Vietnam - Economic overview in the 1st quarter 2023

According to the assessment of the President of Global Statistics, “Domestic and socio-economic in the first quarter of 2023, our country achieved positive results in the context of the world economy’s uncertainties, affirming the management policy of the country. Management and administration of the Government, the Prime Minister, ministries, universities and localities have gradually brought into full play the effectiveness.”. Vietnam’s economic situation in the first quarter of 2023: GDP increased by 3.32% over the same period last year, only higher than the growth rate of 3.21% in the first quarter of 2020 in the period 2011-2023; CPI increased by 4.18% over the same period last year; core inflation increased by 5.01%; IIP decreased by 2.2% over the same period last year.

According to the Ministry of Industry and Trade, in the first quarter of 2023, there were two Tet holidays, which resulted in a small number of working days, along with a decrease in export orders. So the total import-export turnover was estimated at 154.27 billion USD, down 13.3% over the same period last year (the same period increased by 15%), in which, exports were estimated at US$ 79.2 billion, down 11.9% (up 14.4% in the same period); import was estimated at 75.1 billion USD, down 14.7% over the same period (increased 15.6% in the same period).

       Export turnover of goods was estimated at 79.17 billion USD, down 11.9% over the same period, of which, the domestic business sector decreased more sharply (down 17.4%) compared to the FDI sector. foreign investment (10% reduction). This shows the difficulties of domestic enterprises in restoring production and business and boosting exports.

Processed industrial goods accounted for a high proportion of export turnover accounting for 88.7%, down 12.3% over the same period last year. Ranked second is agricultural and forestry products accounting for 7.7%, down 1.2% over the same period last year. Next, seafood accounted for 2.3%, down 29% over the same period last year. And finally, fuels and minerals accounted for 1.3%, up 2.5% over the same period last year. The United States is Vietnam’s largest export market with a turnover of 20.57 billion USD, accounting for 26% of total export turnover and down 21.6% over the same period last year.

In the first quarter of 2023, the import turnover of goods was estimated at USD 75.1 billion, down 14.7% over the same period last year (increasing by 15.6%). 26.03 billion USD, down 13.3% over the same period; FDI sector was estimated at 49.07 billion USD, down 15.4%.

Imports of production materials accounted for 93.5%, down 15% over the same period last year. And consumer goods accounted for 6.5% of import turnover, down 8.9% over the same period last year. China is Vietnam’s largest import market with an estimated turnover of 23.6 billion USD, down 14.6% over the same period last year.

In the first quarter of 2023, freight transportation was estimated at 549.8 million tons of transported goods, up 16.2% over the same period last year and 117.4 billion tons-kilometers in circulation, up 21.9%.

Cargo transport by sea led in terms of growth rate with an increase of 10.6%, inland waterways increased by 40.1%, by sea by more than 18.9% over the same period last year. Particularly, the air route decreased by 10.2%, the railway decreased by 28.2% over the same period last year.

Generally accumulated in the first quarter of 2023, the trade balance of goods is estimated to have a trade surplus of 4.07 billion USD (the same period last year, the trade surplus is 1.9 billion USD).

Source: VNEconomy

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