Trade deficit with China poised to hit record high
VietNamNet Bridge – Viet Nam's trade deficit with China could hit a new record high of US$27 billion in 2014, a 14-per cent year-on-year increase, experts warned.
According to the Viet Nam General Department of Customs, the country spent $31.27 billion on imports from China, accounting for more than 29 per cent of Viet Nam's total import value. — Photo kinhdoanhnet
The trade deficit is happening in spite of measures to reduce imports from China. The warning is based on Viet Nam's trade deficit with its neighbour in the first nine months of the year which reached $20.17 billion, a 17-per cent year-on-year increase.
If the momentum of the deficit remains at this level from now till year-end, it could reach $27 billion, the experts predicted.
According to the Viet Nam General Department of Customs, the country spent $31.27 billion on imports from China, accounting for more than 29 per cent of Viet Nam's total import value.
The top imports include seven goods with an import value of more than $1 billion each such as machines, equipment, mobile phones and computers.
Viet Nam's export revenue to China in the first nine months of the year reached nearly $11.1 billion or 10 per cent of Viet Nam's total import value.
Two groups of products with an import turnover of more than $1 billion include the group of computers, electronic products and accessories with $1.5 billion and the group of crude oil with $1.05 billion.
According to the Ministry of Industry and Trade, Viet Nam has taken measures such as increasing exports, enhancing domestic production to reduce imports from China and diversifying import markets. However, the importation of Chinese goods, especially materials, have continued to rise.
The ministry said Viet Nam's exports to China have grown by an average of $800 million every year in the last three years while imports have expanded by $3 billion to $3.5 billion every year.