Vietnam to post $26.4 bln trade deficit with China in 11 months

[TaiShang]

Vietnam is forecast to post a trade deficit of 26.4 billion U.S. dollars with China in the first 11 months of 2014, according to Vietnam's General Statistics Office on Thursday.

The figure represents a year-on-year increase of 22.1 percent, the statistics agency said in a monthly report posted on its website.

During the period, China remained the largest supplier of commodities for Vietnam with some 39.9 billion U.S. dollars worth of products, an increase of 18.9 percent year-on-year.

Vietnam is forecast to earn some 13.5 billion U.S. dollars from exports to China in the January-November period, up 13.1 percent year-on-year.

Total trade between the two countries in the 11 months is expected to amount to 53.4 billion U.S. dollars.

Vietnam's foreign trade is predicted to be some 272 billion U.S. dollars in the 11 months.

Vietnam to post $26.4 bln trade deficit with China in 11 months - Headlines, features, photo and videos from ecns.cn|china|news|chinanews|ecns|cns

***

Good, bilateral trade between the two neighbors is growing.

 

[Chinese-Dragon]

That is a huge deficit, compared to their budget.

 

[cirr]

And that's after taking into account the fact that we buy from Vietnam half of all fruits we import from ASEAN each year？

 

[dichoi]

Finding a sustainable path for Vietnam-China trade
VietNamNet tries to find the causes and identify the hidden nature of complex interactions with many factors of the imbalance trade relationship between Vietnam and China.

The trade relations between Vietnam and China is asymmetric or more clearly Vietnam is weak and pinched in many ways. The trade deficit of Vietnam is $16 billion annually, more than trade surplus that Vietnam earns from the U.S. and the EU and it is equivalent to over 10 percent of the country's GDP. However, this is only immediate disadvantage. In the long term, if this imbalance is not adjusted, Vietnam will have to pay heavier price for this asymmetric relationship.

VietNamNet held a roundtable talks with a number of researchers, scientists and consultants at home and abroad to find the causes and identify the hidden nature of this imbalance relations, through which finding clues and solutions.

Part 1: Identification from history to the present

Dr. Nguyen Nha, a well-known historian said: “In the past, Chinese dynasties considered Vietnam as their satellite. They did not want Vietnam to be strong. Surprisingly, I recently saw an internal study document for the reference of their high-ranking officials, which determines that Vietnam belongs to China!”

Vietnam is a small country next to giant China. The ancient dynasties of Vietnam had to give "tribute" to hold their territory and independence. What about the economic relationship between the two countries in the feudal time?

In fact, we had to pay tribute to them, but that was just diplomacy. We still remained total independence and autonomy.

Economically, for thousands of years we have not depended on the Chinese economy. Our feudal dynasties only paid tribute. There was no economic exchange at all!

VietNamNet: When did Vietnam begin foreign trade exchanges and how did it take place?

Dr. Nguyen Nha: Until the 17th century, western traders came to our country. Lord Trinh permitted to do trade in Pho Hien (Hung Yen province at present) in the north. In the south, foreign traders were present in Hoi An.

In the Qing Dynasty in China, many officials of the Ming fled to our country. The Nguyen Dynasty accepted them and permitted them to resettle in Bien Hoa, My Tho and Ha Tien. They lived by trade. From here, the Chinese have had a certain role in the economy of our country.

In the French colonial period, the state allowed foreign traders to do business in Vietnam, with Hang Buom Street in Hanoi and Cho Lon in Saigon as very crowded trading areas. Since then trade has been expanded with many regions and countries, including China.

VietNamNet: What time did the trade relations between Vietnam and China begin developing?

Dr. Nguyen Nha: It can be said from the 1990 Chengdu conference after the two countries normalized relations. Trade between the two countries has flourished since then.

In this relationship, China takes many advantages over Vietnam. They opened the door early and thanks to capital and technology from the U.S., the West and Japan; China has grown strongly. China has taken advantage of this to keep back and capture Vietnam’s economy.

So far, the risk that Vietnam's economy is dominated by China so that it cannot develop clearly. And, I think they have not stopped here.

Dr. Nguyen Thi Dung, Vice Chair of the Foreign Economics Faculty of the University of Foreign Trade, an expert of the Japan International Cooperation Agency (JAICA), said:

In trade relations with Vietnam, China has learned very quickly from the capitalists in the West and America in the 19th century and early 20th century to "play" with Vietnam.

