July alone saw Vietnam enjoy a trade surplus of estimated US$1 billion, bringing seven-month trade surplus to US$6.5 billion, much higher last year’s figure of US$1.98 billion recorded during the same period, according to the Import-Export Department under the Ministry of Industry and Trade.
The domestic economic sector recorded a trade deficit of US$11.1 billion, while the foreign invested sector (including crude oil) posted a surplus of US$17.6 billion.
The COVID-19 epidemic is getting more and more complicated globally, continuing to negatively affect Vietnam's import and export activities, with total import and export turnover of during the 7 months of the year endure a drop of 1.3% to US$ 285.12 billion in comparison to the same period last year.
The country’s exports in the remaining months of the year is anticipated to face plenty of difficulties in the short run. However, the EU-Vietnam Free Trade Agreement (EVFTA) having come into effect on August will open up great opportunities for local businesses to bolster exports to the highly lucrative EU market with key items such as garments and textiles, footwear, agro-fishery products, and wood furniture.
If the pandemic is brought control in Europe along with the EVFTA into effect, Vietnamese businesses will have great advantages from reduction and elimination of tariff barriers on the EU market, thus making it easier for Vietnam to gain access to the world's second largest import market with a population of over 508 million and a GDP of roughly US$18,000 billion.
- Workshop: EVFTA - What businesses need to know
- Decree 111 / ND-CP on the Special Preferential Import and Export Tariffs for the implementation of the EVFTA Agreement for the period 2020-2022
- Vietnam’s 2020 economy likely second highest in Asia-Pacific: S&P Global Ratings
- US-Africa trade relations: Why is AGOA better than a bilateral free trade agreement?
- Thai commodities satisfy Vietnamese tastes