~ Le Viêt Nam, aujourd'hui. ~
The Vietnam News

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[Year 2000]
[Year 2001]

Vietnamese economy slumps

HANOI - Vietnamese exports are set to post a turnover of US$15.6 billion this year for a year-on-year increase of just 8 percent against the 16 percent initially targeted by the government. Latest figures from the General Statistics Office offer further evidence that the shadows cast on the Vietnamese economy by global economic gloom are likely to linger. Based on the economy's performance until October, the figures show no sign of impending change in the current trend of plunging export values despite increased volume.

Trade deficit is expected to fall to $400 million by the end of this year, marking a fall of more than 50 percent against last year's $892 million, as imports are set to rise by just 2.3 percent. Exports from January to October rose by 7.3 percent to $12.710 billion over last year, while imports increased by 2.8 percent to about $13 billion. Exports by the domestic business sector increased by 10.7 percent to almost $7 billion, 7.3 percent more than the FDI sector, that had a turnover of $5.7 billion in the same period for a 3.3 percent increase.

Seafood exports increased by 30.4 percent to 1.52 billion, textiles rose 8.6 percent to US$1.7 billion, while footwear grew 1 percent to $1.2 billion. Vegetables and fruits have posted an impressive 54.5 percent growth for US$262 million, while coal exports increased by 22.2 percent for a volume of 3.34 million tons. Exports of crude oil, electronics and computers, however, declined in value. The country's biggest foreign exchange earner, crude oil, fell 2 percent to $2.8 billion despite an increase in volume of 13 percent.

Falling prices in the world market have also affected Vietnamese agricultural sector excluding vegetables and fruits. Export dampeners were rice (down 6.1 percent), rubber (2.3 percent), tea (8.2 percent), peanuts (2 percent), pepper (38.6 percent) and cashew nuts (4.2 percent). Coffee fared the worst, plunging 17.8 percent in value to $337 million despite an increase of 41.5 percent in volume. Aggregate imports in the first 10 months of the year increased 2.8 percent to $13 billion. The biggest increases were recorded by automobile imports, which soared 90 percent to $334 million; raw material for the garment, textile and leather industries, up 25 percent; and iron and steel, 16 percent.

Imports by domestic firms accounted for more than $9.1 billion, representing an increase of 0.3 percent, while that by foreign-invested enterprises was up 9.1 percent at $3.8 billion. As many as 39,600 automobiles were imported, while motorbike imports were 1.8 million units, 7.8 percent lower than the same period last year. Petroleum imports declined by 4.6 percent; plastic by 2.1 percent; fertilizer by 35 percent and cloth by 19.5 percent.

Asia Times - November 2nd, 2001.