Vietnam racks up trade surplus of US$15 billion with EU
Vietnam enjoyed a trade surplus of US$15.08 billion with the European Union during the opening eight months of the year following the enforcement of the EU-Vietnam Free Trade Agreement (EVFTA), according to the Ministry of Industry and Trade (MoIT).
Their two-way trade turnover throughout the reviewed period reached US$36.88 billion, of which exports and imports were US$25.98 billion and US$10.9 billion, up 14.1% and 16.8% respectively year on year.
July alone saw Vietnam enjoy a trade surplus of US$2.03 billion with the EU, representing an increase of 15.25% month on month.
Iron and steel exports continued to skyrocket by 77.89% compared to June, and surged roughly 3.1% year on year.
According to the MoIT’s European-American Market Department, since the enforcement of the EVFTA last year local firms have seized upon the various opportunities to enjoy incentives from the trade deal.
Data from the Import-Export Department reveal that 29.09% of the country’s total exports had used the EUR1 certificate of origin (C/O) form when being shipped to the bloc during the first half of this year.
Several key exports, including vegetables, seafood, phones and computers have now met the rule of origin, with many of these items taking full advantage of tariff preferences under the terms of the trade pact.
The Netherlands, Germany, Italy, and Belgium represent the main consumers of Vietnamese goods. As such, the export items that have recorded the highest export turnover in these markets include phones and components, computers, electronic products, shoes, machinery and equipment spare parts, textiles and garments.
With the COVID-19 pandemic being kept under control in both Bac Giang and Bac Ninh provinces which are home to phone, computer and electronics production lines, the export of these products is anticipated to gradually bounce back in the remaining months of the year.
