With continuous trade surplus, domestic enterprises make a breakthrough

VCN- The targets for the import-export strategy for 2011-2020, with a vision to 2030, have been basically achieved. From 2016 to now, Vietnam consecutively has an impressive trade surplus and the next year’s trade surplus was higher than the previous year.
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
Huge trade surplus for agro-forestry-aquatic sector Huge trade surplus for agro-forestry-aquatic sector
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
3350-0151-img-8277
Vietnam continuously has a trade surplus;the next year was higher than the previous year. Photo: N.L

Trade surplus sharply increased

The Ministry of Industry and Trade has released an assessment of import and export results according to targets of the import-export strategy for 2011-2020 with a vision to 2030.

Up to the end of 2019, the targets in the strategy were achieved. Average export growth rate for 2015-2019 was 12% per year, higher than the target of 10% set by the 12th National Party Congress.

In 2020, the world economy has beenhit hard by the Covid-19 pandemicand asthe exports of countries in the region decrease compared to the previous year, Vietnam’s exports still reach positive growth. Export turnover in the first nine months of the year reached US$202.4 billion, increasing by 4% year-on-year.

Besides, imports have beencontrolled. The average growth rate of import turnover is lower than the average growth rate of the export turnover.

“The import turnover had an average growth rate for 2015-2020 of 11.2% per year. The average annual growth rate of import turnover in this period was lower than the average growth rate of export turnover (13%), reaching the target of the strategy,”arepresentative of the Ministry of Industry and Trade said.

Notably, the trade balance was in surplus for the whole period with the next year’s trade surplus higher than the previous year. The strategy has set a target of gradually reducing the trade deficit, controlling the trade deficit of about 10% of export turnover in 2015 and reaching a balance of trade equilibrium by 2020.

In fact, from 2016 to now, the trade equilibrium has an export surplus with the gradual increase over the years, respectively US$1.77 billion (in 2016); US$2.11 billion (in 2017); US$ 6.83 billion (in 2018); and US$10.87 billion (in 2019). In the first nine months of 2020, the trade surplus reached US$16.5 billion.

The export structure has shown a positive shift. The total export turnover of processed industrial goods in the first nine months of the year accounted for 84.8% of total export turnover, increasing compared to total export turnover of 78.9% in 2015; while the total export turnover of fuel and minerals only accounted for about 1.1% of the nation’stotal export turnover.

Average export value was about US$2,740 per capita in 2019, up2.5 times compared to 2011. The target of average export value was more thanUS$2,000 per capita under the strategy achieved since 2017.

Domestic enterprises make breakthrough

The Ministry of Industry and Trade said the policy of encouraging export-oriented foreign investment has created favourable conditions for Vietnam to access more international markets, significantly improving export capacity, especially in industry.

In 2001, exports of FDI enterprises reached 45.2% of total turnover, including crude oil. The export share of FDI enterprises has gradually increased, reaching ahigh point of about 71.4% in 2018.

According to the Ministry of Industry and Trade, FDI enterprises have contributed to changing the structure of exports in the direction of reducing the proportion of mining products, primary products and gradually increasing the proportion of manufactured goods (electronic products, computers and components, plastic products, electrical wires and cables, bicycles and accessories).

Before 2003, export turnover of crude oil accounted for nearly half of total export value of FDI enterprises. In the first nine months of 2020, export turnover of crude oil in the total export turnover of FDI enterprises only accounts for 1%.

However, since 2019, exports of domestic enterprises increased sharply, while the exports of the FDI sector increased slowly or decreased, so the export turnover of the FDI sector has gradually decreased. Export turnover of the100% domestic capital sector in 2019 reached US$82.96 billion, increasing by 19% compared to 2018, higher than the 4.2% increase of the FDI sector.

In the first nine months of 2020, the export turnover of FDI enterprises hitUS$131.1 billion, decreasing by 2.8% year-on-year, accounting for 65% of total export turnover across the country; export turnover of the100% domestic capital sector jumpedby 19.5% year-on-year.

Exports of domestic enterprises grew positively amid export of agricultural and fishery products sufferingfrom difficulties, showing the growth of the domestic sector did not mainly depend on export growth of agricultural and fishery products as in previous years, but from industrial products.

A representative of the Ministry of Industry and Trade said that is necessary to pay attention to the connection between FDI firmsand domestic enterprises, making domestic enterprises deeply participate in the value chain for FDI enterprises.

The ministry will focus on solutions to improve institutions and create conditions for FDI enterprises owning high-tech and high-value chains and products to invest in Vietnam andto promote the spillover effects of FDI enterprises on domestic production.

The Ministry of Industry and Trade has also discussed and encouraged large FDI enterprises to enter joint ventures, linkages, develop supporting industries, and increase the rate of localisationthrough domestic suppliers; transfer technology, modern management skills for domestic businesses through joint venture projects in some key industries and fields.

