Trade deficit with China grows as imports soar
The value of Chinese imports in the first months of 2021 alone reached $15.42 billion, twice as much as the
The EU - Vietnam Free Trade Agreement, or EVFTA has created the conditions needed to boost bilateral trade between Vietnam and the EU.
Photo: VOV
Export revenue from the EU market reached USD 22.5 billion in the first seven months of 2021, a year-on-year rise of 15.5 percent, reported the Ministry of Industry and Trade.
According to the ministry, Vietnam mostly exported telephones and accessories, computers, electronics, footwear, garment and textile products, seafood, and handbags and wallets to the EU.
Meanwhile, the country imported USD 9.7 billion worth of goods from the EU, a rise of 19.6 percent over the same period in 2020. Major imports were accessories, automobile spare parts, completely built-up cars, and household appliances, VNA cited.
The EU-Vietnam Free Trade Agreement, or EVFTA, entered into force on August 1 last year and has created the conditions needed to boost bilateral trade between Vietnam and the EU.
Total import-export turnover between the two sides in the first seven months of 2021 topped USD 32.2 billion, an increase of USD 4.4 billion compared to the same period of 2020.
The EVFTA plays a vital role in the future of trade relations between Vietnam and the EU. In the first half of this year, trade between the two parties hit USD 27 billion, up 18 percent compared to the same period in 2020 and a significant highlight amid Covid-19.
This figure is expected to rise when the EU - Vietnam Investment Protection Agreement (EVIPA) comes into force after being ratified in member states.
Photo: VNA
The EVFTA is considered one of the most advanced trade deals Vietnam has signed. It will further grow in importance once the Covid-19 vaccination campaign is launched nationwide and the pandemic is brought under control.
Meanwhile, according to SGGP, Vietnam’s total export earnings hit USD 27 billion in July, down 0.8 percent month-on-month and up 8.4 percent year-on-year, reported the General Statistics Office (GSO) on July 29.
Seven-month imports rose by 35.3% annually to reach USD188.03 billion, USD 66.31 billion of which was from the domestic sector, with the remaining sum coming from the foreign-invested sector. Over USD 1 billion was also spent on 31 goods each, equivalent to 87.5% of total imports.
The US remained Vietnam’s largest importer with turnover hitting US 53.6 billion, up 37.4 from the same period last year. It was followed by China with USD 28.7 billion, up 24.2 percent, while the EU stands third.
China represented the country’s largest export market with a value of USD 62.3 billion, up 48.5% annually. This is followed by the Republic of Korea with USD 29.7 billion, up 19.9%, ASEAN at USD 24.7 billion, up 48.2%, and Japan with USD 12.6 billion, up 13.8%.
Vietnam ran a trade deficit of USD 1.7 billion in July, thereby bringing the figure over the seven-month period to USD 2.7 billion, said VOV.
To boost production and exports, the Ministry of Industry and Trade pledged to tap opportunities from free trade deals, step up export promotion activities post-pandemic, as well as continue developing energy, mechanical engineering industries.
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Valerie Mai
