In the first 4 months of the year, a series of Chinese goods imported into Vietnam increased, causing the deficit for the trade balance between Vietnam and China to reach a record of 17.6 billion USD, the highest in 3 years.
1. Trade deficit increased by 665% within 2 years
According to the General Department of Customs, in the first 4 months of 2021, the import turnover of Chinese goods into Vietnam has increased sharply, reaching 33.9 billion USD, an increase of more than 11 billion USD compared to the same period last year and over 20 billion USD compared to 2019. Meanwhile, Vietnam’s export turnover to China only reached 16 billion USD.
Vietnam’s trade deficit with China in the first 4 months of 2021 reached a record high of 17.6 billion USD, an increase of more than 75% over the same period in 2020 and more than 665% over the same period in 2019.
Also according to statistics of the General Department of Customs, in the past 4 months, machinery, equipment and spare parts were imported the most, with a turnover of 7.45 billion USD, an increase of nearly 3 billion USD compared to the previous year. .
Second was computers and components with a turnover of more than 6.3 billion USD, an increase of nearly 3 billion USD over the same period last year.
This is one of the two items with the highest import turnover of Vietnam from China, making the trade deficit with this country still tens of billions of dollars.
According to Customs data, many items from China recently had unusually high import turnover. In which, seafood – which is rarely imported from China – achieved more than 60 million USD in turnover, up more than 22.7 million USD over the same period last year.
Another commodity is chemicals. In the past 4 months, the import turnover of this item in Vietnam is nearly 800 million USD, an increase of nearly 300 million USD compared to the same period last year. In addition, Vietnam also imported nearly 870 million USD of chemical products from China, even though these products are taxed by Vietnam at over 74%.
In the first four months of the year, Vietnam also imported over $920 million of iron and steel products from China, an increase of more than $300 million over the same period last year and nearly $400 million compared to the first four months of 2019.
Currently, Vietnam is imposing very high anti-dumping duties on many types of finished steel and color-plated shrimp from China. These items are on the list of restricted imports due to dumping or products in conflict with domestically produced goods.
2. Increased import of components and raw materials for production
Notably, among the raw materials for production, products such as fabrics, textile materials, and footwear imported from China have had an amazing growth rate.
At the end of 4 months, the import turnover of fabrics from China to Vietnam reached US$2.68 billion, an increase of US$680 million over the same period last year.
Textile, garment and footwear raw materials had a turnover of over 1 billion USD, an increase of more than 300 million USD compared to the same period in 2020 and 2019.
The increase in input materials of the textile, garment and footwear industry shows the recovery of the textile, leather and footwear businesses in the context of the pandemic having a strong impact on orders. However, the large import turnover also proves the increasingly heavy dependence on the supply of raw materials from China of Vietnamese enterprises.
Currently, components for phones, computers, machinery and equipment are still mainly imported from China, accounting for 80% of turnover and increasing.
With computers, components, phones and components, Vietnam’s dependence on China is understandable because most of the large corporations present in Vietnam such as Samsung, LG, Panasonic or Foxconn have homes. large-sized raw materials and components production machines in China.
For machinery products, Vietnam mainly imports processing machines from China or products of the 3rd or 4th life cycle. Meanwhile, Vietnam’s 1st or 2nd lifecycle machinery products are very rarely imported. Imported from EU, US or Japan due to high price and difficult access due to high intellectual property.
Source: Dan Tri Newspaper