Dong Nai: Import and export results show signs of trade deficit

Civil servants of Bien Hoa Customs Sub-Department supervise import and export goods. Photo: Vo Van Thiep

Specifically, facing the developments of the Covid-19 pandemic, Dong Nai and southern provinces continue to implement social distancing according to Directive 16/CT-TTg of the Prime Minister, making the circulation process and freight interrupted.

Along with that is the lack of empty containers and high freight rates; many businesses apply the "3 on the spot" model with low capacity; some businesses have temporarily stopped operating, affecting the import and export activities of businesses in Dong Nai.

According to data from the Dong Nai Department of Industry and Trade, the import-export turnover in September 2021 is estimated at US$2,812 million, up 5.4% compared to August and down 3.4% over the same period in 2020.

In which, export turnover was estimated at US$1,367 million, up 6.7% over the previous month and down 18% over the same period last year. Import turnover was estimated at US$1,445 million, up 4.2% and 16.2% respectively over the previous month and the same period last year.

Thus, it is estimated that Dong Nai's trade balance of goods recorded a trade deficit of US$77 million in September 2021.

According to the Dong Nai Department of Industry and Trade, this is the first time that Dong Nai's trade balance of goods has faced a trade deficit after many consecutive years of maintaining a surplus. However, the trade balance of import and export goods in the first nine months of 2020 still maintained a trade surplus of over US$2 billion.

Total import and export turnover in nine months of 2021 was estimated at US$30,596 million, up 28.6% over the same period last year. In which, imports increased by 21.5%, estimated at US$16,299 million, and imports were estimated to increase by 48%, reaching US$14,296 million.

According to the Dong Nai Statistics Department, the growth rate slowed down due to the negative impact of the Covid-19 pandemic on the production and business activities of enterprises, causing several items with a decrease in export turnover compared to the same period last year as textile, garment down 2.53%; shoes of all kinds 8.68%.

Footwear and textiles are two key production and export products of the province, accounting for about 30% of total export turnover. Many businesses had to temporarily suspend operations, such as Changshin Vietnam Co., Ltd. with 42,000 employees; Taekwang Vina Industrial Joint Stock Company with 33,000 employees; Dona Standard Shoes Co., Ltd., with 29,000 employees; Pousung Vietnam Co., Ltd. has about 25,000 employees; Pouchen Vietnam Co., Ltd. 17,000 employees; Hwaseung Vina Co., Ltd. 15,000 employees, causing the export turnover of these two industries to decrease.

Currently, the demand for raw materials for year-end production is rising thanks to economic activities entering a new normal. Some imported goods in nine months increased quite well, such as animal feed and raw materials increased by 11%, chemicals increased by 70%, plastic raw materials increased by 43%, fibers and textile fibers increased by 32.4%, computers, electronic products, and components increased by 51%.

While some industries were operating in moderation, imports increased slightly and decreased, such as fabrics of all kinds increased by 3.51%; raw materials for textile, garment, leather, and shoes decreased by 0.53%; other machinery, equipment, tools, and spare parts decreased by 0.39%.