Vietnam posts 3.71 billion USD in trade deficit in eight months

Workers make garment for export. (Photo: VNA)

Vietnam posted a trade deficit of 3.71 billion USD in the first eight months of 2021 as the country's imports rose 33.8 percent year on year to 216.26 billion USD while exports raked in 212.55 billion USD, up 21.5 percent, the General Statistics Office (GSO) announced on August 29.

The country enjoyed a trade surplus of 13.69 billion USD during the same period last year.

From January to August, the domestic sector also reported a trade deficit of 20.36 billion USD while the foreign-invested sector (including crude oil) gained a trade surplus of 16.65 billion USD.

Thirty-three items recorded import turnover of more than 1 billion USD each and together they represented 88.7 percent of the total. Input materials accounted for the largest share of the total imports, or 204 billion USD, up 34 percent year on year.

China remained Vietnam’s biggest source of imports, shipping 72.5 billion USD worth of goods to the Southeast Asian country, up 47.1 percent compared to a year earlier. It was followed by the Republic of Korea with 34.6 billion USD, up 20.5 percent; and ASEAN, 28.2 billion USD and 47.4 percent.

Vietnam's export turnover in the first eight months of 2021 rose by 21.5 percent year on year to 212.55 billion USD, despite a decline of 5.4 percent in August.

The US remained the biggest export market of Vietnam from January-August, buying 62 billion USD of Vietnamese goods, a year-on-year rise of 32.5 percent.

China came second with 32.7 billion USD, up 19.8 percent. The EU and ASEAN followed with 26 billion USD and 18.4 billion USD, increasing by 14.5 percent and 23.3 percent, respectively.

To boost overseas shipments, the Ministry of Industry and Trade said it plans to utilise opportunities from Free Trade Agreements which Vietnam is a signatory to make inroads into new markets and prioritise trade promotions at those recovering from the COVID-19 pandemic.

Minister of Industry and Trade Nguyen Hong Dien has sent an official letter to his Chinese counterpart Wang Wentao and authority of Yunnan province, asking them to facilitate customs clearance of Vietnamese agricultural exports at border gates Vietnam share with the Chinese province and guaranteeing the highest COVID-19 preventive measures are in place to prevent new outbreaks in the border areas./.