Vietnam Jan-Oct trade deficit with China hits record high of US$29 billion

The US-China trade war may be behind such a record figure.

Vietnam’s trade deficit with China hit a record high of US$29 billion in the first ten months of 2019, an increase of nearly US$9 billion over the same period last year, according to the General Department of Vietnam Customs (GDVC).

In the January – October period, Vietnam spent over US$62 billion on importing goods from China, up 16.1% year-on-year and accounting for 29.6% of the country’s total imports. While the imports increased sharply, Vietnam's exports to China were about US$33 billion, down 1.4% year-on-year or about US$500 million, accounting for 15% of total exports.

Vietnam ran a deficit of over US$24 billion with its giant neighbor in the whole 2018.

A report from Bao Viet Securities Company (BVSC) attributed the US – China trade war to the widening of the deficit. Since the trade war between the two major countries broke out, many experts and regulators warned that Chinese goods would seek to penetrate other markets to compensate the shortfall from the US market. Accordingly, Vietnam with a large consumer market and favorable natural conditions is one of the destinations for Chinese goods, stated BVSC.

 Data: GDVC. Chart: Ngoc Thuy. 

In the January – October period, the US remained Vietnam's biggest export market, spending US$50.30 billion on Vietnamese goods, up 27.6% year-on-year and accounting for 23% of Vietnam's total exports, followed by the European Union with US$34.55 billion, down 0.7%, and China with US$33 billion, down 1.4%. 

Meanwhile, China remained Vietnam's largest import market with turnover of US$62.3 billion, a 16.1% climb year-on-year and making up 29.6% of total imports

South Korea claimed the second place by exporting US$39.43 billion worth of goods to Vietnam, up 0.5% year-on-year, followed by ASEAN with US$26.67 billion, up 2.1%.  

 Data: GDVC. Chart: Ngoc Thuy.

Vietnam recorded a trade surplus of US$1.86 billion in October, leading to a surplus of US$9.01 billion in the first 10 months of 2019, up 23% year-on-year. This is also a record high figure for the 10-month period.

Customs statistics show that Vietnam’s external trade in October reached U$46.61 billion, up 3.3% from September, of which exports were US$24.23 billion, up 3.7%, and imports US$22.37 billion, up 2.39%.

 

In the first 10 months of the year, the country’s external trade hit US$428.63 billion, up 8% compared to the same period in 2018. Upon breaking down, exports totaled US$218.82 billion, up 8.3% year-on-year, and imports reached US$209.81 billion, representing an increase of 7.7%.

In October, foreign-invested companies posted a total import-export value of US$28.93 billion, including $16.44 billion in exports, up 1.4% from September, and US$12.48 billion in imports, down 4%.

Between January and October, foreign direct investment (FDI) companies recorded a trade turnover of $271.13 billion, accounting for 63.3% of the country's and up 4.3% from the same period last year. Meanwhile, the domestic sector recorded a trade value of US$157.5 billion, or 36.7% of Vietnam’s total trade revenue, up 14.9% year-on-year.

The FDI sector posted exports of US$149.83 billion in the January – October period, up 4.8% year-on-year, accounting for 68.5% of Vietnam’s exports, while the sector imported goods worth US$121.3 billion during the period, up 3.7% year-on-year, accounting for 57.8% of total imports.

This resulted in the sector's trade surplus of US$28.53 billion during the period. Hanoitimes

Ngoc Thuy

Vietnam sees US$9 billion trade surplus in Jan-Oct

Vietnam sees US$9 billion trade surplus in Jan-Oct

Vietnam earned a trade surplus of US$9.01 billion in the January-October period this year, the highest ever, up 23% year-on-year due to the strong export of phones, computers and textiles.

US-Vietnam trade war heats up cross-border e-commerce battle

US-Vietnam trade war heats up cross-border e-commerce battle

To dominate the cross-border e-commerce market, Amazon has set up a representative company in Vietnam, while Alibaba has organized a series of workshops.

 
 

Other News

.
Multinational supply chain evades small industry
Multinational supply chain evades small industry
BUSINESSicon  29/04/2021 

Foreign investments in Vietnam have the ability to change the economics of many of the country’s support industries, who are continually struggling to be part of the larger supply network.

Four-month FDI totals $12.25 billion
Four-month FDI totals $12.25 billion
BUSINESSicon  29/04/2021 

In the first four months to April 20, foreign investors pumped 12.25 billion USD in Vietnam, equal to 99.3 percent of the amount recorded in the same period last year.

Flower and ornamental plant production on the rise
Flower and ornamental plant production on the rise
BUSINESSicon  28/04/2021 

Flower and ornamental plant production has dramatically developed in recent years, bringing high economic value.

