According to a report of the Ministry of Finance, the total import-export value of the whole country in July 2023 reached USD 57.1 billion, an increase of 2.2%, equivalent to USD 1.3 billion in absolute terms compared to the previous month. In which, exports reached USD 30 billion, an increase of 2.1% (equivalent to USD 0.62 billion) and imports reached USD 27 billion, an increase of 2.4% (equivalent to USD 0.63 billion).

Accumulated over the first seven months of the year, the country's total import-export value reached USD 374.4 billion, a decrease of 13.8%, equivalent to a decrease of USD 60.1 billion in absolute terms compared to the same period in 2022. In which, the total export value reached USD 195.4 billion, a decrease of 10.3% (equivalent to a decrease of USD 22.4 billion) and the total import value reached USD 178.9 billion, a decrease of 17.4% (equivalent to a decrease of USD 37.7 billion).

Thus, the seven-month trade surplus has set a new record, up to USD 16.5 billion, much higher than the previous estimate of USD 15.23 billion, and 12 times higher than the trade surplus of USD 1.34 billion of the same period last year.

Reporting to the Government, Minister of Planning and Investment Nguyen Chi Dung emphasized on a more positive signal of trade in goods, when the import- export turnover in July continued to increase compared with the previous month with an estimated increase of 2.2%, 2.1%, 2.4%, respectively.

Exports of 7 months recorded a decrease of 10.3% compared to the same period last year. In which, key commodity groups such as phones, electronics, textiles, footwear, and seafood all fell sharply.

Specifically, over the 7 months, exports of phones and components decreased by 18.3% over the same period last year; exports of electronics, computers and components decreased by 3%; exports of textile and garment decreased by 15.1%; exports of machinery, equipment, tools and spare parts decreased by 10.4%; exports of footwear decreased by 17.1%; seafood decreased by 25.4%, etc.

Not only exports but imports also fell sharply. Imports over 7 months decreased by 17.4% and that is one of the reasons why the economy has such a large trade surplus.

The large export surplus is a remarkable bright spot. However, in an economy that relies heavily on imported input materials like Vietnam, a large trade surplus is also a sign that production and business are facing difficulties, leading to a decrease in the demand for imported raw materials. This then further affects exports and GDP growth.

Kylie Nguyen