The epidemic is complicated, the export of goods decreases, Viet Nam trade deficit again

Product Description:

Import and export activities in May 2021 were strongly affected by the fourth wave of Covid-19 outbreaks in the country, causing the production activities of some enterprises in industrial zones in some provinces to be affected. Export turnover of goods is estimated to decrease compared to the previous month and Viet Nam has a trade deficit for the second consecutive month.

It is estimated that in May 2021, the export turnover of goods will reach $ 26 billion, decreased by 2.1% compared to the previous month. Most of the products in the group of 6 key commodities with export turnover of more than 1 billion USD decreased or increased slightly compared to the previous month, including: Phones and their parts went down 3%; electronic goods, computers and their parts edged down 5%; machinery, instrument and accessory reduced by 18%; textiles and garments increased by 3.7%; wood and wood products increased by 0.1%.

Regarding imports, the total turnover of May 2021 was estimated at $28 billion, went up by 0.8% compared to the previous month. The largest group of imported goods in May were electronic goods, computers and their parts, reaching 5.2 billion USD, went down 5.2% from the previous month. In addition, some other groups of 鈥渂illion USD鈥 imported goods all decreased or increased slightly compared to the previous month such as: Machinery, instrument and accessory reached 3.9 billion USD, went down 0.6%; phones and their parts reached 1.3 billion USD, decreased by 3.2%; plastics reached 1.1 billion USD, increased slightly by 0.5%.

Thus, the trade balance of goods in early May 2021 is estimated to have a trade deficit of 2 billion USD, which is the second consecutive month of trade deficit, after April had a trade deficit of 1.23 billion USD. Generally in 5 months, total export turnover reached 130.94 billion USD, import reached 131.31 billion USD. With a trade deficit of 2 billion USD in May, accumulated from the beginning of the year to the end of May 2021, the merchandise trade balance returned to a trade deficit of 369 million USD while the same period in 2020 had a trade surplus of 3.9 billion USD.

The export decline in the context of the complicated development of the Covid-19 pandemic in many localities, especially some key provinces and cities in the Northern region, of which Bac Giang, Bac Ninh and Ha Noi are 3 of 8 provinces with import-export turnover of 10 billion USD or more (calculated in the first 4 months of 2021), it is a huge difficulty for localities across the country in protecting industry areas against the spread of disease. In May, Bac Giang was the locality with the most complicated disease development with nearly 2.000 new cases within 1 month. This is a province with impressive growth in import and export turnover in recent years. In the first 4 months of 2021, the total export and import turnover of goods reached 10.38 billion USD, up 83.3% over the same period last year (the first 4 months of 2020 increased by 54.4% over the same period of year 2019), of which exports reached USD 5.15 billion, went up 82.8%; imports reached $5.23 billion, went up 83.7%.

It is forecasted that in the coming days, the Covid-19 pandemic will continue to have complicated and unpredictable developments, difficult to control, especially in industrial zones, affecting many socio-economic activities, especially in major economy centers of the country. In that situation, the protection of industrial zones is a key issue for disease control. Therefore, on May 24, 2021, the Government Standing Committee held a meeting on the prevention of the Covid-19 pandemic. After this meeting, the Government Office issued Notice No. 121/TB-VPCP announcing the conclusion of Prime Minister Pham Minh Chinh on the prevention of the Covid-19 pandemic. The Prime Minister requested all levels and sectors to continue to focus on actively and effectively preventing the Covid-19 pandemic; it is necessary to make good use of the achieved results, draw from experience in adjustment to quickly adapt to the new developments of the pandemic with appropriate and effective solutions; must be very calm, intelligent, flexible, creative, to handle and see difficulties and challenges as motivation to rise up, to overcome and to grow; which focuses on performing well the tasks related to industrial zones such as:

鈥 Workers, employees in industrial zones are one of the subjects prioritized for vaccination;

鈥 Strengthening stricter management of isolation activities, medical declaration, safety and pandemic prevention in industrial zones and factories with large numbers of workers鈥

鈥 The Ministry of Industry and Trade shall assume the prime responsibility and coordinate with the Ministries of Transport, Health, relevant ministries and localities expeditiously completing the process of transporting and circulating raw materials for production and consumption of goods. between enterprises, between industrial zones, between pandemic-affected areas and between localities, ensuring safety for pandemic prevention and control and not causing stagnation and obstruction of production and business activities.

鈥 The Ministry of Foreign Affairs shall urgently report to the Prime Minister for decentralization for decision and supervision, strict and lawful inspection of jobs for experts, investors, high-tech workers and relatives to work in Viet Nam.

Believing that with the drastic solutions of the Government and the Prime Minister, Viet Nam will soon control this COVID-19 pandemic, effectively implementing the 鈥渄ual goal鈥 of disease prevention to protect people鈥檚 health, while recovering and developing socio-economic in the new normal state.