Vietnam exports, imports shrink in Jan-May

HANOI: Vietnam’s total exports in the January-May period dwindled 11.6 percent from a year earlier to $136.17 billion while imports dipped 17.9 percent to $126.37 billion, according to data released by the General Statistics Office (GSO) on Monday.

Vietnam recorded a trade surplus of $9.8 billion in the first five months of the year. As sluggish global demand has crimped exports, the data showed Vietnam’s trade surplus with the United States, its largest export market, plunged 22 percent to $31.2 billion in the first five months from a year ago.

Among the biggest export earners for the country, furniture and wooden products posted the largest drop of 28.7 percent to about $5 billion.

Smartphones slumped 16 percent to $21.2 billion while garments and footwear fell 17.8 percent and 13.3 percent to $12.3 billion and $8.2 billion, respectively.

Vietnam’s trade deficit with China, its largest trading partner, shrank 16.7 percent to $23.6 billion, the statistics department said.

The import declines were closely connected to a contraction in manufacturing activity as factories cut their purchases of raw materials and equipment for production.

About 94 percent of Vietnam’s imports are spent on raw materials and equipment for production which slumped 18.2 percent in the first five months from a year ago while imports for domestic consumption, accounting for around 6 percent of total imports, fell 12.7 percent over the period, said the GSO.

Inbound shipments of machinery, equipment, appliances and components declined 14.6 percent while imports of computers, electronic products and spare parts fell 13.1 percent in the period, official statistics showed.

In an attempt to keep the economic growth at 6.5 percent this year, the Southeast Asian country has stepped up efforts to shore up its export-driven economy, including interest rate cuts, and exempting, reducing, extending, postponing, or deferring some taxes and fees for businesses and manufacturers.