VN sees trade deficit in first half of December

Vietnam recorded a trade deficit of more than 474 million USD in the first half of December.
Vietnam recorded a trade deficit of more than 474 million USD in the first half of December.

According to the General Department of Customs, the nation's total trade hit approximately 12.1 billion USD during the reviewed period. This amount represents a month-on-month decrease of 9.7 percent but a year-on-year increase of 14 percent. The recent trade deficit lowered the country's surplus, which was acquired in the past 11 months, from 2.88 billion USD to 2.39 billion USD.

Of the total trade amount, exports experienced a monthly drop of 17 percent to reach 5.82 billion USD. The key items affected included telephones and their components, textiles and garments, footwear and wood and wooden goods. Meanwhile, imports also witnessed a modest decrease, reaching 6.29 billion USD.

The department blamed the country's import-export turnover slump, which was experienced in the first half of December, for the drop in export value of the foreign-invested sector.

The latest addition has been noted to bring the country's trade value total to approximately 140.3 billion USD as of mid-December, in which the foreign-invested sector contributed 43 percent or roughly 80 billion USD.

The Ministry of Industry and Trade predicted that Vietnam will likely experience a trade deficit next year after three consecutive years of trade surplus.

The ministry anticipated the export revenues next year to increase by roughly 10 percent to 163 billion USD. However, the import payments are expected to rise, which will result in a trade deficit of 6 billion USD to 8 billion USD or 5 percent of the export revenues.

Deputy Industry and Trade Minister Do Thang Hai attributed the country's trade surplus in previous years to the increase in exports from foreign-invested companies.

However, this will change next year as exports from these companies have gradually declined and are not expected to increase as much as before, he disclosed.

Figures from the ministry showed that the export growth rates of foreign-invested companies have fallen from 31 percent in 2012 and 22 percent in 2013 to 12 percent this year. Rapid and consecutive decreasing rates indicate that the production capacity of foreign-invested companies has gradually declined.-VNA

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