Tax & Accounting Blog

Vietnam’s Export and Import Results – First Two quarters of 2015

Blog, Global Trade, ONESOURCE September 10, 2015

At a glance

According to the latest statistical data from the General Department of Vietnam Customs[1], the total export and import turnover rates during the first six months of 2015 reached 158.6B USD, noting an increase of 13% compared to that of the same period of the previous year. By breaking this down into flow of goods, the export turnover rate was 77.77B USD, a 9.3% hike from previous year with the import turnover recorded at 80.84B USD at a growth rate of 16.7%.  In summary what this reflects is a large trade imbalance for Vietnam during the same six month period at 3.07B USD – i.e. trade imbalance when the export turnover is not equal to the import turnover (80.84B-77.77B=3.07B deficit).

Exports and imports under business types

Vietnam’s export and import turnover rate of Foreign Direct Investment (FDI)[2] enterprises during the first six months of 2015 was 100.7B USD, marking an increase of 22% compared to that of the same period of the previous year and contributed to 63.5% of the total exports and imports for the country.  In the meantime, the total export and import turnover rate of local enterprises only achieved 57.9B USD compared to that of the same period of 2014.[3]

Exports

Export of merchandise of the local enterprises (domestic companies) plunged during the first two quarters of 2015 while FDI’s gained a 20% increase. Total export turnover of local businesses was 25.23B USD, an 8.4% decrease from last year –Refer to the data provided in Chart 1 and Chart 2 below.

Chart 1: Main exports of Local enterprises

Vietnam Chart 1

Chart 2: Main exports of FDI enterprises

Vietnam2

 Total export turnover of FDI enterprises was 52.54B USD, bringing about an increase of 20.4% compared to that of the same period of the previous year; an increase of 8.92B USD. Of note for background on these figures, there was strong growth in smart phones and their spare parts (a hike at 3.06B USD), computers, and electronic products and their components (an increase of 2.73B USD).

Exports continue to play an important role in shifting Vietnam’s economy, especially as the main source of foreign currency in exchange for import purposes. Based on this momentum,  the export’s outcome (turnover rate) will help the government to re-arrange production schemes nationwide in an effective manner.

Imports

Import of merchandise of the FDI enterprises after June 2015 recorded at 48.17B USD, a hike of 23.8%, much higher than the growth speed of the local enterprises. The categories of computers, electronic products and their spare parts (at 2.75B USD), machines and equipment and parts (at 3.08B USD), smart phones and their spare parts (1.22B USD) noted a rise. Total import value of local enterprises during the first six months of 2015 was 32.67B USD, an increase of 7.7%. There was also an increase in such categories as machines, equipment, tools, and parts up from 686M USD. Iron and steel grew at 571M USD, with garments up at 113M USD. The influx of FDI enterprises have been diverted from other neighboring countries impacting imports for investments in the form of raw materials, machines and equipment, which are critically important because of the lack of availability in local supply.

Export and Import markets

In the first two quarters of 2015, total merchandise value exchanged between Vietnam and its Asian partners was recorded at nearly 105B USD, resulting in an increase of 12.8 % compared to that of the same period of 2014 and continuously gained with 66.2% of total export and import turnover. Export and import between Vietnam and the U.S. reached 25.22B USD, leading to an increase of 21.1% in the same period of the previous year. Europe reached 21.86B USD, an increase of 7.9B USD. Australia and New Zealand (ANZ) at 2.95B USD saw a decrease of 9.4%.  Africa gained 2.14B USD, noting growth at 21.8%.

Asia was still the biggest import market for Vietnam during the first 6 months of 2015 recorded at 38.12B USD, following the U.S. at 19.72B USD, EU at 16,53B USD, ANZ at 1.74B USD and Africa at 1.67B USD.

Chart 3: Vietnam Export and Import Turnover in the first two quarter 2015

Export      

VietnamChart3                                                                             

 Import

VietnamChart4

In light of export results during the first half of the year 2015, the USA remained the biggest partner to Vietnam, at 15.79B USD, reporting an increase of 19.2% compared to that of the same period of 2014. EU recorded at 14.89B USD, up 12.4%; ASEAN was 9.12B USD, a slight reduction of 1.6%, and China was 7.73B USD an uptick of 5.2%.

In light of import, China was the biggest supplier of merchandise to Vietnam market during the first 4 month valued at 24.22B USD, an increase of 23.2% compared to that of the same period of 2014. Import from Korea remained also rather high at 17.73B USD, a rate of sharp increase of 31% and followed by ASEAN with 11.91B USD a hike of 5.3%.

Main exported items were smart phones and spare parts, computer, electronic devices, parts, machines, tools, equipment, textiles, footwear, fiber and thread, handbags, wallets, caps and umbrellas, wood and wood-related products, crude oil , coffee , rice and fisheries.

Main imported items were machines, equipment, tools and spare parts, computer, electronic products, devices and spare parts, steel, gasoline, plastics, raw materials for footwear and textile industries, animal foods and materials, and automobiles.

Since 2012, Vietnam has been reporting trade surpluses as exports grow stronger than imports. The perspective of Vietnam’s export and import volume during the first two quarters of 2015 appears to paint a rosy picture for the rest of the year. Vietnam will continue to tap into such those potential markets as EU, North America, Australia and New Zealand, Japan, Korea and China in order to shorten the gap of the country’s trade imbalance.

To learn more about import or export, visit our ONESOURCE Global Trade page

 

References:

Source: General Department of Vietnam Customs (Chart 1 and 2) 

http://www.customs.gov.vn/Lists/ThongKeHaiQuan/ViewDetails.aspx?ID=828&Category=Phân tích định kỳ&Group=Phân tích

http://www.customs.gov.vn/Lists/ThongKeHaiQuan/ViewDetails.aspx?ID=828&Category=Phân tích định kỳ&Group=Phân tích;

Source: General Department of Vietnam Customs (Chart 3)

http://www.customs.gov.vn/Lists/ThongKeHaiQuan/ViewDetails.aspx?ID=828&Category=Phân tích định kỳ&Group=Phân tích

www.moit.gov.vn

[1] http://www.customs.gov.vn/Lists/EnglishStatistics/StatisticalData.aspx?language=en-US&Group=Statistical%20data

[2] Foreign Direct Investment are the net inflows of investment to acquire a lasting management interest (10 percent or more of voting stock) in an enterprise operating in an economy other than that of the investor. It is the sum of equity capital, reinvestment of earnings, other long-term capital, and short-term capital as shown in the balance of payments.

[3] When declaring goods for imports and exports, FDI enterprises declare in the dedicated regional or provincial customs departments. Data generated can indicate two blocs: Local enterprises and FDI enterprises.