Vietnam trade turnover set to exceed $732 bln this year

Vietnam’s trade turnover could grow 10% year-on-year to a new record of over $732 billion this year, the Ministry of Industry and Trade said.

The country is expected to post a trade surplus of $11 billion after earning an export revenue of $371.5 billion, up 10.5% year-on-year; and spending $360.5 billion on imports.

This would mark a seventh annual trade surplus in a row for the Southeast Asian nation. This should help the country balance its books, boost foreign reserves, and stabilize the exchange rate, the ministry added.

In the period, the country is likely to record 39 export items with turnover of over $1 billion each, up compared with 35 items last year, including nine forecast to top $10 billion in export turnover.

The ministry said that processed and manufactured goods accounted for 86% of the export value as the country delves deeper into the global supply chain and becomes less dependent on exporting raw goods.

The ministry attributed the achievement to the country’s implementation of free trade agreements (FTAs), exploitation of new markets, utilization of e-commerce platforms, and the high pace of customs procedures at Vietnam-China border gates amid the Covid-19 pandemic.

However, the ministry pointed out the slowdown in export growth in the last quarter of this year, due to problems with trade partners amid the global economic downturn and high input material prices.

It also noted the country’s dependence on foreign-invested enterprises' exports, which could account for 74% of the total this year.

For 2023, the country is targeting trade turnover growth of 6% year-on-year, said Deputy Minister of Industry and Trade Tran Quoc Khanh at a recent conference. Other targets are to maintain the trade surplus and growth of 8-9% in retail and service revenues.

At the event, Deputy Minister of Foreign Affairs Nguyen Minh Vu listed challenges for next year, including high inflation and the global economic recession risks leading to decreased demand and consumption.