Vietnam’s exports and imports lean on foreign enterprises

By Dam Tuan   May 21, 2016 | 11:32 am GMT+7

Foreign enterprises accounted for about 65 percent and contributed nearly $70 billion to Vietnam’s total export and import value in the first four months.

Vietnam’s total trade turnover in the first four months of 2016 reached over $104.4 billion of which 64.9 percent were foreign contributions, according to Vietnam Customs’ statistics. This marks an increase of 2.5 percent compared to the same period last year, including a 6.5 percent rise in exports from the initial value of $53.1 billion and a 1.3 percent decrease in imports from the intial value of $51.34 billion.

vietnams-exports-and-imports-lean-on-foreign-enterprises

FDI companies significantly contributed to Vietnam's exports and imports in the first four months of 2016. Photo by Bkav

Foreign Direct Investment (FDI) companies have seen a 4.4 percent increase year on year with total trading turnover of $67.78 billion. This owes to strong export growth of 10.3 percent, which reached $37.23 billion in the first four months of 2016. Most FDI exports stemmed from commodity groups of telephone, mobile phone and their parts (up 22.7 percent); foot-wear (up 10.1 percent); machinery, equipment, tools and instruments (up 15.5 percent); and handbags, purses, suitcases, headgear and umbrellas (up 26.3 percent).

Domestic companies in contrast lagged behind as marked by a one percent slump in trade turnover to reach $36.67 billion, making up only 35.1 percent of total trade turnover. Domestic exports fell by 1.5 percent to be worth $15.88 billion, due primarily to sharp decline of crude oil export value by 51.7 percent.

Regarding goods imported to Vietnam, domestic companies’ imports decreased slightly by 0.5 percent compared to the same period last year while FDI counterparts cut their imports by 1.9 percent, down to $30.55 billion.