Vietnam’s biggest trade deficit is no longer with China but S.Korea

Seafood products are processed at Ngo Quyen Seafood Processing Joint Stock Company in Kien Giang Province for exporting to Japan, South Korea, Australia and the Europe. South Korea for the first time became Viet Nam’s second-largest trade partner in the first half of 2017. – VNA/VNS Photo Manh Linh South Korea has surpassed the US, the European Union and ASEAN for the first time to become Viet Nam’s second-largest trade partner, after China. According to the General Department of Customs, in the first half of this year, trade value between Viet Nam and South Korea reached $29.12 billion, accounting for 14.7 per cent of total national trade value, of which export value from Viet Nam to South Korea stood at $6.57 billion while import value from South Korea to Viet Nam was $22.56 billion. That import value with strong growth at 51.2 per cent year-on-year made Viet Nam’s trade deficit with South Korea increase to $15.99 billion, higher than its trade deficit with China at $13.72 billion. The Ministry of Planning and Investment said these figures showed that Viet Nam had promoted imports from South Korea and that country, therefore, became the second largest goods supplier of Viet Nam, after China. Viet Nam mainly imported machines and equipment from South Korea for South Korean investors’ factories to produce export goods in Viet Nam. Nguyen Duc Thanh, director of the Viet Nam Institute for Economic and Policy Research, said this development and current…... [read more]

South Korea has surpassed the US, the European Union and ASEAN for the first time to become Viet Nam’s second-largest trade partner, after China. Seafood products are processed at Ngô Quyền Seafood Processing Joint Stock Company in Kiên Giang Province for exporting to Japan, South Korea, Australia and the Europe. South Korea for the first time became Việt Nam’s second-largest trade partner in the first half of 2017. According to the General Department of Customs, in the first half of this year, trade value between Việt Nam and South Korea reached $29.12 billion, accounting for 14.7 per cent of total national trade value, of which export value from Việt Nam to South Korea stood at $6.57 billion while import value from South Korea to Việt Nam was $22.56 billion. That import value with strong growth at 51.2 per cent year-on-year made Việt Nam’s trade deficit with South Korea increase to $15.99 billion, higher than its trade deficit with China at $13.72 billion. The Ministry of Planning and Investment said these figures showed that Việt Nam had promoted imports from South Korea and that country, therefore, became the second largest goods supplier of Việt Nam, after China. Việt Nam mainly imported machines and equipment from South Korea for South Korean investors’ factories to produce export goods in Việt Nam. Nguyễn Đức Thành, director of the Việt Nam Institute for Economic and Policy Research, said this development and current structure of import and export goods reflected the trend of dependence on trade…... [read more]

Some experts have raised concerns over the Republic of Korea (ROK) surpassing China in trade deficit, to become Vietnam’s biggest import market, however, others claimed these worries unfounded and considered it normal as Vietnam is integrating into the world economy. Origins of trade deficit towards the ROK Since April 2017, the ROK has taken over China to become Vietnam’s biggest import market with US$9.3 billion of trade deficit for the first four months of 2017, slightly larger than China in this period.  For the first half of 2017, Vietnam’s trade deficit towards the ROK totalled US$16 billion, while it was US$14.1 billion towards China. Many think that the leading position of the ROK derives from the huge import volumes of Samsung and LG manufacturing facilities in Vietnam. In a quarterly meeting, a representative of the Ministry of Industry and Trade (MoIT) confirmed that Vietnam’s huge trade deficit towards the ROK was related to big South Korean enterprises in Vietnam, such as Samsung and LG. “Samsung and LG’s local factories have imported a large number of machinery, equipment, and materials for their manufacturing activities, leading to the growth of Vietnam’s trade deficit towards South Korea,” the representative said. Vietnam has been importing from the ROK for a long time, but the import volume has significantly increased since 2008, when Samsung made its first large-scale investment in the country, which resulted in an investment wave from the ROK. Currently, Samsung has invested more than US$17 billion in Vietnam and LG over US$5…... [read more]

