Việt Nam returns to trade surplus in September but nine-month deficit persists

Việt Nam returns to trade surplus in September but nine-month deficit persists

Việt Nam mposted a trade surplus of $1.27 billion in September, with total trade of goods reaching $117.69 billion, up 7.3 per cent from August and 42.4 per cent from the same month last year.

Containers loaded at Tân Cảng - Cái Mép International Terminal, HCM City. During January - September, Việt Nam's total trade of goods reached $888.02 billion, up 30.4 per cent over the same period last year. — VNA/VNS Photo Xuân Khu

Việt Nam returned to a goods trade surplus in September after nine consecutive months of deficit, but remained in a US$19.42 billion deficit for the first nine months of this year, the National Statistics Office (NSO) said in its socio-economic report on October 3.

The country posted a trade surplus of $1.27 billion in September, with total trade of goods reaching $117.69 billion, up 7.3 per cent from August and 42.4 per cent from the same month last year.

The September surplus followed a period of sustained trade deficits and offered some improvement in the trade balance, but the NSO said the accumulated deficit remained a matter to watch.

Exports in September reached $59.48 billion, up 8.5 per cent from August and 39.1 per cent from a year earlier. Exports by domestic companies rose 9.9 per cent year-on-year, while those by foreign-invested companies, including crude oil, surged 46.5 per cent.

Imports reached $58.21 billion in September, up 6 per cent from the previous month and 45.8 per cent from a year earlier. Imports by domestic companies increased 22.1 per cent, while those by foreign-invested companies rose 54.6 per cent.

During January - September, Việt Nam's total trade of goods reached $888.02 billion, up 30.4 per cent from the same period last year. Exports rose 24.5 per cent to $434.30 billion, while imports jumped 36.7 per cent to $453.72 billion.

The faster growth in imports has been driven largely by production inputs, the NSO said, citing statistics that in the nine-month period, production materials accounted for 94.1 per cent of total imports, worth $426.92 billion. 

Foreign-invested companies continued to dominate exports, accounting for $350.41 billion, or 80.7 per cent of the nine-month total, up 29.4 per cent year-on-year. Domestic businesses exported $83.89 billion, up 7.5 per cent.

The NSO's report pointed out that 35 export products generated more than $1 billion each, together accounting for 94.3 per cent of total exports. Of them, seven products exceeded $10 billion and accounted for 70.7 per cent.

The US remained Việt Nam's largest export market, with a value of $140 billion in the nine-month period. Việt Nam ran a $122.62 billion trade surplus with the US, up 23.8 per cent from a year earlier.

China remained Việt Nam's largest import market, with a value of $187.34 billion and a trade deficit of $121.48 billion, up 43 per cent over the same period last year.  

Domestic companies recorded a $34.28 billion trade deficit in the first nine months, while the foreign-invested sector, including crude oil, posted a surplus of $14.86 billion. 

The NSO said the trade deficit must continue to be watched, particularly the ability to turn imported raw materials and components into higher-value exports. It has also highlighted the need to strengthen supporting industries, raise domestic localisation rates and improve domestic production capacity to make the trade balance more sustainable. 

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