Vietnam 8-month trade surplus expected to beat 2019’s record

Vietnam reported an estimated trade surplus of US$3.5 billion in August, expanding the trade surplus to a record high of US$11.9 billion in the January – August period and exceeding the record figure of US$11.12 billion in 2019 with four months to go, the General Statistics Office (GSO) has said in a monthly report.

On breaking down, the domestic-invested sector is estimated to post a trade deficit of US$11.2 billion in the eight-month period while foreign-invested firms have recorded a surplus of US$23.1 billion.

The domestic-invested sector continues to be a spotlight in Vietnam trading activities as the sector’s exports are expected to expand 15.3% year-on-year to US$60.8 billion during the period, accounting for 35% of the country's exports. Meanwhile, FDI firms have reaped US$113.31 billion from overseas shipments, down 4.5% and accounting for 65% of the total.

Data: GSO. Chart: Nguyen Tung.

In August, Vietnam has exported goods worth an estimated US$26.5 billion, up 6.5% inter-monthly, mainly due to Samsung boosting exports of its new flagship model Galaxy Note 20, while imports are estimated to increase by 4.1% to US$23 billion.

The complicated progression of the Covid-19 pandemic in Vietnam’s major markets continued to exert negative impacts on the country’s trading activities, noted the GSO.

Overall, Vietnam's trade turnover is likely to have slipped 0.3% year-on-year to reach US$336.32 billion in the January – August period, of which its export value could amount to US$174.11 billion, up 1.6% year-on-year, and imports are estimated at US$162.21 billion, down 2.2%.

Among Vietnam’s key export staples, phones and parts are predicted to earn the largest export turnover during the January-August period at US$31.5 billion, down 5.5% year-on-year and accounting for 18.1% of Vietnam’s total exports.

Data: GSO. Chart: Nguyen Tung.

In addition, electronic products, computers and components have earned an estimated US$27.6 billion, up 24.8% year-on-year; followed by garments (US$19.2 billion and down11.6%); equipment and parts (US$15.1 billion and up 31.9%); footwear (US$10.9 billion and down 8.6%); wood and wooden products (US$7.3 billion and up 9.6%); fishery (US$5.2 billion and down 5.3%); transportation vehicles (US$5.2 billion and down 9.5%), among others.

In the January – August period, the US remained Vietnam's biggest export market, spending US$46.7 billion on Vietnamese goods, up 19% year-on-year, followed by China (US$27 billion, up 13%), and the EU (US$22.9 billion, down 4%).

Meanwhile, China continued to be Vietnam's largest supplier, selling US$49.3 billion worth of goods to Vietnam, up 0.7% year-on-year. 

South Korea claimed the second place by exporting US$28.7 billion worth of goods to Vietnam, down 8.3% year-on-year, followed by ASEAN countries with US$19.4 billion, down 9.2%.