VINACHEM

After three consecutive years of enjoying a trade surplus, Vietnam is forecast to face a trade deficit of US$6 billion this year as the demand to import materials and equipment will be high while exports may not soar.

At a review meeting on Wednesday, Deputy Minister of Industry and Trade Nguyen Cam Tu said this year’s exports are targeted at some US$165 billion, up 10% from last year, while imports are estimated to jump 15.2% to US$171 billion.

If the scenario comes true, Vietnam may run a trade deficit of up to US$6 billion this year, three years after the country enjoyed a trade surplus, including nearly US$2 billion last year.

Deputy Minister Tran Tuan Anh told the Daily that Vietnam would continue its integration into the world’s economy this year as a number of trade agreements the country joins take effect as planned. In addition to tapping into more markets, Vietnam will have to open its door wider to product and service imports.

There will be more opportunities for Vietnam to attract new projects and huge material and equipment will be imported for such sectors as textile and garment, supporting industries, mechanical engineering and electronics.

“This year’s import demand tends to rise considerably compared to previous years while exports will not spike this year given the country’s technology and added value and manpower” Anh said.

According to the ministry, Vietnam exported US$150 billion worth of products last year, up 13.6% and imports rose by 12.1% to US$148 billion.

The foreign direct investment (FDI) sector took a large proportion of the total exports with US$94.4 billion while domestic enterprises contributed only US$48.44 billion worth of products.

Besides, FDI enterprises accounted for over 57% of the total imports of last year with nearly US$84.56 billion.

This year, the ministry also targets to achieve industrial production growth of 7.8-7.9%, retail sales of goods and services up 11-12% and consumer price index at some 5%.