Vietnam has a trade surplus of $20 billion a year with the US, while the current account surplus is over 2 percent of GDP per annum.

“Unlike two years ago, many analysts have warned that Vietnam will m witness a trade deficit. However, I believe the trade deficit will still be within control,’ said Vo Tri Thanh, a respected economist.

The US-China trade war and Chinese yuan devaluation have increased the risk of a widening trade gap, with more imports from China flowing to Vietnam.

Vietnam’s trade balance sustained an estimated deficit of up to US$1.3 billion during May, leading to the total trade deficit amounting to US$548 million for the year’s first five months.

Vietnam faces a possible return to a trade deficit this year after three years of enjoying surpluses, experts said pointing to the sharp rise in imports and increasing difficulties facing exports.

Several years ago, fans of Thai and Japanese goods had only several choices – either buying the products carried across border gates, or going to a few select shops. But now, they can freely choose products at many specialized stores. 

VietNamNet Bridge - The first warning about the ‘Thai goods threat’ was given two years ago when Thai groups took over a number of retail chains in Vietnam. 

VietNamNet Bridge - Economists have said that the increased trade deficit with South Korea is not expected to lead to changes in Vietnam’s economic structure.

Imports from South Korea have been increasing rapidly since the Vietnam-South Korea FTA took effect in late 2015, as Vietnam’s largest trade deficit is now with South Korea, not China.

VietNamNet Bridge - Vietnam’s biggest trade deficit is now with South Korea, followed by China. 

A report of the General Statistics Office (GSO) shows a significant increase in Vietnam’s exports to South Korea in the first four months of the year, reaching $4.4 billion, an increase of 32 percent compared with the same period last year. 

Economists, warning about increasingly high investments by Chinese in Vietnam, are concerned that Chinese products made in Vietnam and bearing Vietnam labels may bring a bad reputation to Vietnam’s products.

VietNamNet Bridge - Vietnam’s GDP has increased by 5.5 times in the last 15 years, while the trade deficit with China has increased by 171 times. 

VietNamNet Bridge - Vietnam spent $32 billion on imports from China in the first eight months of the year, including products which are plentiful in Vietnam.

Vietnam’s export growth rate was modest at 5.7 percent in the first half of 2016, the lowest in the last five years. This has raised concerns that the 6.7 percent GDP growth rate may be unattainable, while state budget revenue will shrink.

VietNamNet Bridge - Analysts have noted signs of a decrease in imports from China, while imports from South Korea rose by 7.9 percent in the first six months of the year.

VietNamNet Bridge - More than 40 pangolins have died because of asthenia caused by poor eating in a non-natural environment. Only 20 remain stay alive.

VietNamNet Bridge - Many Chinese smartphone brands have entered Vietnam in the last three years but have not sold that well. 

VietNamNet Bridge - If Russia and Belarus focus on making low-cost trucks, they will find firm positions in the Vietnamese market.

VietNamNet Bridge - Land prices not only depend on position, but also on urban development plans.