return icon Vietnamnet.vn

What does a $9 billion trade surplus mean for Vietnam?

The $9 billion trade surplus helps improve the foreign currency supply and consolidate the current account, but the amount is not entirely praiseworthy in the context of trade war.

According to GDC, in the first 10 months of 2019, total import and export turnover reached $429 billion, an increase of 8 percent compared with the same period last year. Of this, the export value hit $219 billion, up by 8.3 percent, while the import turnover was $210 billion, up by 7.7 percent.

 

{keywords}



With the high export growth rate, the trade surplus reached $9 billion, the highest level ever.

Le Xuan Sang, deputy head of the Vietnam Economics Institute, said the trade surplus, in the short term, will help stabilize the macro economy, improve the foreign currency supply and consolidate the current balance. However, in the long term, this could be a big problem in the context of trade tensions between China and the US.

Explaining the high trade surplus, Tran Toan Thang from the Centre for Socio-Economic Information and Forecast (NCIF) said the sharp increase in the exports to the US was the major reason behind this.

According to GDC, in the first 10 months of 2019, total import and export turnover reached $429 billion, an increase of 8 percent compared with the same period last year. Of this, the export value hit $219 billion, up by 8.3 percent, while the import turnover was $210 billion, up by 7.7 percent.

The total export turnover to the US market in the first 10 months of the year reached $49.9 billion, an increase of 26.6 percent over the same period last year, or four times higher than average export value increase of the whole country, according to the General Statistics Office (GSO).

“Enterprises in short term can take full advantage of the opportunities to boost exports to the US market. However, this could bring risks, as Vietnam may be listed as a currency manipulator,” Thang said.

In a report released last May, the US put Vietnam into the watchlist for currency manipulators as the country met two criteria for consideration 1/ it had trade surplus in the trade with the US and 2/ it had surplus in current balance.

However, the US Treasury Department did not list Vietnam as the currency manipulator.

“In the current conditions, when the Trump’s administration pays high attention to the countries which have high trade surplus with the US, the $9 billion trade surplus seems not to be good news for Vietnam-US trade relation,s” the expert said.

The major export items to the US in the first 10 months of the year included electric wire and cables (up by 252 percent), material plastics (148 percent), non-wood interior furnishings (140 percent), computers, electronics and electronic parts (100 percent), and bamboo-made products (98 percent), according to GDC.

The import/export picture in the first 10 months of the year reflected the strong rise of the private sector. GSO’s figures showed 16.2 percent in exports from the domestic economic sector, which was much higher than the 3.9 percent growth rate of the foreign invested economic sector.

Kim Chi 

 

China investment in Vietnam surges amid trade war

China investment in Vietnam surges amid trade war

FDI commitments in the January – November period totaled US$31.8 billion, up 3.1% year-on-year.

China makes up nearly 40% of Vietnam’s steel imports despite tighter trade measures

China makes up nearly 40% of Vietnam’s steel imports despite tighter trade measures

The neighboring country remained Vietnam’s leading supplier of steel over the last three years, with the quantity and value growing at two-digit growth rates annually.

MORE NEWS

27 senior Party members disciplined in H1/2022

The Party Central Executive Committee, the Politburo, the Secretariat, and the Central Commission for Inspection disciplined 27 officials managed by the Politburo and the Secretariat in the first six months of 2022, 20 cases up year on year.

Hanoi to inspect fire prevention at all karaoke parlors

Half a month after the karaoke parlor fire in Cau Giay District, the Hanoi People's Committee has asked districts to inspect all karaoke parlors and bars and handle violations.

Vietnam needs extra US$368 billion to achieve net zero emissions

As the energy industry has a crucial role in achieving net zero emissions by 2050, it requires a structural transition toward green growth. Therefore, Vietnam needs assistance from developed countries regarding both financial and technical issues.

Labor Minister proposes harsh punishment for child offenders

Minister of Labor, War Invalids and Social Affairs Dao Ngoc Dung signed an official letter requesting to have harsh punishment for child offenders and strengthening measures to prevent violence against children.

Pu Sam Cap Cave: the hidden charm of Lai Chau

Pu Sam Cap Cave in Pu Sam Cap Commune, Sin Ho District, in the northwestern province of Lai Chau, is known for its wild, beautiful and mysterious beauty.

Hanoi’s three largest parks are seriously degraded

Many public works in the parks of Thu Le, Bach Thao, and Thong Nhat in Hanoi are in disrepair, affecting urban beauty and public experiences.

Why are thousands of public employees taking private-sector jobs?

Many public employees have recently quit their jobs and taken a job in the private sector. This indicates that the public sector is not attractive and that many problems need to be addressed.

Kon Tum Province records 300 earthquakes over a year

The Central Highland province of Kon Tum has recorded more than 300 earthquakes since April 2021, according to the provincial administration.

Highly-infectious BA.2.74 Omicron sub-variant detected in Vietnam

Vietnam has detected a number of new, highly-contagious Omicron sub-variants, including BA.2.74, said the General Department of Preventive Medicine on August 17.

Relaxing visa policy to attract more foreign tourists to Vietnam: insiders

Vietnam’s visa policy should be more open to lure international tourists, insiders have said.

Vietnam Airlines resumes, increases frequency of several flights in September

The national flag carrier Vietnam Airlines will resume flights connecting the central city of Da Nang with Malaysia’s Kuala Lumpur and Thailand’s Bangkok from September 1 and September 15, respectively, the carrier has announced.

Da Lat listed among world’s best places for binge-worthy dating

Booking.com has named Vietnam's Da Lat city among the world's six places for the summer’s binge-worthy dating shows.

Quang Ninh refutes allegations of sea encroachment in Ha Long Bay

The authorities of Quang Ninh province has refuted information that it has allowed a project to conduct sea encroachment and subdivide land plots for sale, which seriously undermined the conservation of the UNESCO-recognised Ha Long Bay.

VN extends time of anti-dumping investigation on tables, chairs from Malaysia, China

The Ministry of Industry and Trade (MoIT) has decided to extend time limit of investigation on applying anti-dumping measures on table and chair products originating from Malaysia and China by six months.

EVFTA and UKVFTA: the same sweet spot

With many similarities, the UK- Vietnam Free Trade Agreement (UKVFTA) could be called a direct copy of the EU- Vietnam Free Trade Agreement (EVFTA).
back_to_top