Vietnam’s trade deficit with China drops

April 11, 2016 | 12:57 am PT

Rice bags are prepared for export.

Vietnam saw a reduction of 15.6 percent in its trade deficit with China in the first quarter of 2016, raising expectations about an ongoing decline for the whole year.

During the first quarter, Vietnam's export value to China was up 8.2 percent year-on-year to $3.9 billion. This was attributed to an increase in key export products; including fruit and vegetables, up 72.8 percent; and telephones and their components, up 77.1 percent.

The country spent $10.4 billion on imports from China, eight percent lower than the same period last year. Export value of some key products were fell with equipment down 13.1 percent and telephones and their components down 18.4 percent.

The positive change is expected to raise annual export value from Vietnam to China to $18.5 billion in 2016, up 7.9 percent from last year, while import value is projected at $46.5 billion, down 6.1 percent. As a result, Vietnam could lower its trade deficit with China by 13.3 percent to $28 billion this year.

Source: VietnamPlus