Oil slump costs Vietnam 2.5bln USD in export losses hinh anh 1Falling fuel prices have contributed to a cut in local production costs (Photo: VNS/VNA)

 The country's crude oil export value fell sharply by nearly 2.5 billion USD in January-August 15 due to the slumping global oil price, according to the General Department of Customs.

During the period, the country exported more than 5.7 million metric tonnes of crude oil, fetching more than 2.56 billion USD, much below the level for the same period last year when it earned more than 5.04 billion USD from shipment of 5.9 million metric tonnes.

According to Reuters, US oil prices in the global market traded below 40 USD a barrel, ending 2 percent lower on August 21 on signs of US oversupply and weak Chinese manufacturing, and notching the longest weekly losing streak in almost three decades. US crude on August 21 dipped below the 40 USD threshold for the first time since the 2009 financial crisis.

Brent oil also ended 1.16 USD, or 2.5 percent, lower at 45.46 USD a barrel. It hit a low of 45.07 USD and threatened to break below 45 USD a barrel for the first time since March 2009, Reuters reported.

According to experts, the oil price drop will help boost the country's production and manufacturing sector, and increase GDP significantly.

Deputy Director of the Ministry of Finance's Institute of Economics and Finance Nguyen Duc Do said the domestic production will benefit from the fuel price drop as it contributes to cutting input costs.

Economist Bui Trinh also estimated that a 20 percent fuel price drop will help cut roughly 0.8 percent of input costs in the first stage and another 0.3-0.5 percent in the next stage.

The falling oil prices will also enable the country to keep inflation within control and stabilise the macro-economy.

Minister of Planning and Investment Bui Quang Vinh estimated that if oil price in the domestic market falls by roughly 10 percent, the local consumer price index will drop by roughly 0.55 percent and GDP may increase by 0.91 percent.

Vietnam's inflation in the first eight months of this year rose only 0.83 percent from the same period last year, according to the General Statistics Office.

However, the fuel price drop will cause a negative impact on the country's State budget as the collection from crude oil contributes significantly to it.

According to the Ministry of Planning and Investment, if crude oil price hovers at 40 USD per barrel, the State budget will lost roughly 11.5 trillion VND (510 million USD).-VNA