Vietnam sees 2014 trade surplus of $1.5 billion on stronger exports

Reading Time: 1 minute

3991OT8XEUGrowth in exports driven by manufacturing could give Vietnam a trade surplus of $1.5 billion this year, far surpassing its forecast of $500 million in July, according to the country’s trade ministry.

An annual surplus would be the third in a row for Vietnam, which posted its first in two decades in 2012, with cellphones and textiles continuing to bolster an economy constrained in the past few years by high levels of bad debt and weak consumer spending.

Vietnam’s exports this year are likely to touch $148 billion, surpassing the annual target of $145.4 billion, and an increase of 12 per cent from 2013, the ministry of industry and trade said on its website on October 2.

Imports for 2014 may rise at a slower pace of 11 per cent to $146.5 billion, the ministry said.

Despite structural weaknesses in its economy and the slow pace of banking reforms, privatisation and regulation, Vietnam remains a draw for multinational firms, including Microsoft and Intel, due to lower wages than China and the prospect of tariff-free exports to the European Union, the US and Japan once a raft of trade deals go through.

The ministry expected exports to grow faster in the fourth quarter, having increased more than 14 per cent to $109.6 billion during January-September from the same period last year. Imports were up 11 per cent at $107.2 billion in that period.

Chemical exports outperformed other sectors, surging 71 per cent in the past nine months, while exports of cellphones from firms like Samsung Electronics, climbed 10 per cent to $17 billion.

Textiles and garments, which include Adidas, H&M and Zara, rose 19 per cent, netting more than $15 billion in the first nine months.

Most economists see a stable outlook for Vietnam this year, with faster manufacturing expansion in September spurring third-quarter economic growth of 6.2 per cent, the quickest since the end of 2010.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid

Growth in exports driven by manufacturing could give Vietnam a trade surplus of $1.5 billion this year, far surpassing its forecast of $500 million in July, according to the country’s trade ministry. An annual surplus would be the third in a row for Vietnam, which posted its first in two decades in 2012, with cellphones and textiles continuing to bolster an economy constrained in the past few years by high levels of bad debt and weak consumer spending. Vietnam’s exports this year are likely to touch $148 billion, surpassing the annual target of $145.4 billion, and an increase of 12...

Reading Time: 1 minute

3991OT8XEUGrowth in exports driven by manufacturing could give Vietnam a trade surplus of $1.5 billion this year, far surpassing its forecast of $500 million in July, according to the country’s trade ministry.

An annual surplus would be the third in a row for Vietnam, which posted its first in two decades in 2012, with cellphones and textiles continuing to bolster an economy constrained in the past few years by high levels of bad debt and weak consumer spending.

Vietnam’s exports this year are likely to touch $148 billion, surpassing the annual target of $145.4 billion, and an increase of 12 per cent from 2013, the ministry of industry and trade said on its website on October 2.

Imports for 2014 may rise at a slower pace of 11 per cent to $146.5 billion, the ministry said.

Despite structural weaknesses in its economy and the slow pace of banking reforms, privatisation and regulation, Vietnam remains a draw for multinational firms, including Microsoft and Intel, due to lower wages than China and the prospect of tariff-free exports to the European Union, the US and Japan once a raft of trade deals go through.

The ministry expected exports to grow faster in the fourth quarter, having increased more than 14 per cent to $109.6 billion during January-September from the same period last year. Imports were up 11 per cent at $107.2 billion in that period.

Chemical exports outperformed other sectors, surging 71 per cent in the past nine months, while exports of cellphones from firms like Samsung Electronics, climbed 10 per cent to $17 billion.

Textiles and garments, which include Adidas, H&M and Zara, rose 19 per cent, netting more than $15 billion in the first nine months.

Most economists see a stable outlook for Vietnam this year, with faster manufacturing expansion in September spurring third-quarter economic growth of 6.2 per cent, the quickest since the end of 2010.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid