Reducing trade deficit with China is a good sign for Vietnam, says an official of the Ministry of Industry and Trade MoIT, Vietnam. The country’s trade deficit with China fell by 13.3 per cent to $9 billion in the first eight months of 2016 thus ending the rising trade deficit faced from 2001, according to the General Statistics Office (GSO). Deputy Director of the MoIT’s Industry and Trade Information Center Le Quoc Phuong blamed the global economic downturn that caused a reduction in demand in almost all markets including Vietnam. Furthermore, domestic businesses are striving to intensify their import markets to lessen dependence on the traditional ones, he said. He added saying that that they are actively importing commodities from other markets such as the Republic of Korea (RoK).
The GSO said Vietnam imported goods worth $20.3 billion from RoK in the last eight months of this year showing a year-on-year rise of 9.3 per cent mainly computers, electronic products and spare parts, he cited. However, the declining trade deficit with China at present is just temporary, he said, noting that made-in-China commodities still remain the first choice of Vietnamese businesses due to the proximity between the two countries and highly competitive prices. When economic growth bounces back, Vietnam needs more measures to reduce imports from China to reach a trade balance in a sustainable manner, he recommended.