World Bank: Vietnam’s trade balance deficit increases in August

The Samsung Company’s cafeteria is made of partitions to ensure isolation and disease prevention

The international financial institution said that among the main export items, furniture and footwear were hardest hit (down 38% and 26% respectively year-on-year), followed by computers and electronic products (down 11.9%), textiles (down 9%).

However, according to the World Bank, phone exports are still up 10% year-on-year, “reflecting the fact that phone production is mainly concentrated in the northern provinces, where the fourth outbreak controlled more successfully.”

Vietnam earlier this month reported a trade deficit of $1.3 billion in August and in the first 8 months of this year, the trade deficit was $3.71 billion.

The Ministry of Industry and Trade added in the report on industrial production and trade activities in August and May 8, 2021 that “in August 2021, the fourth COVID-19 outbreak still develops complicatedly, causing many provinces and cities across the country to continue to implement social distancing, which has negatively affected import and export activities.”

According to the World Bank, in the coming time, the overall outcome of the economy in 2021 “will depend mainly on the ability of the government to effectively control the ongoing epidemic in September, so that economic activities can return in the fourth quarter.”

The government priority is to accelerate the vaccination campaign to cover at least 70% of the adult population. The government needs to use fiscal policy to boost domestic demand in the short term, by accelerating the disbursement of public investment and continuing to provide income support to affected households to help recover private consumption,” the World Bank wrote in its Vietnam macroeconomic update.

In addition, the financial institution believes that supporting businesses, especially small-scale business households, “is also a way to help boost economic activities and create jobs” and that “because the budget will increase while revenue will continue to be affected in the short term, so it is necessary to continue to carefully monitor the fiscal balance.” (Translated)


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