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ing by 6-8 per cent in 2022 as a whole and
for annual trade to also be in surplus, PROPORTION OF EXPORTS OF CERTAIN COMMODITIES, JANUARY 2022
which would help ensure that GDP growth
rebounds to 6-6.5 per cent. Phones and components: $4.5 billion
Computers, electronic products,
‘DARK SIDE’ REMAINS
The positive trade performance is, how- and components: $4.11 billion
ever, entirely due to the achievements of Textiles and garments: $3.57 billion
the FDI sector.
According to Vietnam Customs, the total 29% 15% Machinery, equipment, tools,
import-export value of FDI enterprises in and other spare parts: $3.5 billion
January was $41.57 billion, up 6.1 per cent Footwear: $1.94 billion
year-on-year. Exports reached $22.09 billion,
a 2.4 per cent increase, and imports $19.48 13% Wood and wooden products: $1.55 billion
billion, up 10.7 per cent. Thus, FDI enter- Vehicles and spare parts: $1.02 billion
prises posted a trade surplus of $2.61 billion,
which confirms the dependency Vietnam’s 3% Steel: $900 million
export growth has on foreign enterprises. 3%
The trade surplus seen by FDI enter- Fisheries: $870 million

prises has increased sharply for many 3% 5% 6% 11% 12% Other: $8.89 billion
years, while domestic enterprises have
always been in deficit. Export turnover
by FDI enterprises (including crude oil) Source: General Department of Vietnam Customs
was estimated at $247.5 billion in 2021,
up 21.1 per cent compared to 2020. Mean-
while, the export turnover of domestic
enterprises was some $88.7 billion, up this will affect overall export turnover. production and export performance, if it

13.4 per cent but less than the overall Moreover, a trade surplus reliant upon is solely because imports are falling more

export growth in the country as a whole FDI enterprises reflects the poor compet- sharply than exports are rising then this is
of 19 per cent and accounting for just itiveness of domestic enterprises and the a matter of some concern. Imports of raw

26.4 per cent of the total. absence of strong links between the two. materials are used as inputs for production,

Sustainable growth requires strong Domestic enterprises have not yet shown so a low increase in imports is sure to
internal resources, but Vietnam’s domestic sufficient potential to participate deeply affect economic growth in the future.

enterprises remain weak and have not in global supply chains. In addition, due to the impact of the

improved as strongly as expected given Vietnam’s growing reliance on FDI pandemic and the economic difficulties
the many free trade agreements (FTAs) makes its economy more vulnerable to created, individuals and businesses cut

the country has signed in recent years. shocks like the pandemic and the resulting their spending on consumption and invest-

Deputy Minister of Industry and Trade disrupted supply chains. And many export ment, leading to a sharp decline in imports
Tran Quoc Khanh said that the competitive industries depend on imported raw mate- that led to the trade surplus.
advantage of Vietnam’s exports is still rials, because domestic supporting indus- Vietnam has signed 15 FTAs to date.

based on price, not on value. Therefore, tries are still to develop and address this Deputy Director of the Ministry of Industry

export development is not really sustainable, longstanding issue. and Trade (MoIT)’s Import and Export
and when goods in the market fluctuate, While a trade surplus indicates sound Department, Mr. Tran Thanh Hai, noted
that the presence of multiple FTAs is a
key factor in Vietnam further attracting
IMPORT AND EXPORT VALUE BY REGION, JANUARY 2022 ($ BILLION) investment capital and boosting production
capacity, to the benefit of export turnover.
He warned local firms, however, to be
cautious about international transactions.

13.42
Asia “Using FTAs amid growing protectionism
24.73 will require that Vietnamese firms under-
stand technical barriers in their markets,
11.29 to guarantee sustainable trade perform-
Americas
1.9 ance,” he said.
According to the Multilateral Trade
5.32 Policy Department at MoIT, the successful
Europe negotiation and signing of FTAs with Viet-
1.73 nam’s leading trade partners promises to
bring a host of opportunities for economic
0.5 growth and the diversification of both
Oceania
Exports Imports import and export markets. The imple-
mentation of commitments with European
0.32 countries and other regions in the world
Africa will bolster the development of import
0.33 and export markets in a more diversified,
Source: General Department of Vietnam Customs balanced, and efficient manner. %
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