Vietnam likely to yield US$10 trade surplus this year

The government's prompt decisions have helped businesses resume post-pandemic production and increase exports. (Illustrative image).

As of October 21, the country’s trade surplus hit a record high of roughly US$8 billion, and the figure is likely to rise to US$10 billion by the end of the year, Minister Dien said on October 22.

He attributed these positive signs to solutions the Government, ministries, and especially the business community have implemented to stimulate consumption demand and connect product consumption outlets in order to promote trade exchanges.

He recalled that despite facing the negative impact caused by the COVID-19 pandemic last year, Vietnam’s total foreign trade turnover last year hit US$668 billion, making the country one of the 20 largest economies in the world in terms of international trade.

Moving into this year, the vaccine diplomacy strategy proved to be successful as Vietnam garnered large amounts of vaccines from partners, helping it to raise the vaccination coverage nationwide and bring the COVID-19 pandemic under control. The Government gradually eased all travel restrictions and introduced bailout packages in a bid to support business and production.

As of October 20 this year the country’s total foreign trade turnover stood at an estimated US$620 billion, and the figure is likely to climb to US$800 billion by the end of the year, with the trade surplus set to rise to US$10 billion.

This is certainly a huge, outstanding, and spectacular achievement, stressed the Minister.

He went on to say that export businesses no longer rely on key markets but have branched out to new ones. Decreasing demand coupled with high inflation in major markets such as China, Europe, Japan, and the United States have forced local businesses to return to the Eastern European market.

Furthermore, the effective application of e-commerce services has enabled Vietnamese commodities to reach more overseas markets. Currently, the country’s e-commerce sales have fetched approximately US$14 billion, with the figure anticipated to rise to up to US$18 billion for the whole of the year.

However, the Minister admitted that export growth, despite its high rate, is not sustainable due to a lack of balance in the structure of export markets, the structure of exported goods, and the structure of export businesses. He cited statistics indicating that foreign direct investment (FDI) businesses make up 74% of the country’s total export turnover, while the export capacity of State-owned businesses remains weak.

To meet this year’s target, Minister Dien said it is necessary to continue to boost exports, strengthen import management, and promote official export in association with restructuring commodities and building brands.

According to the Minister, other solutions include bringing into full play free trade agreements that Vietnam has signed, effectively promoting the role of the system of trade bureau overseas, and releasing early warning about risks and trade lawsuits.