HANOI, May 29 (NNN-VNA) – Vietnam’s total exports in the Jan-May period dwindled 11.6 percent from a year earlier, to 136.17 billion U.S. dollars, while imports dipped 17.9 percent to 126.37 billion dollars, according to data released by the General Statistics Office (GSO), today.
Vietnam recorded a trade surplus of 9.8 billion dollars in the first five months of the year. As sluggish global demand crimped exports, the data showed, Vietnam’s trade surplus with the U.S., its largest export market, plunged 22 percent to 31.2 billion dollars, in the first five months.
Among the biggest export earners for the country, furniture and wooden products posted the largest drop of 28.7 percent to about five billion dollars.
Smartphones slumped 16 percent to 21.2 billion dollars, meanwhile, garments and footwear fell 17.8 percent and 13.3 percent, to 12.3 billion dollars and 8.2 billion dollars, respectively.
Vietnam’s trade deficit with China, its largest trading partner, shrank 16.7 percent to 23.6 billion dollars, the statistics department said.
The import declines were closely connected to a contraction in manufacturing activity, as factories cut their purchases of raw materials and equipment for production.
About 94 percent of Vietnam’s imports are spent on raw materials and equipment for production, which slumped 18.2 percent in the first five months from a year ago, while imports for domestic consumption, accounting for around six percent of total imports, fell 12.7 percent over the period.
Inbound shipments of machinery, equipment, appliances and components, declined 14.6 percent, while imports of computers, electronic products and spare parts fell 13.1 percent in the period.
In an attempt to keep the economic growth at 6.5 percent this year, the country has stepped up efforts, to shore up its export-driven economy, including interest rate cuts, and exempting, reducing, extending, postponing, or deferring some taxes and fees, for businesses and manufacturers.– NNN-VNA
