Vietnam remains sanguine about prospects for trade in second halfMonday, July 8,2019
AsemconnectVietnam - Domestic businesses should stay alert and be proactive in finding new advantages while improving their competitiveness in order to seize opportunities to boost exports in the remaining months of the year amid the escalating US-China trade tensions, according to economists.
According to statistics released by the General Statistics Office (GSO), the country’s total import-export turnover during the five-month period increased by 8.5 per cent to US$202 billion in comparison to the same period last year. Of which, the total export value reached US$100.7 billion, up 6.7 per cent, while import turnover hit US$101.3 billion, a rise of 10.3 per cent.
Export growth at lowest levels for three years
The export growth of telephones and components, which account for 20 per cent of total export turnover, saw a sharp decline while only a few sectors experienced positive growth such as garments and textiles, wood and computers, and electronics components.
Some of the key imports that enjoyed high growth were automobiles, fruit and vegetables, cameras, and movie cameras.
Thailand and China have emerged as the two major markets which supply fruit and vegetables to the country while the nation’s own fruit and vegetables have faced a number of difficulties in seeking outlets.
According to data and classification of imports by the International Trade Centre, the nation spent nearly US$800 million purchasing machines from China in order to serve solar power plant projects during the first three months of the year.
Although the trade balance witnessed a change from a surplus to deficit in the first half of the year, experts remain optimistic about the trade balance over the course of the second half of the year and hope to see a clear shift by the end of the third quarter of the year.
Regarding the question on how Vietnam can benefit from the escalating US-China trade war, Can Van Luc, chief economist of the Bank for Investment and Development of Vietnam (BIDV), said that several of the nation’s sectors will benefit from the ongoing tensions, most notably industries such as garments and textiles, footwear, seafood, farm produce, wood and electronic products, and telephone and components.
The escalating tensions in the US-China trade war will therefore make a negative impact on the global economic growth and trade, leading to an overall decrease in demand, which will in turn have an adverse effect on the nation’s import-export activities.
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