Along the Vietnam-China border there are a lot of Chinese warehouses that we cannot control. Smuggled goods from China are uncontrolled. Not only goods, anything that China discharges are thrown across the border, from old technology to old and ill chickens. Chinese smuggled goods have “killed” many Vietnamese firms.

After many years of opening the economy, our country has had the goods market. But it is the market of foreign goods.

Trade relations between the two sides must achieve the goal of mutual benefit. It is dangerous if in the relations, we become the place where they throw the risks to!

VietNamNet:It will be incomplete if the trade relationships between Vietnam and China is not considered in the current international relations, especially geopolitically. There are many countries that are more developed than China. If China plays unfairly, we can trade with other countries?

Dr. Nguyen Thi Dung: The problem is not that simple! We and China are neighbors. China is growing constantly to become a superpower. Trade relations between us and them cannot be stopped unless we apply the closed-door policy. We and they are both WTO members.

About 10 years ago, the G7 conference (without China) divided Vietnam into three areas of their investment. The north belongs to Japan, the central region for the EU and the South for the US.

China joined this group late and it does not accept this order. They want to seize control of the East Sea to hold the energy resources.

Duy Chien

To be continued

 

[TaiShang]

Finding a sustainable path for Vietnam-China trade
VietNamNet tries to find the causes and identify the hidden nature of complex interactions with many factors of the imbalance trade relationship between Vietnam and China.

The trade relations between Vietnam and China is asymmetric or more clearly Vietnam is weak and pinched in many ways. The trade deficit of Vietnam is $16 billion annually, more than trade surplus that Vietnam earns from the U.S. and the EU and it is equivalent to over 10 percent of the country's GDP. However, this is only immediate disadvantage. In the long term, if this imbalance is not adjusted, Vietnam will have to pay heavier price for this asymmetric relationship.

VietNamNet held a roundtable talks with a number of researchers, scientists and consultants at home and abroad to find the causes and identify the hidden nature of this imbalance relations, through which finding clues and solutions.

Part 1: Identification from history to the present

Dr. Nguyen Nha, a well-known historian said: “In the past, Chinese dynasties considered Vietnam as their satellite. They did not want Vietnam to be strong. Surprisingly, I recently saw an internal study document for the reference of their high-ranking officials, which determines that Vietnam belongs to China!”

Vietnam is a small country next to giant China. The ancient dynasties of Vietnam had to give "tribute" to hold their territory and independence. What about the economic relationship between the two countries in the feudal time?

In fact, we had to pay tribute to them, but that was just diplomacy. We still remained total independence and autonomy.

Economically, for thousands of years we have not depended on the Chinese economy. Our feudal dynasties only paid tribute. There was no economic exchange at all!

VietNamNet: When did Vietnam begin foreign trade exchanges and how did it take place?

Dr. Nguyen Nha: Until the 17th century, western traders came to our country. Lord Trinh permitted to do trade in Pho Hien (Hung Yen province at present) in the north. In the south, foreign traders were present in Hoi An.

In the Qing Dynasty in China, many officials of the Ming fled to our country. The Nguyen Dynasty accepted them and permitted them to resettle in Bien Hoa, My Tho and Ha Tien. They lived by trade. From here, the Chinese have had a certain role in the economy of our country.

In the French colonial period, the state allowed foreign traders to do business in Vietnam, with Hang Buom Street in Hanoi and Cho Lon in Saigon as very crowded trading areas. Since then trade has been expanded with many regions and countries, including China.

VietNamNet: What time did the trade relations between Vietnam and China begin developing?

Dr. Nguyen Nha: It can be said from the 1990 Chengdu conference after the two countries normalized relations. Trade between the two countries has flourished since then.

In this relationship, China takes many advantages over Vietnam. They opened the door early and thanks to capital and technology from the U.S., the West and Japan; China has grown strongly. China has taken advantage of this to keep back and capture Vietnam’s economy.

So far, the risk that Vietnam's economy is dominated by China so that it cannot develop clearly. And, I think they have not stopped here.

Dr. Nguyen Thi Dung, Vice Chair of the Foreign Economics Faculty of the University of Foreign Trade, an expert of the Japan International Cooperation Agency (JAICA), said:

In trade relations with Vietnam, China has learned very quickly from the capitalists in the West and America in the 19th century and early 20th century to "play" with Vietnam.

