Strong export growth and a positive trade balance benefit Vietnam’s trade surplus
After the impact of the Covid-19 pandemic, Vietnam’s economy had a strong recovery. Strong export growth is a prime example of this recovery. Since then, Vietnam’s trade balance has tilted towards trade surplus. This is an extremely favorable condition for foreign businesses that want to import goods from Vietnam. Let’s look at these growth numbers with Vncomex.
Strong export growth – general overview of import and export situation
Gross domestic product (GDP) in the second quarter of 2022 was estimated to increase by 7.72% over the same period last year, higher than the growth rate of the second quarter of the years in the period 2011-2021[2]. In the first 6 months, GDP increased by 6.42%, higher than the growth rate of 2.04% in the first 6 months of 2020 and the growth rate of 5.74% in the first 6 months of 2021 but lower than the growth rate of 7.28 % and 6.98% of the same period in 2018 and 2019.
In June 2022, exports grew faster than imports. With this result, the trade balance is in favor of trade surplus of 276 million USD. In the first 6 months of 2022, the trade surplus is 710 million USD…
The data released by the General Statistics Office shows that, in June 2022, the total import and export turnover of goods was estimated at 65.02 billion USD, up 2.3% over the previous month and up 18.1 billion USD. % compared to the same period last year.
In general, in the first 6 months of 2022, the total import and export turnover of goods reached 371.17 billion USD, up 16.4% over the same period last year, of which exports increased by 17.3%; imports increased by 15.5%. The trade balance in goods in the first 6 months of the year was estimated to have a trade surplus of 710 million USD.
Details of strong export growth
Specifically, in terms of strong export growth, in June 2022, it was estimated at 32.65 billion USD, up 5.6% over the previous month. In general, in the second quarter of 2022, export turnover was estimated at US$ 96.8 billion, up 21% over the same period last year and up 8.7% compared to the first quarter of 2022.
Accumulated from the beginning of the year to the end of June 2022, the total export turnover of goods is estimated at 185.94 billion USD, up 17.3% over the same period last year. In which, the domestic economic sector reached 49.26 billion USD, up 20%, accounting for 26.5% of total export turnover; FDI sector (including crude oil) reached 136.68 billion USD, up 16.3%, accounting for 73.5%.
In the first 6 months of 2022, there are 28 items with export turnover of over 1 billion USD, accounting for 90.6% of total export turnover (there are 5 export items with over 10 billion USD, accounting for 57.8%).
Regarding the structure of export products in the first 6 months of 2022, fuel and mineral products accounted for 1.4%, up 0.3 percentage points over the same period last year; processed industrial products accounted for 88.7%, down 0.2 percentage points; agricultural and forestry products accounted for 6.8%, down 0.6 percentage points; aquatic products accounted for 3.1%, up 0.5 percentage points.
Decline in imports alongside strong export growth
From the opposite direction, the import turnover of goods in June 2022 was estimated at 32.37 billion USD, down 0.8% compared to the previous month. In general, in the second quarter of 2022, import turnover was estimated at 97.6 billion USD, up 15.7% over the same period last year and up 11.3% compared to the first quarter of 2022.
Accumulated from the beginning of the year to the end of June 2022, the total import turnover of goods was estimated at $185.23 billion, up 15.5% over the same period last year, of which the domestic economic sector reached 65. 23 billion USD, up 15.2%; FDI sector reached 120 billion USD, up 15.6%.
In the first 6 months of 2022, there are 30 imported items worth over 1 billion USD, accounting for 87% of total import turnover.
Regarding the structure of imported goods in the first six months of 2022, capital goods accounted for 94%, up 0.2 percentage points over the same period last year, of which machinery, equipment, tools, and spare parts accounted for 94%. 44%, down 0.9 percentage points; raw materials, fuel, and materials accounted for 50%, up 1.1 percentage points. The group of consumer products accounted for 6%, down 0.2 percentage points.
Vietnam’s commodity export and import markets
Regarding the export and import markets of goods in the first six months of 2022, the United States is the largest export market of Vietnam with an estimated turnover of 55.9 billion USD. China is Vietnam’s largest import market with an estimated turnover of US$61.3 billion.
In the first 6 months of 2022, trade surplus to the EU is estimated at 15.5 billion USD, up 39% over the same period last year; trade deficit from China is 35 billion USD, up 21.7%; trade deficit from Korea is 21.1 billion USD, up 39.5%; trade deficit from ASEAN is 6.5 billion USD, down 10.9%; trade deficit from Japan is 463 million USD, down 39.9%.
With the above results, the trade balance of goods in June is estimated to have a trade surplus of 276 million USD. In the first 6 months of 2022, the trade surplus was 710 million USD (the same period last year, the trade deficit was 1.86 billion USD). In which, the domestic economic sector has a trade deficit of 15.97 billion USD; FDI sector (including crude oil) had a trade surplus of 16.68 billion USD.
Calculating import and export turnover in the first 6 months of 2022
In the first six months of 2022, thanks to strong export growth, service export turnover is estimated at 4.3 billion USD, up 81.8% over the same period in 2021, of which tourism services reached 651 million USD (accounting for 15.1% of total turnover). turnover), an increase of nearly 8 times over the same period last year; transportation services reached 2 billion USD (accounting for 46.4%), up 154.5%.
Service import turnover in the first six months of 2022 was estimated at 12.3 billion USD, up 22.3% over the same period last year, of which transportation services reached 6.4 billion USD (accounting for 52.1% of total turnover). quota), an increase of 27.2%; tourism services reached 2.5 billion USD (accounting for 20.1%), up 37%. The service trade deficit in the first 6 months of 2022 is 8 billion USD (of which transportation and insurance fees for imported goods are 4.6 billion USD).
Conclusion
Thus, Vncomex has helped you systematize all the import and export figures in the first 6 months of 2022 in Vietnam. The most prominent of which is the strong export growth. Therefore, there are many benefits when importing goods from Vietnam for foreign businesses.
source https://vncomex.com/strong-export-growth/
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