Vietnam August Exports Decline: On Tuesday, the General Statistics Office (GSO) reported that Vietnam’s exports declined 7.6% year over year in August. Exports have fallen for six months. This happens when the global economy is struggling, as it is now. This crisis reveals how much pressure a global economy that relies on foreign demand has been under.
National industrial output rose 2.6% in August. This is the second month it’s lifted. Vietnam’s manufacturing industry is vital to the Asian economy and a major distribution hub for electrical and textile companies.
According to GSO figures, imports declined 8.3% in August, resulting in a $3.82 billion trade balance. Month-long costs were $28.55 billion. Despite the State Bank of Vietnam (SBV)’s four policy rate reductions this year, poor global demand and US Federal Reserve monetary tightening are holding back Vietnam’s economy.
The General Services Organization (GSO) says factory measures are on track, even though industrial output fell 0.4% from January to August compared to last year. This is because the GSO believes the manufacturing steps are correct. Recently, “the global economic headwinds we faced earlier this year have hurt domestic industrial output,” adds the GSO. August starts a nice trend.
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Due to financial constraints, firms have slashed tens of thousands of employment. This prevents certain businesses from getting bank loans to expand. Because of this, loan growth dropped to a pathetic 4.3% at the end of July, about half the rate of previous year.
In the first ten months, exports fell 10% to $227.71 billion and imports 16.2% to $207.52 billion. Thus, the trade balance was likely $20.19 billion. To clarify, August exports totaled $32.37 billion.
US and EU exports declined 19.1% and 8.3%, respectively. Its largest buyers are the US and EU. Vietnam’s exports, telephones, fell 15.4%. Shoes and clothing shipped dropped 15% and 17.6%, respectively.
Given the downturn, it’s amazing that retail sales grew 10% from January to August this year compared to previous year. Consumer prices rose 7.6% from August last year to August this year.
The majority of cellphones were for Samsung. The lowest smartphone production ever was 119.9 million units, down 17.7%. The amount of shoes created declined 4.3% and clothing made 5.8% during the same period.
Oxford Economics said on Tuesday that the economy’s uncertainty could prompt the SBV to drop its policy interest rate by 50 basis points by year’s end to support growth. A Tuesday study presented these thoughts.
Our Reader’s Queries
What is the trend in Vietnam exports?
Vietnam’s exports surged to 32.91 USD Billion in December 2023, up from 14.66 USD Billion in November of the same year. This marks a significant increase from the country’s average export value of 10.18 USD Billion from 1990 to 2023. Vietnam’s highest recorded export value was 34.92 USD Billion in August 2022, while its lowest was 0.54 USD Billion in February 1997.
What are 3 major exports in Vietnam?
Vietnam’s top exports for 2022 include phones and accessories, computers and electronic products, machinery and equipment, textiles, and footwear. These products generated $57.99 billion, $55.54 billion, $45.75 billion, $37.57 billion, and $23.90 billion respectively.
Is Vietnam in a trade surplus or deficit?
Vietnam’s trade balance remained in the black for the first 11 months of 2021, with a surplus of 25.83 billion U.S. dollars, as per the latest data from the General Statistics Office.
Will Vietnam surpass Thailand?
Vietnam is set to become a major player in the global economy by 2038, with an expected GDP of 1,559 billion USD. This will see the country rise to the 21st position, surpassing other economies in the ASEAN region such as Thailand (1,313 billion USD) and Singapore (896 billion USD), as well as the Philippines (1,536 billion USD). Vietnam will join the group of 25 largest economies in the world, cementing its position as a key player in the global marketplace.