Vietnam strives to curb trade gap of US$3 billion

The Ministry of Industry and Trade projects export growth by 8-10% to US$265 billion in 2019.

The Ministry of Industry and Trade (MoIT) released the trade target at a meeting, setting its goals for 2019 held in Hanoi on January 17.

The industry and trade sector this year aims to increase industrial production index (IPI) by 9-10% while projecting export growth by 8-10% to US$265 billion. Imports are expected to total US$268 billion, up by 11.7%, thus leading to a trade deficit of estimated US$3 billion.

The sector also looks to raise total retail sales of goods and services by around 12%.

Given this, the MoIT will strive to hasten the implementation of schemes on restructuring industries and trade towards creating high added value products and intensifying their integration into global value chains.

The ministry also plans to further bolster domestic staples’ access to regular and potential markets.

Priority will be given to purchasing machines, equipment and manufacturing inputs that are not available in the domestic market while the import of luxurious items and those on sale in Vietnam will be kept under close watch.

Efforts will be maximized to tap into the advantages of valid free trade agreements (FTAs) as well as to prepare for the effective implementation of new-generation FTAs.

Vice Minister of Industry and Trade Hoang Quoc Vuong highlighted that, the growth of the industry and trade sector has been backed since 2018 as a number of key manufacturing projects made their debut in the year, notably steel projects developed by Taiwan-based Formosa Plastics Group and domestic Hoa Phat Group, and automobile manufacturing and assembly plants of Vingroup, Truong Hai Auto Corporation, and Hyundai Thanh Cong Auto Vietnam JSC.

Another noteworthy development is that two out of 12 projects having incurred huge losses were on the path to recovery and reaped initial profits last year, Vuong added.

Vietnam saw a trade surplus of US$2.52 billion in 2016, at the peak level since 2005, while the figure climbed to US$2.67 billion in 2017.

The country also gained US$7.4 billion in trade surplus in the first 11 months of 2018, reported the General Statistics Office of Vietnam.