Along the Vietnam-China border there are a lot of Chinese warehouses that we cannot control. Smuggled goods from China are uncontrolled. Not only goods, anything that China discharges are thrown across the border, from old technology to old and ill chickens. Chinese smuggled goods have “killed” many Vietnamese firms.

After many years of opening the economy, our country has had the goods market. But it is the market of foreign goods.

Trade relations between the two sides must achieve the goal of mutual benefit. It is dangerous if in the relations, we become the place where they throw the risks to!

VietNamNet:It will be incomplete if the trade relationships between Vietnam and China is not considered in the current international relations, especially geopolitically. There are many countries that are more developed than China. If China plays unfairly, we can trade with other countries?

Dr. Nguyen Thi Dung: The problem is not that simple! We and China are neighbors. China is growing constantly to become a superpower. Trade relations between us and them cannot be stopped unless we apply the closed-door policy. We and they are both WTO members.

About 10 years ago, the G7 conference (without China) divided Vietnam into three areas of their investment. The north belongs to Japan, the central region for the EU and the South for the US.

China joined this group late and it does not accept this order. They want to seize control of the East Sea to hold the energy resources.

Duy Chien

To be continued

Do not be too wordy.

Sign an FTA with China. End to all headaches. China will be willing to buy more agri-products from Vietnam and sell more high-end products at lower prices.

 

[terranMarine]

may the trade deficit continue to grow

 

[StarCraft_ZT]

Surprisingly, I recently saw an internal study document for the reference of their high-ranking officials, which determines that Vietnam belongs to China!”

 

[hans]

The problem of Vietnam`s deficit to China mainly due to two parts..
One is that Vietnam do need a lot of industrial parts from China.
Due to lack of industrial capacity, Vietnam has to buy from China for a lot of products..
While Vietnam can only sell agriculture products, woods, etc at low price, as China can also produce them.
Another issue is that Vietnam now exporting a lot of things to EU, US, etc..
These products are only assembled in Vietnam for cheap labor cost, with sub supply chain still in China.
Vietnam buy components from China and sell to US, EU.
That is why there is deficit to China and surplus to US, EU..

Finding a sustainable path for Vietnam-China trade
VietNamNet tries to find the causes and identify the hidden nature of complex interactions with many factors of the imbalance trade relationship between Vietnam and China.

The trade relations between Vietnam and China is asymmetric or more clearly Vietnam is weak and pinched in many ways. The trade deficit of Vietnam is $16 billion annually, more than trade surplus that Vietnam earns from the U.S. and the EU and it is equivalent to over 10 percent of the country's GDP. However, this is only immediate disadvantage. In the long term, if this imbalance is not adjusted, Vietnam will have to pay heavier price for this asymmetric relationship.

VietNamNet held a roundtable talks with a number of researchers, scientists and consultants at home and abroad to find the causes and identify the hidden nature of this imbalance relations, through which finding clues and solutions.

Part 1: Identification from history to the present

Dr. Nguyen Nha, a well-known historian said: “In the past, Chinese dynasties considered Vietnam as their satellite. They did not want Vietnam to be strong. Surprisingly, I recently saw an internal study document for the reference of their high-ranking officials, which determines that Vietnam belongs to China!”

Vietnam is a small country next to giant China. The ancient dynasties of Vietnam had to give "tribute" to hold their territory and independence. What about the economic relationship between the two countries in the feudal time?

In fact, we had to pay tribute to them, but that was just diplomacy. We still remained total independence and autonomy.

Economically, for thousands of years we have not depended on the Chinese economy. Our feudal dynasties only paid tribute. There was no economic exchange at all!

VietNamNet: When did Vietnam begin foreign trade exchanges and how did it take place?

Dr. Nguyen Nha: Until the 17th century, western traders came to our country. Lord Trinh permitted to do trade in Pho Hien (Hung Yen province at present) in the north. In the south, foreign traders were present in Hoi An.

In the Qing Dynasty in China, many officials of the Ming fled to our country. The Nguyen Dynasty accepted them and permitted them to resettle in Bien Hoa, My Tho and Ha Tien. They lived by trade. From here, the Chinese have had a certain role in the economy of our country.

In the French colonial period, the state allowed foreign traders to do business in Vietnam, with Hang Buom Street in Hanoi and Cho Lon in Saigon as very crowded trading areas. Since then trade has been expanded with many regions and countries, including China.

VietNamNet: What time did the trade relations between Vietnam and China begin developing?

