China dominates Vietnam imports
In Vietnam, we have yet to come to terms with the reality that the future of many segments of our economy is becoming increasingly overly dependent on China, says the General Department of Vietnam Customs.
Foreign and local companies operating within Vietnam’s borders have imported an astronomical US$32 billion of commercial goods from China during the eight months leading up to September of 2016.
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| Photo: VNA |
To add insult to injury, says the Department, many of these imports could just as well have been produced locally.
Steel
As one example, businesses operating in the country imported 7.3 million metric tons of steel valued at US$2.9 billion while locally produced steel is plentiful.
The Vietnam Steel Association reports its members had more than sufficient capacity to fill orders for the lion’s share of the steel imported from China.
Coal
As another example, the Department says companies imported more than 9.7 million metric tons of coal, including 1.4 million tons from China, during the eight-month timeframe.
Here again, most all of the imported coal from China could have been sourced locally.
Fruit, vegetables and aquatic
Fruit, vegetables and aquatic products are key exports for which Vietnam local companies have a comparative advantage, yet companies imported US$125 million of fruit and vegetables along with US$39 million of aquatic products from China.
So the key reality is, says the Department, that regardless of what happens elsewhere with free and bilateral trade agreements with other economies, Vietnam can boost its economy efficiently just by better managing and reducing imports from China.
