he export turnover in July 2010 has not reduced as significantly as earlier forecast in the end of the previous month, according to statistics of the general Department of Customs.

In particular, July exports reached $6.03 billion in turnover, down by 4.6 percent compared to June. Imports turnover reached nearly $7.01 billion in July, down by 0.7 percent compared to the previous month. Nevertheless, since export turnover saw larger reduction, the trade deficit of July was at about $980 million, higher than the June record low figure of $740 million.

However, July figures remains relatively good. Exports continued to exceed $6 billion, imports were over $7 billion, and trade deficit is below the $1 billion threshold. This is the third consecutive month those criteria have been maintained.

Although the trade balance has been rather stable during the recent three months, President of Central Institute for Economic Management Dr Vo Tri Thanh said trade deficit remains a matter of concern, particularly when foreign exchange reserves of Vietnam have become lower.

The value of dong is expected to be down by three to five percent against the dollar. However, the fluctuations of dong/dollar exchange rate in the recent time have led to concerns about short-term imbalances.

Regarding the import export happenings in July, there was notable reduction of 97 percent in export turnover of precious stones, precious metals and products made from them, compared to the previous month; followed by export turnover of ores and minerals (down by 62.7 percent), crude oil (down by 43 percent), and coal (down by 20.5 percent), etc.

Meanwhile, exports of some agricultural products (except cassava) continued to increase further, compared the previous month.

Regarding imports, half of the listed items have seen reduction in turnover compared to the previous month. The items that have significant declines include vehicles, components and spare parts (down by 57.1 percent), iron and steel (down by 12.4 percent), animal feed and raw materials (down by 12.2 percent), and fabric of all kinds (down by 5.1 percent), etc.

However, fertiliser imports increased by 88.8 percent, plastic materials was up by 15.7 percent; cotton of all kinds 5.5 percent; computers and electronic components 6.1 percent; and completely build up vehicles 7.7 percent, etc., more or less offset the above-listed declines in import turnover.

Generally, in the first seven months of the year, total exports reached $38.52 billion in turnover, up by 18.3 percent compared to the same period of last year, and equivalent to 63.1 percent of the yearly target. Import turnover reached nearly $45.78 billion, up by 25.7 percent compared to the same period of last year, equivalent to 61.9 percent of the yearly plan.

Thus, trade deficit to late July was $7.26 billion, equivalent to 18.8 percent of the total export turnover of the same period. This is the second consecutive month when this indicator has fallen below the 20 percent threshold approved by the congress.

Thoi Bao Kinh Te Saigon - August 18, 2010