While some products experienced sharp decline, such as steel with reduction of 28.3%, footwear of 11.5%, textile & garment of 7.2%, other main export products continued its strong growth and being the driving force for Vietnam’s export. 

Notably, export value of smart phones and related accessories accounted for US$4.2 billion, an increase of 80.7% over the same period of last year. Besides, this number for textile & garment is estimated at US$2.3 billion, up 7.6%, electronic products; computers and accessories reached US$2.2 billion, increasing 37.9%; footwear accounted for US$1.3 billion, up 11.5%; machinery and equipment were US$1.1 billion, up 18.2% year-on-year. 

Also in this January, China continues to be Vietnam’s largest export market with trade value of US$4.5 billion, 2.5 times higher than the last year period, followed by the US with US$3.5 billion, increasing 17%, the European Union (EU) with US$3 billion, up 6.6% and ASEAN with US$1.7 billion, increasing 15.7% over the last year’s period. 

On the opposite way, Vietnam’s import value in January reached US$19.3 billion, a sharp increase of 47.4% compared to the same period of last year, mainly due to high import demand of materials for production and consumption near Tet festive period.

That said, in January, Vietnam has trade deficit of US$300 million, in which the domestic sector experienced trade deficit of US$2.4 billion and the FDI sector (including crude oil) has trade surplus of US$2.1 billion. 

In 2017, Vietnam’s trade value achieved an impressive record of US$425 billion, up 18.32% over 2016, said the Vice Minister of Industry & Trade Do Thang Hai in the government’s press conference on February 2. 

Specifically, Vietnam’s export value accounted for a six-year high of US$213.8 billion, increasing 21.1% over 2016, exceeding the target set by the National Assembly of 7 – 8%. 

Last year, Korean became the largest trade deficit market of Vietnam with trade value of US$31.8 billion, up 53.4% over the last year. Meanwhile, Vietnam’s trade deficit to China reduced by 17.4% year-on-year to US$23.2 billion.  

“In addition to maintaining the strong momentum of last year’s trade activities, priority in 2018 is to improve export activities to Vietnam’s main trade deficit markets such as Korea, ASEAN, China,” Hai said.

2017 proves to be a successful year for FDI sector, which has contributed significantly to the economic growth. Bearing this in mind, this sector has had trade surplus of US$29 billion, up 22% over the last year’s period, taking Vietnam’s trade surplus in 2017 to US$2.7 billion. 

In order to improve the economy’s competitiveness, MoIT along with related administrative agencies have to provide better policies supporting the business community, especially domestic enterprises, requested Hai. 

“The FDI sector has been contributing largely to the economy, so this time domestic enterprises have to step up, for which the MoIT will provide necessary supports.”

In the coming time, MoIT will create favorable conditions to form a better connection between domestic and FDI sectors, especially in technology transfer, with a view to improve domestic enterprises’ competitiveness and export value.