Vietnam Jan-May exports down 12.3% as smartphone, garment shipments slump

VIETNAM’S exports in the first five months of this year fell more sharply than forecast, dragged by a decline in shipments of key products smartphones, electronics and garments, as weaker external demand weighs on its manufacturing-led economy.

Exports in the January-May period fell 12.3 per cent from a year earlier to US$135.22 billion, customs data showed on Friday (Jun 9). The fall is deeper than a government forecast of a decline of 11.6 per cent announced late last month.

Imports in the January-May period fell 18.4 per cent to US$125.57 billion, resulting in a trade surplus of US$9.65 billion, the Customs Department said in a report.

The large imports decline could indicate a further slowdown ahead in industrial production as businesses reduce purchases of raw materials and equipment.

Shipments of smartphones, its largest export earner, fell 19.9 per cent in the period to US$20.2 billion, the department said. Garment exports fell 15.6 per cent to US$12.6 billion.

Exports to the US, Vietnam’s largest export market, fell 21.3 per cent from a year earlier to US$36.32 billion in the five-month period, the department said.

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Exports by companies with foreign investment accounted for 73 per cent of Vietnam’s overall exports in the period.

In May, Vietnam’s exports rose just 0.6 per cent from April to US$28.04 billion, while imports were up 3.3 per cent at US$26.04 billion, the department said. REUTERS