Vietnam gains US$4 billion trade surplus with EU in two months
March 7, 2019
Europe has emerged as a potential market for an array of Vietnamese products, including garments and textiles, footwear, wooden items.
The General Statistics Office of Vietnam reported that exports to the EU edged up 1.2 per cent on year to US$6.3 billion during the two-month period while imports from the block enjoyed a dramatic surge of 15.9 per cent to US$2.2 billion, therefore resulting in a trade surplus of US$4.1 billion for the Southeast Asian country.
During January, Vietnam obtained a trade surplus of US$2.5 billion with the EU as the nation earned US$3.77 billion from exports while imports from the block only reached US$1.26 billion. Notably, Vietnam recorded trade surpluses with a number of EU member states in January, including the UK, Austria, Belgium, Spain, the Netherlands, France, and Italy.
Hoang Quoc Vuong, Deputy Minister of Industry and Trade, valued the European region as a significant market for Vietnam, noting that the country has always given priority to increasing co-operation with partners on the continent.
Europe has emerged as a potential market for an array of Vietnamese products, including tropical fruits, garments and textiles, footwear, wooden items, and telephones. Simultaneously, Vietnam could potentially serve as a bridge helping to accelerate the access of European firms and their goods to the wider Southeast Asian region.
Another facilitating factor is that Vietnam has signed and put into force a free trade agreement (FTA) with the Eurasian Economic Union while finalizing negotiations on the much-anticipated EU-Vietnam Free Trade Agreement. Vietnam is also maintaining efforts to complete negotiations on an FTA with the European Free Trade Association.
With several trade deals pending, they are expected to further leverage Vietnam’s trading position with European partners once they come into force.
Vietnam has so far established 23 partnerships through intergovernmental committees, joint committees, and bilateral policy consultations with European countries. These partnerships have helped to further bolster bilateral co-operation in trade and investment as well as giving the ability to promptly ease difficulties and barriers facing enterprises from both sides.
Statistics released by the General Department of Vietnam Customs indicate that bilateral trade between Vietnam and Europe swelled to US$62.11 billion last year. Of which, Vietnam raked in US$44.93 billion from exports to Europe while recording a trade surplus of US$27.75 billion, hence helping to boost the country’s trade balance.
Vietnam is now home to 3,300 projects invested by European enterprises, with a combined investment capital of nearly US$50 billion.