Origins of trade deficit towards the ROK Since April 2017, the ROK has taken over China to become Vietnam’s biggest import market with US$9.3 billion of trade deficit for the first four months of 2017, slightly larger than China in this period.  For the first half of 2017, Vietnam’s trade deficit towards the ROK totalled US$16 billion, while it was US$14.1 billion towards China. Many think that the leading position of the ROK derives from the huge import volumes of Samsung and LG manufacturing facilities in Vietnam. In a quarterly meeting, a representative of the Ministry of Industry and Trade (MoIT) confirmed that Vietnam’s huge trade deficit towards the ROK was related to big South Korean enterprises in Vietnam, such as Samsung and LG. “Samsung and LG’s local factories have imported a large number of machinery, equipment, and materials for their manufacturing activities, leading to the growth of Vietnam’s trade deficit towards South Korea,” the representative said. Vietnam has been importing from the ROK for a long time, but the import volume has significantly increased since 2008, when Samsung made its first large-scale investment in the country, which resulted in an investment wave from the ROK. Currently, Samsung has invested more than US$17 billion in Vietnam and LG over US$5 billion. From early 2017, Samsung Display Vietnam and LG Display Vietnam’s expansion projects have raised the number of imports from the ROK. In addition, according to MoIT, as the…... [read more]

Some experts have raised concerns over South Korea surpassing China in trade deficit, to become Vietnam’s biggest import market, however, others claimed these worries unfounded and considered it normal as Vietnam is integrating into the world economy. Workers in Doosan Heavy Industries Vietnam (Doosan Vina), a South Korean-invested enterprise in Vietnam (illustration) RELATED CONTENTS: Asian investors control M&A activities in Vietnam Korea scouts for investment opportunities in Can Tho Korean company plans VN aircraft engine parts factory South Korean musical to be staged in Da Nang South Korean IBCT to assist Vietnamese government agencies to develop web teleconferencing Windfall of South Korean high ballers Ha Nam to boost co-operation with South Korea Economists warn of growing trade deficit towards South Korea Origins of trade deficit towards South Korea Since April 2017, South Korea has taken over China to become Vietnam’s biggest import market with $9.3 billion of trade deficit for the first four months of 2017, slightly larger than China in this period. For the first half of 2017, Vietnam’s trade deficit towards South Korea totalled $16 billion, while it was $14.1 billion towards China. Many think that the leading position of South Korea derives from the huge import volumes of Samsung…... [read more]

The Ministry of Planning and Investment is targeting an economic growth rate of 6.4% to 6.8% for Vietnam in 2018, according to a document sent to ministries and local authorities with guidelines to develop the socio-economic plan for 2018. The ministry said that the economic growth in 2018 would continue to improve, fuelled by increases in manufacturing, construction, trade, banking and tourism sectors. The global economic and trade growths were also expected to be higher in 2018 than 2017, creating favourable conditions that would boost the economic growth, especially exports, the ministry said. In addition to this, the improving business environment, rapid international economic integration, increasing foreign direct investment and private investment, coupled with the Government’s determination to remove difficulties for firms will support production and trade, it said. The ministry said that the agriculture, forestry and fishery sectors were anticipated to have good prospects with increasing prices in the global market. Accordingly, the ministry has planned the gross domestic product (GDP) to grow at 6.4% to 6.8% in 2018, total export revenue to increase by 9% to 10%, trade deficit ratio to be below 3% of the total export revenue and the total investments for social development to be at 33.5% to 35% of the GDP. Vietnamese economy grew at 5.73% in the first half of this year. To fulfil the growth rate target set at 6.7% for the full year, the country must achieve 7.42% growth rate in the second half, which is considered to be an ambitious…... [read more]

The ministry said that the economic growth in 2018 would continue to improve, fuelled by increases in manufacturing, construction, trade, banking and tourism sectors. The global economic and trade growths were also expected to be higher in 2018 than 2017, creating favourable conditions that would boost the economic growth, especially exports, the ministry said. In addition to this, the improving business environment, rapid international economic integration, increasing foreign direct investment and private investment, coupled with the Government’s determination to remove difficulties for firms will support production and trade, it said. The ministry said that the agriculture, forestry and fishery sectors were anticipated to have good prospects with increasing prices in the global market. Accordingly, the ministry has planned the gross domestic product (GDP) to grow at 6.4% to 6.8% in 2018, total export revenue to increase by 9% to 10%, trade deficit ratio to be below 3% of the total export revenue and the total investments for social development to be at 33.5% to 35% of the GDP. Vietnamese economy grew at 5.73% in the first half of this year. To fulfil the growth rate target set at 6.7% for the full year, the country must achieve 7.42% growth rate in the second half, which is considered to be an ambitious goal. Forecasts HSBC in a report released recently lowered its GDP forecast for Vietnam to 6% this year, down from its previous forecast of 6.4%. This was largely due to…... [read more]

