Vietnam August exports keep strong, PM warns of mounting inflation pressure
The country relies heavily on China for materials and equipment for its industrial production
[HANOI] Vietnam’s exports in August rose 14.5 per cent from a year earlier to US$43.39 billion, government data showed on Saturday (Sep 6), the first trade figures since a tariff of 20 per cent on shipments to the United States took effect during the month.
Imports in the month rose 17.7 per cent from a year earlier to US$39.67 billion, for a trade surplus of US$3.72 billion for the month, the National Statistics Office (NSO) said in a report.
Vietnam’s biggest market, the US imposed the 20 per cent tariff from Aug 7, while transhipments from third countries through Vietnam face a levy of 40 per cent.
The South-east Asian manufacturing hub reported total trade of US$99.1 billion with the US for the period from January to August, the statistics office said.
Vietnam’s trade with China stood at US$117.9 billion during the same period, it added. Vietnam relies heavily on China for materials and equipment for its industrial production.
Global trade tension, along with geopolitical and military conflicts, is affecting production and supply chains, said Prime Minister Pham Minh Chinh.
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“Growth in domestic consumption, exports and public investment has shown signs of slowing,” Chinh told a Cabinet meeting in Hanoi, while also warning of mounting pressure on inflation and the exchange rate.
Industrial production in August rose 8.9 per cent from a year earlier, while retail sales were up 10.6 per cent, the report said. Consumer prices in August rose 3.24 per cent from a year earlier, the office said.
Vietnam is targeting economic growth this year of 8.3 to 8.5 per cent, with a target range of 4.5 to 5 per cent for inflation. “This year’s growth target ... is a difficult one, but we must reach it, however difficult it is,” Chinh added.
For the first eight months of the year, exports rose 14.8 per cent from a year earlier to US$305.96 billion, and imports were up 17.9 per cent, at US$291.97 billion, translating into a trade surplus of US$13.99 billion for the period, the NSO said.
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