By Thanh Nguyen/Ngoc Loan

Related News

Hai Phong Customs processes more than 1,500 declarations during 2025 Lunar New Year holiday

Hai Phong Customs processes more than 1,500 declarations during 2025 Lunar New Year holiday

VCN - During the 2025 Lunar New Year holiday, Hai Phong Customs Department processed 1,547 declarations.
In the first 15 days of 2025, total import-export turnover reached more than US$34 billion

In the first 15 days of 2025, total import-export turnover reached more than US$34 billion

VCN - Total import-export turnover in the first half of January 2025 reached more than US$34 billion, the trade balance had a deficit of nearly US$2 billion.
Spending US$380 billion for imports, China accounts for 38% of country

Spending US$380 billion for imports, China accounts for 38% of country's imports

VCN - In 2024, the total import turnover of the whole country reached US$380.76 billion, an increase of 16.7% year-on-year (or US$54.41 billion), according to statistics of the General Department of Customs.
Exports sets a record US$ 400 billion

Exports sets a record US$ 400 billion

VCN - By the end of 2024, Vietnam’s total export turnover increased by 14.3% year-on-year to US$ 405.53 billion, the General Department of Vietnam Customs reports.

Latest News

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.
Central industrial hub sets ambitious growth target in 2025

Central industrial hub sets ambitious growth target in 2025

The central province has targeted ambitious growth of up to 10 per cent with some key strategic industrial investment projects in 2025, contributing VNĐ25 trillion (US$1 billion) to the State budget.
Demand for dragon fruit in Tiền Giang Province continues to increase

Demand for dragon fruit in Tiền Giang Province continues to increase

Dragon fruit prices in Tiền Giang Province remain high after the Lunar New Year due to increased demand from China and domestic consumption.
Data centres are attracting investors in Asia

Data centres are attracting investors in Asia

The global data centre market reached new heights in 2024, driven by the growing demand for generative AI, which has triggered a new wave of investment.

More News

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.
Sustainable fashion presents promising niche market for textile manufacturers

Sustainable fashion presents promising niche market for textile manufacturers

The combination of sustainability and culture will open up more opportunities for Vietnamese textile enterprises to strengthen their position in the global market and capture the promising Nordic fashion market.
VN

VN's car industry to diversify supply chain

While China remains a significant supplier, recent trade data highlights Việt Nam’s efforts to diversify supply to meet industry demands.
Exports of agro-forestry-aquatic products down nearly 5 per cent in January

Exports of agro-forestry-aquatic products down nearly 5 per cent in January

Việt Nam’s export value of agro-forestry-aquatic products was estimated at US$5.08 billion in January, marking a 4.9 per cent decline compared to the same period last year.
Thailand reviews anti-dumping tax on Vietnamese steel

Thailand reviews anti-dumping tax on Vietnamese steel

TRAV recommended that the Việt Nam Steel Association (VSA) notify relevant local manufacturers and exporters to answer the investigation questionnaire within the prescribed deadline.
Pangasius fetch record price in early 2025

Pangasius fetch record price in early 2025

Currently, larger pangasius weighing over 1.2kg, are selling at VNĐ32,440 (US$1.29) per kilogram, a record high not seen since 2022.
Việt Nam and India trade reached $15 billion in 2024

Việt Nam and India trade reached $15 billion in 2024

Trade relations between Việt Nam and India continue to flourish, with bilateral trade turnover reaching around US$15 billion in 2024.
Việt Nam

Việt Nam's port firms thrive in 2024

Strategic investments and expansions are expected to further enhance the sector’s performance.
Software exporter looks to new pace of growth

Software exporter looks to new pace of growth

FPT Software (F-Soft) Đà Nẵng plans to earn VNĐ3.6 trillion (US$144 million) in exports in 2025 after introducing a third campus at the FPT Complex and signing a strategic deal with the city.
Read More

Your care

Latest Most read
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

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.
Central industrial hub sets ambitious growth target in 2025

Central industrial hub sets ambitious growth target in 2025

The central province has targeted ambitious growth of up to 10 per cent with some key strategic industrial investment projects in 2025, contributing VNĐ25 trillion (US$1 billion) to the State budget.
Demand for dragon fruit in Tiền Giang Province continues to increase

Demand for dragon fruit in Tiền Giang Province continues to increase

Dragon fruit prices in Tiền Giang Province remain high after the Lunar New Year due to increased demand from China and domestic consumption.
Data centres are attracting investors in Asia

Data centres are attracting investors in Asia

The global data centre market reached new heights in 2024, driven by the growing demand for generative AI, which has triggered a new wave of investment.
US or China: Who will lead in Vietnamese Tra fish imports?

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

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.
Mobile Version