Despite trade deficit in the first half of 2021, experts still predicted that Vietnam will soon resume balance in the trade of goods thanks to the strong growth in production.

Illustrative image (Source: VNA)

Despite trade deficit in the first half of 2021, experts still predicted that Vietnam will soon resume balance in the trade of goods thanks to the strong growth in production.

According to the General Statistics Office, in the first six months of this year, Vietnam suffered trade deficit of 1.47 billion USD.

Meanwhile, General Department of Vietnam Customs reported that as of July 15, Vietnam’s import-export revenue reached over 345 billion USD. With imports of over 174 billion USD as compared to 171 billion USD in exports, the country had seen trade deficit of over 3 billion USD.

Notably, 31 types of goods recording import revenue of over 1 billion USD, while 25 groups of goods enjoying exports of more than 1 billion USD.

However, Deputy Minister of Industry and Trade Do Thang Hai held that the majority of spending was on materials, signaling the rapid recovery of domestic production. Many production facilities have received orders to keep them busy until the end of the third quarter or the whole year, causing an increase in imports of materials, he said.

Besides, economists asserted that a number of businesses have increased imports of materials for reserve to take advantages of low prices in current period, so that they will have enough materials despite COVID-19 impacts.

With strong imports of materials for production and the rapid recovery of the global market, Vietnam will record growth in exports in the rest of the year to balance trade soon, they said.

Deputy Director of the Import-Export Department under the Ministry of Industry and Trade Tran Thanh Hai, export activities are normally busier in the last months of the year. However, in order to complete the target of 4-5 percent growth in export revenue in 2021 and trade surplus for the whole year, it is necessary to make stronger economic breakthroughs.

He advised businesses to make full use of advantages from signed free trade agreements (FTA) to increase exports, especially of strong products such as farm produce, garment and textile. He pledged that the ministry will support them in seeking markets and partners, removing administrative obstacles and promoting e-commerce.

Dr. Nguyen Thuong Lang from the National Economics University held that along with grasping opportunities from FTAs, Vietnamese firms should continue to improve their product quality.

General Director of May 10 Garment Company Than Duc Viet underlined the need for businesses to adapt to the ‘new normal’ situation to rise.

With joint efforts of authorised agencies and businesses, experts are optimistic about the balance of national trade in the rest of the year.