Vietnam’s trade balance in October continued to have a surplus of 3 billion USD, bringing the total 10-month trade surplus to more than 24.6 billion USD, the highest in 5 years, according to the Ministry of Industry and Trade.

This data was said by the Ministry of Industry and Trade in its October industrial and trade production report. With over 24.6 billion USD, the trade surplus in the first 10 months of this year increased by more than 2.5 times compared to the same period in 2022.This is also the highest level in the same period in the past 5 years (except for 2021, the Covid impact has a trade deficit of over 1.4 billion USD).

The domestic economic sector has a trade deficit of nearly 18 billion USD, while the foreign-invested sector (including crude oil) has a trade surplus of 42.6 billion USD. “The trade surplus contributes to macro stability, ensures large balances of the economy and supports the balance of international payments,” the Ministry of Industry and Trade stated.

But unlike every year, Vietnam recorded a surplus trade balance due to a deeper decline in imports than exports. Data from the Ministry of Industry and Trade showed that imports in October increased by nearly 3%, reaching 29.3 billion USD.

The “bright spot” in imports in 10 months is that raw materials for export production increased again. In which, the group of goods for production increased by 7.2% over the same period, reaching over 26 billion USD. Import of machinery, components and electronics reached 8.2 billion USD, up more than 26% over the same period; equipment and spare parts also increased by 2.4%, reaching 3.5 billion USD.

This data shows signs of recovery in industrial production. However, accumulated 10 months of import turnover still decreased by over 12% over the same period last year, only reaching nearly 267 billion USD.

Difficulties in the export market, a decline in orders and cooling raw material prices caused imports of manufactured materials to still decrease by over 12% in the same period, reaching nearly 236 billion USD.

Difficulties in production and export, so importing Vietnamese raw materials from markets will decrease compared to 2022. China is still Vietnam’s largest import market, reaching nearly 90 billion USD, but in terms of proportion, it decreased by over 10% in the same period of 2022. Similarly, imports from South Korea reached over 43 billion USD, down approximately 19%; ASEAN market also decreased by 15%, reaching only 33.5 billion USD.

In the opposite direction, exports showed signs of recovery, when the decline narrowed, 10 months decreased by 7.1% compared to 12% in the first half of the year.

In 10 months, the reduction in export turnover of the domestic economic sector was only half that of the foreign-invested sector (including crude oil), showing efforts to maintain and expand export markets in the context of global economic difficulties. 33 items achieved export turnover of over 1 billion USD. Agricultural products, rice and fruits are a “lifesaver” for exports thanks to rising prices and market opening opportunities.

The Ministry of Industry and Trade forecasts that the last months of this year will still be difficult due to increasingly fierce strategic competition between major countries, increasing uncertainty, slow global economic recovery and prolonged Russia-Ukraine conflict, Israel and Hamas forces appear a number of new risks and challenges in global food security.

In addition to stimulating domestic consumption, the ministry said it would accelerate negotiations, sign agreements and trade commitments with potential partners (UAE, MERCOSUR) to diversify markets, products and supply chains.