Over the first eleven months of the year, Vietnam's trade experienced a significant downturn, declining by 8% to a mere $620 billion.
This marked the lowest point in trade volume in three years. According to Vietnamese newspaper VN Express, this outcome directly results from factories across the country scaling back operations due to an ongoing shortage of orders.
Exports, which initially plummeted by 12% during the early months of the year, exhibited a slight improvement, dropping by a more moderate 6% to $322.5 billion.
On the import side of the trade equation, Vietnam experienced a steep 11% decline, totalling $297 billion.
VN Express reports that foreign investors bore the brunt of this drop, with their imports of materials, machinery, and goods contracting by a substantial 11.7%. Domestic firms fared slightly better, registering a 9% decrease in imports.
Vietnam's import and export markets
The United States remained Vietnam's top export destination, accounting for $88 billion in sales. This marks a decrease of 13% compared to the previous year. China followed closely behind with $56 billion in exports.
China maintained its position as Vietnam's largest import source, accounting for $100 billion in goods received. South Korea placed second with $48 billion, while ASEAN nations contributed $37.6 billion.
November figures show signs of improvement
In the meantime, Vietnam's exports rose last month, showing positive growth in shipments of computers and machines.
"November exports rose 6.7% year-on-year with shipments of computers and parts surging 20.2% while those of machines went up 5%," HSBC said in a recent report.
In addition, new areas have export growth potential for Vietnam. These include agricultural products, which continued to show strength, supporting the November improvement.
VN Express says the Ministry of Industry and Trade expects better trade figures this month. The ministry relies on "a recovery in major markets and cooling inflation in the U.S., China, and Europe" for this improvement.