Contract enforcement, bankruptcy filings stall because of lack of regulations
Contract enforcement, bankruptcy filings stall because of lack of regulations
FEATUREicon  29/04/2021 

Vietnam’s judicial agencies seemingly cannot catch up with business environment reform. Two judicial indicators – contract enforcement and business bankruptcy – have not seen considerable improvement.

ST25 is a generic rice variety, not a brand: NOIP
ST25 is a generic rice variety, not a brand: NOIP
FEATUREicon  28/04/2021 

The National Office of Intellectual Property (NOIP) says the ST25 rice variety has been granted a Protective Certificate No 21.VN.2020 under Decision No 45/QD-TT-VPBH dated March 6, 2020 by the director of the Department of Crop Production.

49% of Vietnamese delete shopping apps on mobile devices
49% of Vietnamese delete shopping apps on mobile devices
BUSINESSicon  28/04/2021 

The increase in app deletions shows that Vietnamese e-commerce platforms need to improve the quality of services in order to retain customers.

Listed companies look to tap real estate segment
Listed companies look to tap real estate segment
BUSINESSicon  27/04/2021 

A series of listed businesses on the stock market have announced plans to expand and tap real estate investment.

More farming products sold on e-commerce sites
More farming products sold on e-commerce sites
BUSINESSicon  27/04/2021 

The e-commerce sites of Vietnam Post and Viettel Post saw 33 more suppliers of agricultural products and regional specialities open new booths in the first 10 days of April.

Recruitment demand soars in textile & garment, IT sectors
Recruitment demand soars in textile & garment, IT sectors
BUSINESSicon  27/04/2021 

The effectiveness of free trade agreements, especially the EU– Vietnam Free Trade Agreement, has helped to increase export orders for textile and garment enterprises in Vietnam, 

HCM City taxman wants to tax apartments for lease
HCM City taxman wants to tax apartments for lease
BUSINESSicon  27/04/2021 

The HCMC Tax Department has proposed piloting a plan to tax apartments for lease in five residential blocks in District 11.

Local banks target high profits
Local banks target high profits
BUSINESSicon  27/04/2021 

During the “season” of shareholders’ meetings, Vietnamese banks are confident about their plans to increase profits by several trillion dong in 2021. Several banks have set a record growth target of up to 30%-50%.

VEPR: Vietnamese economy could grow by 6.3 pct in 2021
VEPR: Vietnamese economy could grow by 6.3 pct in 2021
BUSINESSicon  26/04/2021 

The Vietnamese economy could grow by about 6-6.3 percent in 2021, said chief economist Pham The Anh from the Vietnam Institute for Economic and Policy Research (VEPR) 

Business stories: The bosses with the most leisure time
Business stories: The bosses with the most leisure time
FEATUREicon  27/04/2021 

Company presidents Tran Dinh Long and Dang Thi Hoang Yen have time to go to cafés and don’t attend shareholder meetings.

Positive growth revisions on the cards after resilient Q1
Positive growth revisions on the cards after resilient Q1
BUSINESSicon  26/04/2021 

With its relatively good economic growth in the first quarter driven by surging manufacturing and processing activities and strong control of COVID-19, 

Vietnamese companies lower 2021 targets despite brighter economic outlook
Vietnamese companies lower 2021 targets despite brighter economic outlook
BUSINESSicon  26/04/2021 

Even though economic growth is expected to strongly recover this year as the pandemic has been contained, companies in many sectors have still lowered their profit targets.

Shares to gain on stable cash flow and Q1 positive earnings
Shares to gain on stable cash flow and Q1 positive earnings
BUSINESSicon  26/04/2021 

Shares are forecast to rebound this week on the positive Q1 earning results and stable cash flow, analysts said.

E-commerce workforce downsized due to COVID-19
E-commerce workforce downsized due to COVID-19
BUSINESSicon  26/04/2021 

The proportion of enterprises with employees specialised in e-commerce decreased significantly last year compared to previous years

National Quality Awards 2019-2020 bestowed on 116 businesses
National Quality Awards 2019-2020 bestowed on 116 businesses
BUSINESSicon  25/04/2021 

The Vietnam National Quality Awards 2019-2020 were presented at a ceremony in Hanoi on April 25, honouring 116 companies with remarkable achievements

China benefits the most from Vietnam’s trade surplus
China benefits the most from Vietnam’s trade surplus
BUSINESSicon  25/04/2021 

Vietnam has joined many multilateral and bilateral trade agreements in recent years. The question is what the country receives from these trade relations.

Vietnam imposes anti-dumping duty on Chinese aluminum imports
Vietnam imposes anti-dumping duty on Chinese aluminum imports
BUSINESSicon  25/04/2021 

The domestic industry has been affected due to the dumping of Chinese aluminum imports in recent years.

 
 
 
Leave your comment on an article

OR QUICK LOGIN