Although import growth is high, it is not a cause for concern because 89% of total import turnover in the first 7 months of 2024 is the group of goods that need to be imported.

Exports continue to be a bright spot in the economic picture.

According to the Ministry of Industry and Trade, with the gradual recovery of the world market and increased export orders, import and export activities in the first 7 months of 2024 have improved and achieved positive results.

In July alone, the total import and export turnover of goods is estimated at 69.72 billion USD, up 8.7% over the previous month and up 21.8% over the same period last year.

In the first 7 months of 2024, the total import and export turnover of goods reached 439.88 billion USD, up 17.1% over the same period last year, of which exports increased by 15.7%; imports increased by 18.5%. The trade balance of goods had a surplus of 14.08 billion USD.

Notably, in the first 7 months, goods exports continued to be a bright spot in the overall picture of the economy with an estimated turnover of 226.98 billion USD, up 15.7% over the same period last year. Of which, the domestic economic sector reached 63.08 billion USD, up 21.1%, accounting for 27.8% of total export turnover; the foreign-invested sector (including crude oil) reached 163.9 billion USD, up 13.8%, accounting for 72.2%.

Also in the first 7 months of 2024, there were 30 items with an export turnover of over 1 billion USD, accounting for 91.9% of total export turnover (there were 9 items with export turnover of over 5 billion USD, accounting for 70.8%).

Regarding the export of commodity groups, in the first 7 months of 2024, exports grew strongly and evenly in all 3 main commodity groups. In particular, the agricultural product group has maintained its growth momentum from 2023 to present with a total turnover estimated at 21.4 billion USD, an increase of 19.6% over the same period in 2023, accounting for 9.4% of the total export turnover of the country. Due to the increase in export prices, most of the items in this group achieved a high export turnover growth rate of double digits compared to the same period last year, such as coffee increased by 30.9%; rice increased by 25.1%; tea of ​​all kinds increased by 34.8%; vegetables and fruits increased by 24.3%; cashew nuts increased by 22.1%; pepper increased by 46.3%; cassava and cassava products increased by 12.5%.

The export turnover of the processed and manufactured industrial group is estimated at nearly 192 billion USD, accounting for 84.6% of the total export turnover and increasing by 15.4% over the same period in 2023. Many product groups achieved high growth rates, including key export items such as: Cameras, camcorders and components increased by 51.5%; computers, electronic products and components increased by 30%; plastic products increased by 29.9%; wood and wood products increased by 23.3%; iron and steel of all kinds increased by 9.8%; machinery, equipment, tools and other spare parts increased by 19%; textiles and garments increased by 4.3%; footwear of all kinds increased by 10.1%; phones of all kinds and components increased by 12.3%...

In July alone, exports were estimated at 35.92 billion USD, up 6.7% over the previous month. Of which, the domestic economic sector reached 9.87 billion USD, up 9.8%; the foreign-invested sector (including crude oil) reached 26.05 billion USD, up 5.6%. However, compared to the same period last year, the export turnover of goods in July was estimated to increase by 19.1%, of which the domestic economic sector increased by 25.9%, the foreign-invested sector (including crude oil) increased by 16.7%.

Agricultural products have maintained their growth momentum from 2023 to present with a total turnover estimated at 21.4 billion USD.

According to the report of the Ministry of Industry and Trade, export turnover to most markets, especially markets that are major trading partners of our country in the past 7 months, has recovered well and achieved high growth rates at double digits. In particular, the United States continues to be our country's largest export market with an estimated turnover of 66.09 billion USD, accounting for 29% of the total export turnover of the country and increasing by 24.4% over the same period last year (the same period last year decreased by nearly 20%).

Next is the Chinese market with an estimated turnover of 33.38 billion USD, up 7.2%; the EU market is estimated at 29.34 billion USD, up 15.8%; South Korea is estimated at 14.39 billion USD, up 9%; Japan is estimated at 13.46 billion USD, up 2.8%.

Import growth within safe range

On the other hand, the Ministry of Industry and Trade said that in the context of high domestic production and consumption, the demand for imported raw materials, machinery and equipment for production increased sharply, so the import turnover of goods in July 2024 is estimated at 3.8 billion USD, up 11% compared to the previous month and up to 24.7% compared to the same period last year. Of which, the domestic economic sector reached 12.2 billion USD, up 11.3%; the foreign-invested sector reached 21.6 billion USD, up 10.8%.

In the first 7 months of 2024, the import turnover of goods is estimated at nearly 213 billion USD, up 18.5% over the same period last year, of which the domestic economic sector reached 78 billion USD, up 21.5%; the foreign-invested sector reached nearly 135 billion USD, up 16.9%. In 7 months, there were 35 imported goods worth over 1 billion USD, accounting for 89.4% of total import turnover (there were 10 imported goods worth over 5 billion USD, accounting for 62.5%).

In an interview with VTV Times reporter, a representative of the Import-Export Department (Ministry of Industry and Trade) emphasized that although imports grew strongly, there was no cause for concern because the group of goods that accounted for 89% of total import turnover in the first 7 months of 2024 needed to be imported.

The trade balance of goods in July is estimated to have a trade surplus of 2.12 billion USD. In the first 7 months of 2024, the trade balance of goods is estimated to have a trade surplus of 14.08 billion USD (the same period last year had a trade surplus of 16.5 billion USD). Of which, the domestic economic sector had a trade deficit of 14.92 billion USD; the foreign-invested sector (including crude oil) had a trade surplus of 29 billion USD.

Specifically, machinery, equipment, tools, spare parts and raw materials for domestic production with an estimated turnover of 189.3 billion USD, up 19.7% over the same period in 2023. This is a positive signal for the economy in the context of high domestic production and consumption, the demand for imported raw materials, machinery and equipment for production has increased sharply to serve newly signed orders.

Due to the strong recovery of production and export leading to an increase in the demand for imported machinery, equipment and raw materials for domestic production, our country's imports in the first 7 months of 2024 from most key markets increased. China continues to be our country's largest import market with an estimated turnover of 79.2 billion USD, up 34.9% over the same period last year and accounting for 37.2% of the country's total import turnover; Next is imports from the Korean market estimated at 32.1 billion USD, up 12.6%; ASEAN market estimated at 26.5 billion USD, up 13.3%; Japan estimated at 12.4 billion USD, up 4.6%; EU estimated at 9.2 billion USD, up 8.7%; United States estimated at 8.5 billion USD, up 6.2%.

By market area, the trade surplus with the US is estimated at 57.5 billion USD, up 27.6% over the same period last year; the trade surplus with the EU is estimated at 20.1 billion USD, up 19.4%; the trade surplus with Japan is estimated at 1.1 billion USD, down 14%. However, the trade deficit with China is estimated at 45.8 billion USD, up 65.4%; the trade deficit with South Korea is estimated at 17.7 billion USD, up 15.7%; the trade deficit with ASEAN is estimated at 5.5 billion USD, up 21%.

Source: CafeF