return icon Vietnamnet.vn

Vietnam buys Chinese goods, from onions to cars, why?

VietNamNet Bridge - The majority of Vietnamese say they don’t want imports from China, but Chinese goods still flood the Vietnamese market.

VietNamNet Bridge - The majority of Vietnamese say they don’t want imports from China, but Chinese goods still flood the Vietnamese market.

 


{keywords}


China remains the largest import market for Vietnam in 2015. The General Statistics Office (GSO) estimated that Vietnam’s trade deficit with China reached $32.3 billion in the year, an increase of 12.5 percent, the sharpest increase so far.

“All Chinese farm produce can be found in the Vietnamese market, from fruits to spices. They look very attractive to housewives and they are dirt cheap,” a reader commented.

The reader affirmed that she would not buy Chinese farm produce if she could find Vietnamese products of the same kind with the same price or a little bit more expensive.

The General Statistics Office  stimated that Vietnam’s trade deficit with China reached $32.3 billion in the year, an increase of 12.5 percent, the sharpest increase so far.

“I believe Vietnamese don’t want Chinese products, but buying Chinese is the only choice because some products either are not available in Vietnam, or are uncompetitive with Chinese ones,” she explained.

Ngo Tri Long, a renowned pricing expert, commented that the high trade deficit showed Vietnam’s low production capability.

According to Long, there are three major factors for products to be competitive – price, quality and marketing service. 

Vietnam’s products are less competitive than Chinese in terms of price. In terms of quality, Vietnam’s products are less diverse. Therefore, Chinese products have been squeezing into every corner of the domestic market.

Long noted that China has succeeded with its border trade policy, especially with its infrastructure items in border areas. These make it easy to export products to Vietnam via border gates.

However, the increasingly high trade deficit with China not only shows Vietnam’s weak production capability, but also its bad market management.

“A lot of Chinese farm produce has been sold as Vietnamese products in order to swindle customers,” he explained.

Long, while believing that Vietnam would still have to rely on Chinese imports, thinks it would be able to ease the reliance in the future as the free trade agreements Vietnam has signed with other countries and economic blocs would bring opportunities for Vietnam to approach non-China markets.

Huynh The Du, a lecturer of the Fulbright Economics Teaching Program (FETP), believes that the problem also lies in the exchange rate policy.

“Vietnam has been following an unreasonable exchange rate policy. Government agencies thought a strong currency would benefit the economy. But they were wrong,” he said.

“The currency appreciation not only brought disadvantages to export products, but also harmed domestic production and encouraged the import,” he said.

“Vietnam’s forex policy made Chinese products, which are very cheap, become even cheaper,” he said.

When asked about the future, Du said the high trade deficit would continue if inflation was high and foreign policy rigid.


CafeF

MORE NEWS

10-year-old translator brings scientific knowledge closer to young readers

Children’s history book series, Unstoppable Us, by best-selling author Yuval Noah Harari, has been translated from English into Vietnamese by a 10-year-old translator and published by Omega Plus.

Floods kill five in central region

Heavy downpours and floods in the central region in the past few days claimed the lives of five people as of 5pm on December 6.

VIETNAM BUSINESS NEWS DECEMBER 7

Vietnam spends nearly 190 million USD on importing pork in ten months

Vinfast faces challenges in North America

North America is a promising market, but it is not easy to be successful because there are many rivals there.

Festivities celebrate holiday season in HCM City

HCM City is preparing to launch a series of festivities to celebrate the New Year and Tet holidays (Lunar New Year).

Young driver offers thousands of free rides for poor patients

Dang Xuan Hieu, 24, has for four years given free trips to thousands of poor patients in Ha Giang Province.

Policies take effect in December 2022

Below are among new policies on import and export nomenclature, electricity generation price bracket, and licenses to manufacture tobacco products taking effect from December.

Finance Ministry to raise taxes on land and housing

Taxes on land and housing in Vietnam are far lower than those in other countries, exposing the need for higher tax rates to improve fiscal revenues.

Vietnam, RoK enter new chapter of cooperation

Vietnam and the Republic of Korea have entered a new chapter in their relationship as they upgraded to a comprehensive strategic partnership during President Nguyen Xuan Phuc's official visit to the country.

Free piano class for the elderly in HCM City

A piano class has been run free-of-charge for elderly people in Ho Chi Minh City for the past five years.

Business safety in the digital age

Vietnamese businesses are facing challenges related to cyber security and difficulties adapting to digital transformation.

Tax refunds worth trillions of VND

Tax bodies are working on problems related to VAT refunds in order to help businesses get money to invest in operations, following a dialogue held last week.

Legal loopholes exist for trading forbidden goods

Many students believe that e-cigarettes are not toxic, but are fragrant and stylish.

Quang Ninh to develop night-time economy, awaken tourism

On July 27, 2010, the Prime Minister signed a decision approving Vietnam’s night-time economy development plan.
back_to_top