AsemconnectVietnam - Vietnam's exports in the first seven months of this year fell 10.6% from a year earlier to $194.73 billion, government data showed on Saturday, with activity dragged down by a sluggish global economy and weak domestic demand.

Industrial output for January to July fell 0.7% from the same period last year in the Southeast Asian industrial powerhouse, while average consumer prices rose 3.12%, the General Statistics Office said in a report. Core inflation rose 4.65% in the first seven months, it said. Vietnam targets inflation below 4.5% this year.The data underlined a slowdown in economic growth for the region's manufacturing hub.Imports for the period fell 17.1% to $179.5 billion, resulting in a trade surplus of $15.23 billion, the statistics office said.
Exports of smartphones, Vietnam's largest export earner, fell 18.3% in the January-July period to $27.8 billion.
July exports fell 3.5%, while imports were down 9.9%.
Foreign trade down 13.9 pct in 7 months
Vietnam posted an estimated foreign trade value of 374.23 billion U.S. dollars in the first seven months of this year, down 13.9 percent year on year, with a trade surplus of 15.23 billion dollars, local media reported on Tuesday, citing the General Statistics Office (GSO).
Specifically, the export revenue stood at 194.73 billion dollars, down 10.6 percent, while the import revenue decreased 17.1 percent year on year to 179.5 billion dollars, the local newspaper Vietnam News reported.The United States remained Vietnam's biggest importer with turnovers of 52.4 billion dollars, and China was its largest exporter with turnovers of 58.6 billion dollars over the period, according to the office.Many key export products of Vietnam are facing difficulties because of the sharp decrease in global market demand, the newspaper said, citing the GSO.
A large trade surplus that the economy continued to post has raised concerns that industrial production and exports will continue to face difficulties in the coming time, the newspaper said.
As Vietnam's economy depends heavily on imported raw materials, the decrease in imports shows that enterprises are still short of orders, so there is no need to import input materials, it reported.
To further improve import and export efficiency, the Ministry of Industry and Trade would renew and promote trade promotion activities targeting new markets and potential ones including India, Africa, the Middle East, Latin America and Eastern Europe, the newspaper reported.
July inflation likely eased below 5%
INFLATION likely further eased to below the 5% level in July, as base effects and lower power rates may have tempered higher food costs and pump prices, a BusinessWorld poll showed.
A BusinessWorld poll of 17 analysts yielded a median estimate of 4.9% for July inflation, which would be slower than the 5.4% print seen in June and the 6.4% print in July 2022.
If realized, July would mark the sixth straight month of slowing inflation and the first time that inflation fell below 5% since 4.9% in April 2022.
July inflation would also likely exceed the central bank’s annual 2-4% target range for the 16th straight month.
The Bangko Sentral ng Pilipinas (BSP) will release its inflation forecast today (July 31).
The Philippine Statistics Authority is scheduled to release the latest consumer price index data on Aug. 4 (Friday).
According to analysts, inflation likely decelerated further in July as lower utility rates offset the rising prices of food and oil.
CPI up 3.12 pct in 7 months
Vietnam's consumer price index (CPI) in the first seven months of this year went up by 3.12 percent year on year, as the country's core inflation rose by 4.65 percent, according to the latest statistics of the country's General Statistics Office.
In the seven-month period, items posting the most significant price hikes include education with a 7.61 percent rise; housing and construction materials with a 6.58 percent increase; and restaurant and catering services with a 3.92 percent increase, according to the office.
Compared to June, the index grew by 0.45 percent in July, contributed by price hikes for 10 out of the 11 items in the calculation basket. The increase was driven by factors such as rising prices of food and retail electricity triggered by increasing demand during high tourism season, according to the office.
In 2022, Vietnam saw the CPI rise by 3.15 percent compared to the previous year, meeting the below-4 percent target set by its top legislature.
The country has targeted to keep inflation at 4.5 percent in 2023, according to a report by Vietnam News Agency.
Manufacturing sector shows signs of stabilization
The Vietnamese manufacturing sector remained in contraction territory but showed some signs of stabilization, according to a report released by S&P Global Market Intelligence on Tuesday.
Softer declines were seen in output, new orders and employment, while business confidence picked up in the opening month of the third quarter of the year, the report said.
The S&P Global Vietnam manufacturing Purchasing Managers' Index (PMI) rose to 48.7 in July from 46.2 in June, signaling a fifth successive monthly deterioration in operating conditions, albeit one that was only modest and the weakest in this sequence.
"There were signs that demand may be stabilizing as new orders fell at the softest pace in five months. Firms will be hoping that this may feed through to renewed growth of orders in the months ahead," said Andrew Harker, economics director at S&P Global Market Intelligence.
New orders decreased only marginally in July amid some signs of demand stabilizing. Manufacturers signaled that demand remained subdued overall, particularly in export markets.
Highlighting the particular weakness internationally, the report said, new export orders fell much more quickly than total new business, adding that some firms pointed to declines in new orders from European customers.
T.Huong
Source: Vitic/Reuters