10-10-2023 (HANOI) Vietnam’s exports have experienced an 8.5% decline in the first nine months of the year, reaching a total of $258.97 billion, according to data from the government’s Customs Department. This slump is attributed to the continued weak external demand that has been placing pressure on Vietnam’s economy, which is primarily driven by manufacturing.
In the same period, imports also saw a decline of 14%, amounting to $237.33 billion. These figures have contributed to a trade surplus of $21.64 billion. Moreover, in September, exports fell by 6.3% compared to August, totaling $30.68 billion, while imports dropped by 2.9% to $28.48 billion.
Among the key export items affected, smartphones, which are Vietnam’s top export commodity, reported a 13.7% decrease in the first nine months, with exports amounting to $38.92 billion. Similarly, the garment sector saw a 13.6% decrease, with total shipments of $25.10 billion.
This subdued demand in Vietnam’s exports aligns with trends in other export-driven economies in the region. Consequently, it has led economists to revise their growth forecasts for Vietnam, which reported a GDP growth of 5.33% in the third quarter of this year. This figure is significantly lower than the growth of 13.71% during the same period in 2022 and falls short of the full-year target of 6.5%.
The International Monetary Fund (IMF) had forecasted growth of 4.7% for Vietnam in the current year. Meanwhile, the Asian Development Bank (ADB) recently revised its forecast for Vietnam’s growth to 5.8%, down from the earlier prediction of 6.5% made in April. Despite the adjustments, Vietnam continues to be one of the fastest-growing countries in Southeast Asia.
