Asia has stayed firm as Vietnam's largest trading continental partner.
Trade value between Vietnam and Asian countries increased 9.1% year-on-year to $195.78 billion in the 11- month period, accounting for 65.4% of the country’s total trade turnover in the period.
Phones and spare parts remain the Southeast Asian country’s largest export staple when bringing $28.44 billion in the period, up 29.5% year-on-year. The EU was the largest buyer of Made-in-Vietnam phones, with a value of $9.48 billion, up 19.2% year-on-year, followed by the United Arab Emirates with $4.26 billion, and the UK with $1.58 billion.
On the import side, Vietnam spent the most on buying machinery, equipment and spare parts, with the import value rising 24.7% year-on-year to $25.11 billion. Of the total, foreign-invested enterprises disbursed $15.67 billion, up 28.9% year-on-year.
China continued to be the largest provider of this goods category for Vietnam, with a value of $8.17 billion. Notably, imports of machinery, equipment and spare parts soared 64.8% year-on-year to $4.68 billion.
Vietnam posted a trade surplus of $263 million in November, the fourth month of surplus in 2015, helping narrow the country’s trade shortfall to $2.87 billion in the 11-month period.
“Since this represents investment aimed to build out production capacity, we are not concerned about the rise per se. Machinery imports have indeed moved in tandem with implemented FDI,” the report added.
In its monthly “Vietnam at a glance” report, HSBC
said that the good news is that a significant portion of the 13.7% YTD year-on-year increase in imports is associated with demand for capital equipment. Machinery imports, for example, have remained robust in 2015 and are on track to expand at close to last year’s 25% y-o-y pace.