Vietnam's FDI sector posts $14.8 bn in trade surplus in Jan-Apr 2023

19 May '23

1 min read

Insights

The first four months this year saw Vietnamese businesses with foreign direct investment posting $14.8 billion in trade surplus, despite an overall export decline due to order shortage.
Trade turnover totalled $206.76 billion during the period—down 15.3 per cent year on year.
But overdependence on the FDI sector for exports has led to several problems.

Vietnamese businesses with foreign direct investment (FDI) posted $14.8 billion in trade surplus in the first four months this year, despite an overall export decline due to the shortage of orders.

Trade turnover totalled $206.76 billion during January-April, down 15.3 per cent year on year. The turnover of business with FDI and domestic businesses was $144.02 billion and $62.74 billion respectively, dropping 15.1 per cent and 15.8 per cent, according to the general department of Vietnam customs.

Exports were worth $79.1 billion during the period, down 12.4 per cent YoY. Imports were worth $64.92 billion—down 18.3 per cent.

The continuous rise of trade surplus for the past nearly 10 years is partly attributed to the substantial role of FDI enterprises, a news agency reported. The country’s total foreign trade topped $730 billion by the end of last year.

But overdependence on the FDI sector for exports has its own problems, including serious trade deficit for domestic businesses, focus on quantity instead of quality. The added value in overseas shipments of Vietnam is still lower than that of other countries in the region.

Fibre2Fashion News Desk (DS)

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