By the end of April, the balance of trade in goods of the country has been out of balance, with a trade deficit of US $ 2.74 billion, equivalent to 4.5% of export turnover. This is the trade deficit is much higher than the same period in recent years and the direct cause is the increase in domestic import enterprises. This fact calls for an analysis to understand, master the situation as well as rectify and adjust in the coming time.
Trade deficit “back”
According to the General Statistics Office, the country’s export turnover in the first four months was $ 61.3 billion, up 15.4% over the same period last year. This is a positive result, worth noting that it is significantly higher than the set target, showing the effort and overcome of the national economy in the face of many internal challenges as well as the Decline of world economic life. However, besides, trade deficit is on the rise and may cause concern and need control solution in the remaining months of the 2017 plan.
In essence, Vietnam is a developing economy associated with a particular dependence on raw materials, supplies and imported machinery and equipment. In particular, some industries regularly import raw materials and auxiliary materials for production and then return to export such as textiles and garments, footwear, electronic components, telephone sets … In other words, Is the method of processing and re-export, which is essential for many countries are in the process of economic restructuring to move toward industrialization.
With the above attributes, the import value of the group of industrial machinery and equipment in the last 4 months reached US $ 11.3 billion, an increase of nearly 39% over the same period. This reflects the fact that industrial production, especially for export, is “warming up”, as many units focus on increasing production resulting in the need for additional production lines. . On the other hand, equipment and machinery purchased is also “spent” used in the future and can not be lost so absolutely not worry. Experts comment, it is a healthy import, safe.
However, in terms of pure plan, the trade deficit this year must be controlled at 3.5% of total export turnover and thus the trade deficit of 4.5% after 4 months as Currently, the situation has reached the threshold to watch closely to adjust interest.
What solution to control?
In fact, controlling the trade deficit is not simple, because it depends on objective factors and rules. In addition, petroleum imports will continue to meet domestic demand. In short, import activity will continue, even tending to increase in the coming time and may push the trade deficit up.
Thus, if we want to control trade deficit, we only have to increase the use of domestic raw materials instead of import. Accordingly, it is necessary to increase propaganda and raise the effectiveness of the campaign “Vietnamese people give priority to using Vietnamese goods”. In fact, this is the basic solution that is directed by the Government and the Ministry of Industry and Trade and always bring positive impacts to businesses as it helps to sell products domestically. Cooperative, self-help spirit should be encouraged, but primarily through willingness to buy one another’s goods – as a top priority, to the business community.
According to Deputy Minister of Industry and Trade Do Thang Hai, boosting the consumption of goods produced by domestic enterprises, especially consumer goods, is necessary because Vietnam still imports a number of consumer goods Luxuries like phones, high-end electronics, clothing, cosmetics …
At the same time, promote the export turnover exceeded, higher than (at least equal to) import turnover. This is also a way to ensure the ideal outcome in trade, based on the balance between import and export. The expert also recommends the business community to explore and take advantage of the tax advantages offered by some free trade agreements to promote image and persuade consumers to import goods. mine. Up to now, more than 50% of enterprises have signed export contracts or in the process of negotiation with many positive signs to have orders for the third quarter to the end of the year.
Businesses themselves also need to actively promote the ability to create and maintain exports to traditional markets in addition to seeking new opportunities. For example, the Philippines is announcing its intention to import 250,000 tonnes of rice, so Vietnamese businesses need to step in quickly, look for offers, actively negotiate to sign contracts and move forward. ..
It can be said that although the economy has not gone through the first half of the year, the trade deficit was quite high, posing challenges to the direction and operation of the macro level as well as the efforts of each enterprise. industry./.
By: hanoimoi.com.vn