Vietnam posts record 2022 trade surplus with US as China deficit rises

VIETNAM’S trade surplus with the United States widened to US$94.9 billion last year, the highest level on record, led by shipments of items such as garments, shoes, smartphones, electronics and wooden furniture, customs data showed.

The South-east Asian country has benefited from around 15 free trade agreements helping to boost its export-driven economy, which grew 8 per cent last year. Total exports in 2022 rose 10.6 per cent to US$371.85 billion.

However, economists warn Vietnam is facing headwinds, with weakening global demand already starting to impact its shipments in December, when exports fell 14 per cent from a year earlier.

Meanwhile, a trade deficit with China, which is the largest supplier of materials and equipment to Vietnam’s labour-intensive manufacturing sector, widened to a record US$60.2 billion in 2022 from US$54 billion a year earlier, according to Vietnam’s customs data released on Monday (Jan 9).

Vietnam’s imports from China last year rose 6.6 per cent to US$117.87 billion, led by products such as machinery, electronics, fabrics, smartphones and components, the data showed.

Exports to the US – Vietnam’s largest export market – rose 13.6 per cent to US$109.39 billion last year, with the trade surplus climbing from US$81 billion in 2021. REUTERS