Vietnam trade surplus set to expand to US$2.8 billion in Q1

Vietnam reported an estimated trade surplus of US$1 billion in March, helping to expand the trade surplus to US$2.8 billion in the first quarter, higher than the surplus of US$1.5 billion in the same period last year, the General Statistics Office (GSO) has said in a monthly report.

On breaking down, the domestic sector is estimated to post a trade deficit of US$4.4 billion in the January - March period while foreign-invested firms recorded a trade surplus of US$7.2 billion. The former’s exports are predicted to expand 8.7% year-on-year to US$18.65 billion during the period, accounting for 31.6% of the country's exports. Meanwhile, FDI firms reaped US$40.43 billion from overseas shipments, down 2.9% and accounting for 68.4% of the total.

In March, Vietnam exported goods worth an estimated US$20 billion, down 4.1% inter-monthly, while imports are estimated to expand by 2.3% to US$19 billion.

Data: GSO. Chart: Hai Yen.

Overall, Vietnam's trade turnover is expected to reach US$115.34 billion in the January – March period, down 0.7% year-on-year, of which its export value could amount to US$59.08 billion, up 0.5% year-on-year, and imports are estimated at US$56.26 billion, down 1.9%.

According to the report, the spread of the Covid-19 pandemic in Vietnam’s major trade partners, including China, South Korea, the US and EU, are causing negative impacts on trading activities of a number of Vietnam's key products.

Among export staples during the three-month period, phones and parts are predicted to earn the largest export turnover of US$12.4 billion, up 2% year-on-year and accounting for 20.9% of Vietnam’s total exports.

In addition, electronic products, computers and components earned an estimated US$8.2 billion, up 16.2% year-on-year; garment with US$6.5 billion, down 8.9%; equipment and parts with US$4.7 billion, up 17.7%; footwear with US$3.9 billion, down 1.9%; wood and wooden products with US$2.5 billion, up 9.5%; transportation vehicles with US$2 billion, down 5.5%; fishery with US$1.6 billion, down 11.2%.

Data: GSO. Chart: Hai Yen.

In the January – March period, the US remained Vietnam's biggest export market, spending US$15.5 billion on Vietnamese goods, up 16.2% year-on-year, followed by China with US$8.4 billion, up 11.5%, and the EU with US$7.5 billion, down 14.9%. 

Meanwhile, China continued to be Vietnam's largest supplier, selling US$13.3 billion worth of goods to Vietnam, down 18% year-on-year. 

South Korea could claim the second place by exporting US$11.7 billion worth of goods to Vietnam, up 2.4% year-on-year, followed by ASEAN countries with US$7.2 billion, down 8.3%.