Dr. Nguyen Nha: It can be said from the 1990 Chengdu conference after the two countries normalized relations. Trade between the two countries has flourished since then.

In this relationship, China takes many advantages over Vietnam. They opened the door early and thanks to capital and technology from the U.S., the West and Japan; China has grown strongly. China has taken advantage of this to keep back and capture Vietnam’s economy.

So far, the risk that Vietnam's economy is dominated by China so that it cannot develop clearly. And, I think they have not stopped here.

Dr. Nguyen Thi Dung, Vice Chair of the Foreign Economics Faculty of the University of Foreign Trade, an expert of the Japan International Cooperation Agency (JAICA), said:

In trade relations with Vietnam, China has learned very quickly from the capitalists in the West and America in the 19th century and early 20th century to "play" with Vietnam.

Along the Vietnam-China border there are a lot of Chinese warehouses that we cannot control. Smuggled goods from China are uncontrolled. Not only goods, anything that China discharges are thrown across the border, from old technology to old and ill chickens. Chinese smuggled goods have “killed” many Vietnamese firms.

After many years of opening the economy, our country has had the goods market. But it is the market of foreign goods.

Trade relations between the two sides must achieve the goal of mutual benefit. It is dangerous if in the relations, we become the place where they throw the risks to!

VietNamNet:It will be incomplete if the trade relationships between Vietnam and China is not considered in the current international relations, especially geopolitically. There are many countries that are more developed than China. If China plays unfairly, we can trade with other countries?

Dr. Nguyen Thi Dung: The problem is not that simple! We and China are neighbors. China is growing constantly to become a superpower. Trade relations between us and them cannot be stopped unless we apply the closed-door policy. We and they are both WTO members.

About 10 years ago, the G7 conference (without China) divided Vietnam into three areas of their investment. The north belongs to Japan, the central region for the EU and the South for the US.

China joined this group late and it does not accept this order. They want to seize control of the East Sea to hold the energy resources.

Duy Chien

To be continued

 

[cnleio]

LOL ... this is the real world what we living, not wishful thinking from some VN member.

Although they (Vietnamese) disseminate anti-China, announce anti-"Made in China" once and once again ... their companies & trade still can not leave China !


If Vietnam can find other nation to slove this 53.4 billion USD problem or 39.9 -13.5 = 26.4billion USD problem, then tell us VN development will get out of economy depends on China.

1. China remained the largest supplier of commodities for Vietnam with some 39.9 billion U.S. dollars worth of products
2. Vietnam is forecast to earn some 13.5 billion U.S. dollars from exports to China in the January-November period

 

[dichoi]

VN trade surplus for 2014 hits $2b
VietNamNet Bridge – Viet Nam's trade surplus in the first 11 months of 2014 has reached US$2 billion, a $100-million increase over the surplus recorded in the first ten months of the year.

A shoes assembly line at the Dong An Economic Investment and Development Company's factory in Ha Noi. Footwear is one of the leading export products of Viet Nam.

The General Statistics Office (GSO) made the announcement and predicted that Viet Nam would finish 2014 with a trade surplus and a large contribution from the foreign direct investment (FDI) sector.

GSO figures showed that the country's export revenues reached $137.33 billion, a 13.7-per cent year-on-year increase, and 67 per cent came from the FDI sector, including crude oil. The FDI sector's exports increased by 13 per cent year-on-year.

Leading exports include garments and textiles, with a turnover of $19.183 billion, an 18.2-per cent increase; phones and components, $21.681 billion, an 8.3-per cent increase; footwear products, $9.181 billion, a 23-per cent increase; and computers and electronic components, $10.259 billion, a five-per cent increase.

Products with rapid export growth this year include seafood, which increased by 20.2 per cent to reach $7.272 billion; fruits and vegetables, by 39.6 per cent to $1.35 billion; and coffee, by 34.3 per cent to $3.31 billion.

However, several traditional exports witnessed declines in either volume or value or both. Coal fell by 1.8 per cent in volume to 6.812 million tonnes and 37.9 per cent in value to $506 million. Rubber reached $1.634 billion, a 26.2-per cent decline, because of the sharp fall in world prices.

The United States was the country's leading importer, with an export value in the first 11 months of this year reaching $26.2 billion, a 21.3-per cent increase.

The country's import value reached nearly $135 billion, a 12.6-per cent year-on-year increase, with the FDI sector accounting for more than 56.8 per cent.

