well as the decline in domestic consumer demand, not only did the demand drop, the export of Vietnam's agricultural and aquatic products to the Chinese market also faced many difficulties due to its increased inspection and quality control of imported goods before customs clearance,"said the Ministry of Industry and Trade.

From now until the end of the year, the Ministry of Industry and Trade determined to continue closely monitoring the fluctuations of the world situation, especially the development of the US-China trade war to take the initiative in administration and take measures to promote export goods that are able to take advantage of opportunities to export and strengthen strict management against the risk of trade fraud and origin fraud; strengthening research, forecasting and warning measures for trade remedies applied to Vietnam's export goods.

Focus on anti-origin fraud

Regarding origin fraud, especially goods from China and other countries that use Vietnam's origin to take advantage of tariff preferences;answering questions from National Assembly deputies at the 8th meeting, National Assembly XIV on 6/11, Minister of Industry and Trade Tran Tuan Anh emphasized: “The Ministry of Industry and Trade has a list of early warnings about the risk of commercial fraud in a number of items. For example, there are 25 export items to the US and other countries at risk of being taken advantage of, including items such as electronics, plywood, textiles, footwear. The Ministry of Industry and Trade has just issued a circular on suspension of temporary import as well as exporting plywood to the US. This is a commodity that has grown up to over 400 percent in recent years and poses a great risk of trade fraud, originating in the US.

"We are also continuing to coordinate with industry associations and organizations to recommend, provide sufficient and timely information to warn about the risks of trade sanctions as well as taxes.There are many products of other countries that are subject to taxes of the US, EU and many countries on anti-dumping and anti-subsidy taxes. They seek to take advantage of products of Vietnam export to these countries,"said Minister Tran Tuan Anh.

By Thanh Nguyen/Bui Diep

Related News

Latest News

Footwear industry takes bold steps towards green growth

Footwear industry takes bold steps towards green growth

Vietnam is discussing the establishment of a centre for raw materials to support the textile, leather and footwear industries, signalling a bold effort for the billion-US-dollar sectors to enhance sustainability and climb higher up the global value chain.
Vietnam likely earn 5 billion USD from rice exports this year

Vietnam likely earn 5 billion USD from rice exports this year

Vietnam’s rice exports are expected to reach a record turnover of about 5 billion USD this year, as high demand from many large and traditional markets, such as the Philippines and Indonesia, continues.
Australian plums to be available in Vietnam

Australian plums to be available in Vietnam

Australian plums will soon be on shelves in Vietnam under the two-way agricultural market access agreement between the two countries that brings Australian plums to Vietnam and Vietnamese passion fruit to Australia, according to the Australian Government.
How to quarantine imported aquatic products for domestic consumption?

How to quarantine imported aquatic products for domestic consumption?

VCN - Enterprises importing aquatic raw materials for export production or export processing for domestic consumption encounter difficulties in implementing quarantine.

More News

Vietnam trade mission in Germany seeks cooperation in automobile industry

Vietnam trade mission in Germany seeks cooperation in automobile industry

The Vietnam trade mission in Germany coordinated with the Berlin – Brandenburg automotive association (aBB) and authorities of the Vietnamese province of Nam Dinh to hold a roundtable on cooperation in the automobile industry.
New markets help fruit exports grow to record revenues

New markets help fruit exports grow to record revenues

Vietnam's fruit export revenue hit 4.63 billion USD in the first eight months of 2024, representing an increase of 30.6% compared to the same period last year, thanks to the opening of several key markets.
Vietnam aims for green, sustainable tourism

Vietnam aims for green, sustainable tourism

VCN - Green tourism is increasingly gaining attention and becoming an important development direction for many countries, including Vietnam. Green tourism will be an important lever for developing a green economy, helping green growth, towards the goal of achieving Net Zero (net zero emissions) by 2050.
Enhancing the role of localities in developing supporting industries

Enhancing the role of localities in developing supporting industries

VCN - Some localities with great potential for developing supporting industries have proactively issued their own policies to support businesses in training human resources, helping businesses access the global production chain.
Mekong Delta promotes clean agricultural production to achieve Net Zero

Mekong Delta promotes clean agricultural production to achieve Net Zero

Localities in the Mekong Delta region have been progressively developing roadmaps for clean agricultural production as an effort to gradually guide Vietnam's agricultural sector towards the goal of "Net Zero" by 2050.
Wood export target of 15.2 billion USD feasible, challenges remain

Wood export target of 15.2 billion USD feasible, challenges remain

Despite market recovery, the wood industry needs to overcome formidable challenges to realise the export revenue target of 15.2 billion USD for the whole year, according to insiders.
Serious shortage and many impacts on seaport human resources

Serious shortage and many impacts on seaport human resources

VCN - According to the assessment of seaport enterprises in Vietnam, from 2024-2028, human resources at seaports will have strong changes in demand, due to the impact of technological trends to meet the task of developing the seaport economy in Vietnam.
Exports gain momentum

Exports gain momentum

VCN - With a highly open economy like Vietnam, exports are an important driving force for economic growth. In many major markets, the recovery in year-end consumption of goods creates more room for industries to contribute to export turnover.
The driving force for businesses to "sprint" at the end of the year

The driving force for businesses to "sprint" at the end of the year

VCN - Although the economy has shown many signs of recovery and business results are positive, the difficult period has not yet passed, forcing businesses to continue to make efforts to "sprint" in the last months of 2024.
Read More

Your care

Latest Most read
Footwear industry takes bold steps towards green growth

Footwear industry takes bold steps towards green growth

Vietnam is discussing the establishment of a centre for raw materials to support the textile, leather and footwear industries, signalling a bold effort for the billion-US-dollar sectors to enhance sustainability and climb higher up the global value chain.
Vietnam likely earn 5 billion USD from rice exports this year

Vietnam likely earn 5 billion USD from rice exports this year

Vietnam’s rice exports are expected to reach a record turnover of about 5 billion USD this year, as high demand from many large and traditional markets, such as the Philippines and Indonesia, continues.
Australian plums to be available in Vietnam

Australian plums to be available in Vietnam

Australian plums will soon be on shelves in Vietnam under the two-way agricultural market access agreement between the two countries that brings Australian plums to Vietnam and Vietnamese passion fruit to Australia, according to the Australian Government.
How to quarantine imported aquatic products for domestic consumption?

How to quarantine imported aquatic products for domestic consumption?

VCN - At the same time, ensuring state management of imported aquatic products for processing and export to change the purpose of domestic consumption food.
Vietnam trade mission in Germany seeks cooperation in automobile industry

Vietnam trade mission in Germany seeks cooperation in automobile industry

The Vietnam trade mission in Germany coordinated with the Berlin – Brandenburg automotive association (aBB) and authorities of the Vietnamese province of Nam Dinh to hold a roundtable on cooperation in the automobile industry.
Mobile Version