Trade deficit with China up 76 times in 10 years
(VOV) - Vietnam’s trade deficit with China increased from US$210 million in 2001 to US$16 billion in 2012.
At a recent conference on guiding the implementation of free trade agreements (FTA) by 2020, Deputy Minister of Industry and Trade (MoIT) Tran Quoc Khanh said the country’s deep integration and FTA signing have given a boost to its bilateral trade exchange.
The Head of the Asia-Pacific Market Department Bui Huy Son said Vietnam’s exports to ASEAN grew by 30.7% and 27%, in 2011 and 2012, respectively, to Japan (39.5% and 25%), China (52% and 17%) and the Republic of Korea (52.5% and 18%).
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However, Vietnam is still at risk as an export market for FTA member countries.
The MoIT reported that the country’s trade deficit has dropped from 85% in 2001-2008 to 17% in 2009-2013, mostly with China, ASEAN member countries and the Republic of Korea.
Vietnam’s trade deficit with the RoK rose from 13.6% in 2003-2006 to 21.8% in 2007-2010.
The main reason is that Vietnam has not yet fully exploited FTA advantages as many of its key export products have enjoyed low or zero tariffs, such as raw materials and agricultural products meanwhile, other products like machinery, equipment and electronics which are listed among products receiving incentives accounted for low proportion in total export earnings.