Vietnam sees over $6 bn trade surplus in Q1 2023: GSO

Boosting the surplus, April alone contributed about $1.51 billion. Furthermore, 20 Vietnamese exports exceeded $1 billion in commercial revenues. Among these, five commodities registered over $5 billion each, making up 57.4 per cent of the country’s total revenues.

The processing industry led the country’s export sectors, accounting for 88.5 per cent (around $96.1 billion) of export revenues. The US remained the top market for Vietnamese goods, importing around $24.4 billion, followed by the European Union with $9.3 billion and Japan with $367 million.

China emerged as the largest source of imports into Vietnam, with net exports to the country totalling $16.8 billion. South Korea and the Association of Southeast Asian Nations (ASEAN) followed closely, exporting $8.9 billion and $2.3 billion respectively.

A representative from the ministry of industry and trade (MOIT) noted that China, being Vietnam’s largest trade partner and second-largest importer of Vietnamese goods, has great potential for future trade growth. The gradual resumption of trade activities post-COVID-19 in China is seen as a positive sign.

Despite the significant trade surplus, Vietnam experienced a 13.6 per cent year-on-year (YoY) decrease in total trade, amounting to around $210 billion in Q1 2023. This decline has been attributed to both internal and external factors.

Domestically, weak aggregate demand has slowed down production, adversely affecting commercial activities. Externally, rising global fuel prices, slow global economic recovery, and the collapse of several major banks have led to an increase in inflation and a reduction in imports.

The MOIT representative expressed concerns about the capacity of processing industry firms to maintain their current commercial momentum, given the rising costs, falling orders, and challenges with capital absorption, according to Vietnamese media reports.

In April, Vietnam’s total trade stood at $27.54 billion, a 7.3 per cent decrease compared to March. In the first quarter, the Vietnamese-owned sector net imported around $8.04 billion, whereas the sector with foreign investments had a net export of $14.39 billion.

Despite the global tightening of monetary policies leading to a decrease in demand for goods, Vietnam’s total trade with the world in the first four months of 2023 totalled $210.79 billion, resulting in a trade surplus of over $6 billion. The processing and manufacturing sector continued to lead, contributing $96 billion or 88.5 per cent of total exports.

Vietnam’s imports primarily consisted of production materials, accounting for 93.6 per cent of the total import value at $95.64 billion. The US and China remained the biggest importers of Vietnamese goods, with $28.4 billion and $33.3 billion, respectively.

Fibre2Fashion News Desk (NB)