VIETNAM JOINED HANDS WITH THE USA TO BALANCE THE TRADE DEFICIT WITH CHINA

 

Based on the Vietnam Trade Data report for the year 2022, we learned that Vietnam had a profitable business with the United States compared to China. By comparing, we saw that Vietnam had a trade deficit with China worth USD 60.2 billion in the year 2022 which has undoubtedly widened from USD 54 billion in 2021. On the other hand, international trade with the United States resulted in a positive trade balance for Vietnam which was worth USD 94.9 billion.

This has happened as the exports from Vietnam to the US, as per Vietnam Export Data grew in the following categories:

·        Garments and textiles

·        Footwear

·        Mobile phones

·        Electronic gadgets

·        Furniture and wooden items

VIETNAM AND THE UNITED STATES – STRONG BONDING IN PROGRESS

Vietnam is the biggest export market to the US. The exports from Vietnam to the US as per Vietnam Export Data grew by 13.5% reaching USD 109.4 billion in the year 2022. Due to this growth, the trade surplus of Vietnam also went up from USD 81 billion in 2021 to USD 94.9 billion in 2022.

Let’s glance at the latest insights and details shared by Vietnam Trade Data with respect to its trade with the US. Major items imported by Vietnam from the US in the month of November 2022 were:

·        Soybeans (USD 83.2 million)

·        Circuits (USD 63.5 million)

·        Telephones (USD 62 million)

·        Spare parts of aircraft (USD 56 million)

On the other hand, the major goods those were exported by Vietnam to the US in November 2022 were:

·        Telephones (USD 1.82 billion)

·        Furniture items (USD 571 million)

·        Semiconductor chips (USD 460 million)

·        PCs (USD 413 million)

·        Audio devices such as earphones and headphones (USD 380 million)

VIETNAM AND CHINA – GROWING TRADE DEFICIT

Besides this amazing growth in the trade surplus of Vietnam with respect to the US, the nation also experienced a trade deficit with China in 2022. Based on the facts and figures disclosed by the Vietnam Import Data 2022, there was a trade deficit with China worth USD 60.2 billion. In the year 2021, it was USD 54 billion. The imports from China to Vietnam rose by almost 6.6% with the major imports of the following items:

·        Machinery and equipment

·        Electric gadgets

·        Textiles and fabric

·        Smart devices like mobile phones

·        Components and parts

Talking about the latest insights, then as of December 2022, the major products imported by Vietnam as per Vietnam Import Data from China were:

·        Electrical gadgets (USD 924 million)

·        Integrated circuits (USD 670 million)

·        Telephones (USD 580 million)

·        Electrical resistors (USD 391 million)

Whereas the items that were exported from Vietnam as per Vietnam Export Data to China were:

·        Circuits (USD 1.77 billion)

·        Audio recordings (USD 1.75 billion)

·        Broadcasting items and gadgets (USD 841 million)

·        Telephones (USD 329 million)

 

 

CONCLUSION

From the above-mentioned insights and details, it is clear that Vietnam should limit its trade with China as it is causing year on year rise in the trade deficit of Vietnam. Rather than trading more with China, Vietnam should shift its focus to the US. If Vietnam increases its trade with the US, then it will get a positive trade balance and surplus trade funds. So, Vietnam should focus on this point and formulate its strategies accordingly.

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