Viet Nam mainly imported raw materials for production such as fabrics, plastics, machines and equipment.

Worth considering is Viet Nam's trade deficit with China which, in the first 11 months of this year, reached $26.4 billion, a 22.1-per cent year-on-year increase and nearly one-fifth of the country's total import turnover.

Viet Nam's imports from China reached $40 billion or nearly 30 per cent of the country's export turnover. This high rate is a serious concern, according to the GSO.

VNS/VNN

 

[Viet]

Vietnam is forecast to post a trade deficit of 26.4 billion U.S. dollars with China in the first 11 months of 2014, according to Vietnam's General Statistics Office on Thursday.

The figure represents a year-on-year increase of 22.1 percent, the statistics agency said in a monthly report posted on its website.

During the period, China remained the largest supplier of commodities for Vietnam with some 39.9 billion U.S. dollars worth of products, an increase of 18.9 percent year-on-year.

Vietnam is forecast to earn some 13.5 billion U.S. dollars from exports to China in the January-November period, up 13.1 percent year-on-year.

Total trade between the two countries in the 11 months is expected to amount to 53.4 billion U.S. dollars.

Vietnam's foreign trade is predicted to be some 272 billion U.S. dollars in the 11 months.

Vietnam to post $26.4 bln trade deficit with China in 11 months - Headlines, features, photo and videos from ecns.cn|china|news|chinanews|ecns|cns

***

Good, bilateral trade between the two neighbors is growing.

we bought commodities for 40 billion U.S. dollars? I thought we mostly imported machines and other equippments.

 

[FairAndUnbiased]

we bought commodities for 40 billion U.S. dollars? I thought we mostly imported machines and other equippments.

commodities includes machines, equipments and parts, since the value cited matches the total value of all Vietnamese imports from China.

 

[dichoi]

mainly răw material.

 

[StarCraft_ZT]

VN trade surplus for 2014 hits $2b
VietNamNet Bridge – Viet Nam's trade surplus in the first 11 months of 2014 has reached US$2 billion, a $100-million increase over the surplus recorded in the first ten months of the year.

A shoes assembly line at the Dong An Economic Investment and Development Company's factory in Ha Noi. Footwear is one of the leading export products of Viet Nam.

The General Statistics Office (GSO) made the announcement and predicted that Viet Nam would finish 2014 with a trade surplus and a large contribution from the foreign direct investment (FDI) sector.

GSO figures showed that the country's export revenues reached $137.33 billion, a 13.7-per cent year-on-year increase, and 67 per cent came from the FDI sector, including crude oil. The FDI sector's exports increased by 13 per cent year-on-year.

Leading exports include garments and textiles, with a turnover of $19.183 billion, an 18.2-per cent increase; phones and components, $21.681 billion, an 8.3-per cent increase; footwear products, $9.181 billion, a 23-per cent increase; and computers and electronic components, $10.259 billion, a five-per cent increase.

Products with rapid export growth this year include seafood, which increased by 20.2 per cent to reach $7.272 billion; fruits and vegetables, by 39.6 per cent to $1.35 billion; and coffee, by 34.3 per cent to $3.31 billion.

However, several traditional exports witnessed declines in either volume or value or both. Coal fell by 1.8 per cent in volume to 6.812 million tonnes and 37.9 per cent in value to $506 million. Rubber reached $1.634 billion, a 26.2-per cent decline, because of the sharp fall in world prices.

The United States was the country's leading importer, with an export value in the first 11 months of this year reaching $26.2 billion, a 21.3-per cent increase.

The country's import value reached nearly $135 billion, a 12.6-per cent year-on-year increase, with the FDI sector accounting for more than 56.8 per cent.

Viet Nam mainly imported raw materials for production such as fabrics, plastics, machines and equipment.

Worth considering is Viet Nam's trade deficit with China which, in the first 11 months of this year, reached $26.4 billion, a 22.1-per cent year-on-year increase and nearly one-fifth of the country's total import turnover.

Viet Nam's imports from China reached $40 billion or nearly 30 per cent of the country's export turnover. This high rate is a serious concern, according to the GSO.

VNS/VNN

Last time I bought a pair of shoes, when I checked its inside, "made in Vietnam"

 

[Sanchez]

Border trade is significant (10-20%) in the goods exchange between Vietnam and China, that is actually benificial to both sides. Vietnam shouldn't view China as an enemy with a twisted mind about history. It's a lot easier for Vietnam to draw tourists from China than Japan.