In the first seven months of 2022, FDI companies had a trade surplus of 18.74 billion USD

DNHN - The trade balance of products of FDI businesses achieved a surplus of 2.51 billion USD in July 2022. The trade balance of products of FDI businesses recorded a surplus of 18.74 billion USD in the first seven months of this year.

According to General Department of Customs figures, the trade balance of goods in July recorded a trade surplus of 74 million USD. The country's trade balance of goods had a trade surplus of 1.08 billion USD in the first seven months of 2022. The total import and export value of foreign direct investment (FDI) enterprises was 42.29 billion USD in the month, down 4.7% from the previous month, bringing the total import and export value of this sector for the first seven months of 2022 to 299.26 billion USD, up 15.3% (equivalent to 39.8 billion USD) from the same period in 2021.

Commodity exports of FDI enterprises were nearly 22.4 billion USD in July, down 6.5% from the previous month, bringing the export value of goods in 7 months of 2022 to nearly 159 billion USD, up 16.3% (equivalent to 22.23 billion USD) from 7 months of 2021 and accounting for 73.2% of the country's total export value.

The import value of FDI enterprises was 19.89 billion USD in July 2022, down 2.6% from the previous month, bringing the import value of this sector in the first seven months of this year to 140.26 billion USD, up 14.3% (equivalent to 17.58 billion USD) from the same period last year, accounting for 64.9% of the total import value of the country.

Thus, the trade balance of products of FDI businesses in July 2022 attained a surplus of 2.51 billion USD, with a total surplus of 18.74 billion USD in the first seven months of 2022.

Economist Le Quoc Phuong stated at the Seminar on Sustainable Export Development in the Context of Free Trade Agreements (FTAs) that exports have become a key economic development engine. Our country has come a long way. Vietnam is a global export powerhouse, ranking 24th in total exports. Exports increased by double digits in the first seven months of 2022.

According to the above statistic, export growth is substantial and extremely healthy, yet there is still an unsustainable element at work. New exports have increased in number, but not in quality; added value in exports is poor. In comparison to ASEAN nations such as Thailand, Singapore, and Indonesia, our added value is significantly lower.

Although the processing and manufacturing industries account for 86% of total exports, processing and assembly remain the most important, raw output in agriculture, forestry, and fisheries remain high, and deep processing remains restricted. We also rely too much on FDI firms, which account for three-quarters of exports; the remainder is local enterprises.

FDI accounts for more than 60% of the textile and garment, leather, and footwear industries, and over 100% of the electronics and computer sectors. These figures are heavily reliant on FDI. Even though FDI was responsible for the trade surplus, domestic companies experienced a significant trade deficit. Clearly, despite significant export accomplishments, export quality has not reached the intended level.

PV