The Ministry of Planning and Investment is targeting an economic growth rate of 6.4 per cent to 6.8 per cent in 2018. - Photo canhtranhquocgia.vn The Ministry of Planning and Investment is targeting an economic growth rate of 6.4 per cent to 6.8 per cent for Viet Nam in 2018, according to a document sent to ministries and local authorities with guidelines to develop the socio-economic plan for 2018. The ministry said that the economic growth in 2018 would continue to improve, fuelled by increases in manufacturing, construction, trade, banking and tourism sectors. The global economic and trade growths were also expected to be higher in 2018 than 2017, creating favourable conditions that would boost the economic growth, especially exports, the ministry said. In addition to this, the improving business environment, rapid international economic integration, increasing foreign direct investment and private investment, coupled with the Government’s determination to remove difficulties for firms will support production and trade, it said. The ministry said that the agriculture, forestry and fishery sectors were anticipated to have good prospects with increasing prices in the global market. Accordingly, the ministry has planned the gross domestic product (GDP) to grow at 6.4 per cent to 6.8 per cent in 2018, total export revenue to increase by 9 per cent to 10 per cent, trade deficit ratio to be below 3 per cent of the total export revenue and the total investments for social development to be at…... [read more]

The global economic recovery is on firmer footing as improving growth in China, Europe and Japan offset downward revisions for the United States and Britain, the International Monetary Fund said Sunday. However, wage growth remains sluggish which risks increasing tensions that have pushed some countries toward more anti-global policies, while efforts to erode financial regulations put in place since the 2008 crisis could erode stability, the IMF warned. "The recovery in global growth that we projected in April is on a firmer footing; there is now no question mark over the world economy's gain in momentum," IMF chief economist Maurice Obstfeld said. Presenting the latest update of the World Economic Outlook (WEO), he said "recent data point to the broadest synchronized upswing the world economy has experienced in the last decade." The fund still expects the global economy will grow by 3.5 percent in 2017 and 3.6 percent in 2018, the same as in the April WEO. However, the unchanged forecast masks some significant revisions, including in the United States where the IMF downgraded its growth estimate last month after judging that spending plans promised by President Donald Trump that had been expected to provide a boost to the economy were stuck in limbo. The U.S. estimate was cut to 2.1 percent for this year and next, down 0.2 points and 0.4 points, respectively, from the more optimistic forecast in the last report. The outlook for the British economy also was revised down by 0.3 points to 1.7 percent…... [read more]

According to the set plan, in 2008, total export turnover of goods is expected to reach US$59.2 billion, up 22 percent compared to last year’s figure. The processing industrial group continues to post high growth with estimated export turnover reaching US$28.2 billion, up 30.8 percent against the previous year. Mr Pham The Dung, head of the Import-Export Department under the Ministry of Industry and Trade (MoIT) said that there have been significant changes in export activities this year, especially in the mineral group. For example, crude oil has always accounted for over 20 percent in the previous years, but is it now likely to drop to around 16 percent this year. The second group (including agro-forestry and aquatic products) previously made up around 20 percent in the previous years, but is expected to decline to between 17-18 percent this year. The industrial and processing industrial groups is set to increase to 67-68 percent compared to last year’s figure of 60 percent. In 2008, the export growth will mostly depend on the growth of industrial and processing industrial groups. Mr Dung said, in January, the country’s export turnover of goods increased by 19.7 percent, which was lower than the previous years’ figures. Therefore, to achieve a growth rate of 22 percent in 2008, there should be continuous growth over the following months. The MoIT devised an export project with drastic measures to boost exports, increase the value of exporting goods by investing in the processing stage and strengthening the production and…... [read more]




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