Foreign Firms Save Vietnam from Trade Imbalances: Parliamentary Commission

Tuan Minh

16:30 21/03/2016

BizLIVE - The Vietnamese parliament has highlighted the role of foreign businesses, especially Samsung, in reducing trade deficits.

Foreign Firms Save Vietnam from Trade Imbalances: Parliamentary Commission

Nguyen Van Giau, head of the National Assembly’s Economic Committee. (Photo: vov.vn)

Foreign invested enterprises (FIEs) have lent remarkable support for Vietnam to narrow trade gaps over the past five years, said Nguyen Van Giau, head of the National Assembly’s Economic Committee, at the last session of the 13th tenure on Monday.
Vietnam’s trade deficit was slashed to 1.93% of total exports in the 2011-2015 period, from 22.4% in the previous five years, thanks to the performance of FIEs, especially Samsung Electronics Vietnam (SEV).
“SEV recorded a combined trade surplus of $21.5 billion over the last three years, including $3.9 billion in 2013, $6.5 billion in 2014 and $11.1 billion in 2015, contributing greatly to macroeconomic stability,” Mr. Giau noted.
According to data of the Ministry of Planning and Investment (MPI), Vietnam’s export turnover rose 17.5% per year on average, reaching a total of $656 billion between 2011 and 2015, beating the target of 12% growth per year.
The country’s imports, meanwhile, totaled $666 billion in the period, resulting in a trade gap of $10 billion.
Sharing the same view, MPI Deputy Minister Nguyen The Phuong highly valued the role played by the foreign business community in maintaining the high growth rate of the export sector.
“The rapid growing export sector has been a key factor in mitigating the pressure on the forex rate, improving the external balance of payments, as well as preventing Vietnam’s economic growth from slowing considerably over the past years,” Mr. Phuong added.

TUAN MINH