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COVER STORY

A BETTER

BALANCE SOUGHT

Vietnam’s trade was in surplus in the opening month of the year
but issues remain in continuing the trend.

DUC LAN Reports

tinued to be the largest market, posting
value of $1.85 billion, up 42 per cent and
accounting for 51.9 per cent of all textile
and garment exports. Following was the
EU, with $382 million in value, up 39.1
per cent, and South Korea with $314 mil-
lion, up 33.4 per cent.
Machinery, equipment, tools, and other
spare parts reached $3.5 billion in value, a
7.5 per cent increase year-on-year. Major
markets included the US, with $1.58 billion,
up just 0.5 per cent, the EU with $473
million, up 18.6 per cent, and Japan with
$255 million, up 24.2 per cent.
Wood and wooden product exports
totaled $1.55 billion, an increase of 14.3 per
cent compared to January 2021. Large vol-
umes went to the US, which posted revenue
of $928 million, up 12.8 per cent, Japan,
with $153 million, up 16.3 per cent, and
China, with $134 million, up 27 per cent.
One remarkable result was that, for
the first time, Vietnam recorded a trade
surplus with Japan. While exports totaled
$2.04 billion, a 17.4 per cent increase
year-on-year and accounting for 6.6 per
PHOTO: VIET TUAN $1.67 billion, down 0.3 per cent and
cent of total export value, imports reached
accounting for 5.7 per cent, for a trade
surplus of $370 million. This was quite a
surprise, as trade with Japan was in deficit
last year to the tune of $2.52 billion, a
ietnam posted a trade surplus of tilizers, chemicals, leather products, gar- 138.5 per cent increase against 2020.
$1.39 billion in January, a $1.3 ments, steel, computers, electronics, phones, Thirty-eight of Vietnam’s 63 cities and
V billion increase year-on-year, and machinery. provinces posted export turnover in excess
according to the General Department of Exports of phones and components stood of $100 million, with eight surpassing the
Vietnam Customs. This is a positive result at $4.5 billion, down 26.1 per cent year-on- $1 billion mark: Ho Chi Minh City, Hanoi,
given the lingering complexity of Covid- year. Those to the US reached $1.07 billion, Bac Ninh, Binh Duong, Thai Nguyen,
19 and with global trade yet to recover. An down 8.9 per cent, to China $956 million, Dong Nai, Hai Phong, and Bac Giang.
assessment of the figures, however, reveals down 35.5 per cent, and to South Korea Analysts view the January trade surplus
that the surplus is primarily due to FDI $299 million, down 18.3 per cent. as a good result for Vietnam’s economy,
enterprises, while sustainable growth Computers, electronic products, and especially given the problems posed by
requires a strong domestic sector. components brought in $4.1 billion, a 5.5 Covid-19. Being in surplus has two mean-
per cent increase against January 2021. ings for Vietnam’s trade. Firstly, it will
NOTABLE PERFORMERS Exports of this group to the US totaled contribute to improving the overall balance
The total import-export value of goods $975 million, up 3.9 per cent, to China of payments and boost the volume of
nationwide in the opening month of 2022 $760 million, down 6.6 per cent, to the foreign currencies entering the country,
stood at $60.29 billion, up 9.6 per cent EU $660 million, up 20.2 per cent, and adding to sources such as FDI, remittances,
year-on-year. Exports totaled $30.84 billion, to Hong Kong (China) $420 million, and indirect investment and helping
up 8.1 per cent, and imports $29.45 billion, down 5 per cent. increase foreign exchange reserves and
up 11.3 per cent. Textile and garment exports also per- stabilizing exchange rates. And secondly,
Among 45 key export items, 38 saw an formed well in the opening month of the trade being in surplus stimulates domestic
increase in revenue year-on-year, some by year, reaching $3.57 billion, a 34.4 per production, pushing up GDP growth.
over $100 million, including seafood, fer- cent increase year-on-year. The US con- The government targets exports increas-

16 | VIETNAM ECONOMIC TIMES | MARCH 2022 www.en.vneconomy.vn