Vietnam forecasts slower export and import growth in 2009

November 18, 2008 by SwizStick  
Filed under Education, QuickNews

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Many people commonly mistake Vietnam as the next China, a second factory to the world, when in fact Vietnam has a growing trade deficit, importing more than they export, MUCH different than China. It’s a problem that Vietnam’s government watches closely, particularly in regards to what they refer to as “luxury goods” such as cars and mobile phones, which are flooding the country as the economy booms. Despite consistently raising the import tax on automobiles and auto parts, sales continue to rise and imports along with them.

While Vietnam is forecasting lower export and import growth for 2009, it’s important to note that it’s still solidly in the double digits. However, they expect their trade deficit to slightly widen as well:

Vietnam’s trade deficit is expected to widen to US$19.9 billion next year from US$19 billion this year as growth in both imports and exports slow sharply from current rates, a government trade report said.

Hanoi has been striving to boost exports and curb the import of luxury goods such as cars and mobile phones to help limit the trade deficit to below US$20 billion.

Growth in exports is expected to slow to 18 per cent in 2009 from an estimated 32 per cent in 2008, while growth in imports is seen slowing to 15 per cent from 31.8 per cent this year.

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