Trade deficit issues continue

by P.V10 May 2017 Last updated at 07:08 AM

VTV.vn - While Vietnam is participating in many free trade agreements, the trade deficit remains one of the issues the country needs to address. Vietnamese companies are importing more than they export.

From the beginning of the year, this company spent more than half a million dollars on machinery for production. There's no other way, they firm says as no Vietnamese company makes these machines.

Machinery imported for production by businesses accounts for almost 40% of all imports, totalling 11 billion USD. But it does show a recovery in the production sector.

According to the General Statistics Office, exports so far this year reached 61 billion dollars, 15% more than the same period last year. Imports increased to 64 bil$, a 25% increase compared to the same period in 2016. The trade deficit with China has now decreased and South Korea has now taken top place.

While domestic companies are stepping up imports and have recorded ad trade deficit, FDI enterprises are experiencing the opposite. They have a trade surplus of over 5.7 billion dollars.

Experts estimate the trade deficit stands at 4.5%, higher than the set target, that's why policies will need to address businesses to boost production. Foreign companies still account for over 70% of exports, while the proportion of exports produced by domestic firms is shrinking.

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