Vietnam FDI sector reaps bigger trade surplus as exports accelerate

Foreign-invested enterprises (FIEs) in Vietnam have booked an estimated merchandise trade surplus of $29 billion in Jan-Jul 2024, expanding from $24 billion in Jan-June 2024, according to government data.

In the seven-month period, the FIEs exported goods worth $163.9 billion, up 13.8% year-on-year, including $26.05 billion in July, the General Statistics Office said in a monthly report released Monday.

This accounted for 72.2% of the country’s total exports in the period.

The foreign direct investment (FDI) sector spent $134.9 billion on imports in the period, up 16.9% year-on-year and making up 63.36% of the country’s total.

Vietnam’s total exports rose 15.7% year-on-year in Jan-July 2024 to $226.98 billion, up 14.5% from Jan-Jun.

Meanwhile, its imports grew 18.5% year-on-year to $212.9 billion, resulting in a merchandise trade surplus of $14.08 billion, up from $11.63 billion in Jan-Jun period.

During the seven-month period, Vietnam reported 30 export staples having a turnover exceeding $1 billion each, accounting for 91.9% of the total export revenue. Manufacturing sector shipments totaled $199.4 billion, or 88.1% of the total.

The biggest cash earners for Vietnam were electronics, computers, and components; phones and parts; machinery, equipment; textile and garment; and footwear.

Meanwhile, there were 35 items whose import turnover passed the $1-billion mark each, or 89.4% of total imports. The biggest items were: electronics, computers and parts; machinery and equipment; fiber; steel and steel products; and plastics.

The U.S. continued to be the top buyer of Vietnamese goods, with a Jan-Jul value of $66.1 billion, enabling Vietnam to reap a surplus of $57.5 billion, up 19.4% year-on-year.

China was the largest import market, with $79.2 billion. Vietnam posted a trade surplus of $45.8 billion with the neighboring country, up 65.4% year-on-year.

Government data also showed that Vietnam attracted $18 billion in FDI commitments in the year to July 20, up 10.9% year-on-year. FDI disbursement in the period was estimated at $12.55 billion, up 8.4% year-on-year.