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Trade surplus in Vietnam reaches record in seven months

07:04 | 15/08/2020

Vietnam's trade balance reached USD 2.77 billion in July, lifting total trade surplus to USD 8.23 billion in the first seven months of 2020, according to the latest data of the General Department of Vietnam Customs.

vietnams trade surplus in 7 months reached us 65 billion Vietnam's trade surplus in 7 months reached US$6.5 billion
vietnam achieved trade surplus of usd 4 billion in the first six months Vietnam achieved trade surplus of USD 4 billion in the first six months
vietnam trade surplus reached nearly usd 4 billion in 5 months Vietnam trade surplus reached nearly USD 4 billion in 5 months
trade surplus in vietnam reaches record in seven months
Vietnam’s trade balance posted positive US$2.77 billion (Photo: Industry and Trade News)

Vietnam’s trade balance posted positive US$2.77 billion in July, lifting total trade surplus to $8.23 billion in the first seven months of 2020, according to VOV.

The number was much higher than the General Statistics Office (GSO)'s estimate of USD 6.5 billion in late July and a record high for a seven-month value. This was also Vietnam's third month in a row recording a trade surplus despite the adverse impacts of the Covid-19 pandemic on the economy.

The total import-export turnover in July was USD 46.96 billion, up 8.5 percent from June, of which export value increased 10.2 percent to USD 24.87 billion and imports rose 6.7 percent to USD 22.09 billion. Vietnam's export value reached USD 147.6 billion, up 1.5 percent year-on-year while import value was USD 129.2 billion, down 3 percent year-on-year.

trade surplus in vietnam reaches record in seven months
The total import-export turnover in July was USD 46.96 billion (Photo: Economy and Urban)

Top export products include telephones, mobile phones and parts, computer and electrical products and components, machinery, equipment and spare parts, textile and footwear. In July, telephones, mobile phones and parts surpassed computers, electronic products and components to become the group with the highest export value of the country. On the other hand, high trade surplus may be worrisome as this was a result of declines in imports – a sign of production stagnation.

Trade surplus soared because domestic production declined as the country narrowed imports of input materials,” a Ministry of Planning and Investment leader told Investment newspaper.

Vietnam usually relies on imports of input materials for production, yet imports of these product groups in the first seven months of 2020 were down 3 per cent. Data showed imports of fabrics, steel and other materials for textile and footwear declined by more than 10 per cent.

trade surplus in vietnam reaches record in seven months
Imports of consumer goods decreased by 7.3 per cent to $9.08 billion. (Photo: Industry and Trade News)

According to a report for the Government, the Ministry of Planning and Investment said in the last seven months, imports of material groups which accounted for 93.5 per cent of total import turnover were down 2.6 per cent to an estimated $130.25 billion. Meanwhile, imports of consumer goods decreased by 7.3 per cent to $9.08 billion.

In the future, to facilitate export activities, the Ministry of Industry and Trade is planning to implement a series of solutions such as promoting trade through e-commerce; strengthening information about free trade agreements; continuing to cut unnecessary import and export procedures; and requesting the Vietnamese trade services abroad to seek new markets for Vietnamese goods.

The ministry will announce the list of reputable exporters in 2020 on August 20. This is one of the important trade promotion activities, aiming to facilitate foreign partners to explore and promote trade with Vietnamese enterprises.

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