The trade deficit will be a challenge for Vietnam this year. Vietnam still depends on imported materials, machines, equipment and spare parts. The nation’s export turnover in January this year was down 1.3 per cent year on year, while imports increased by 3.1 per cent.

In January, export value of key products sharply reduced. Exports of phones and devices were down 27.5 per cent and exports of electronics and computers decreased by five per cent. The value of machines, equipment, parts and tools which were imported was up 3.8 per cent.

This year, the implementation of free trade agreements and major agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the EU-Vietnam Free Trade Agreement will create a new wave of investment in Vietnam by domestic and foreign businesses looking to take advantage of new opportunities. Therefore, imports of machinery and equipment for projects and purchases of materials for production will increase.

The growth of the textile and garment industry is seen as unpredictable this year. With the trade war, if there is a 15 per cent tax increase, the competition in the market is expected to be very fierce. In the face of the situation, the target has been adjusted to a growth rate of eight to nine per cent.