Vietnam exports grew 35.6% in May 2021

Vietnam‘s exports grew at a year-on-year rate of 35.6% in May, to $ 26 billion, the country’s Statistics Office reported.

Vietnam’s economy is a “socialist-oriented market economy”, as defined in the Vietnamese Constitution.

In general, it is characterized by economic dualism, which combines government planning with free market incentives.

Conversely, Vietnamese imports were for $ 28 billion in May, an advance of 56.4%, year-on-year.

Vietnam’s merchandise trade has a strong intra-industry trade component.

Electrical machinery and electronic equipment continue to make up the majority of Vietnam’s merchandise imports, accounting for 40% of total merchandise imports in 2019, according to the World Trade Organization (WTO).

As a result of Covid-19, in Vietnam, the electronics value chains have been affected by the blockages of foreign suppliers and the interruption of logistics services, which has affected both the shipment of raw materials and electronic components as well as delivery of final products to consumers.

Vietnam exports

Since the beginning of the Doi Moi era in 1986, extensive market reforms have been carried out.

However, the structural transformation of Vietnam is not yet complete and conditions of inequality remain between the state and the private sector.

Vietnam’s dualism consists of a large state sector and a private sector.

The state sector easily attracts investment, out of proportion to its productivity or the jobs it generates, compared to the private sector.

Likewise, the state sector enjoys many administrative facilities, in addition to the protection granted to them.

Also the dualism of Vietnam affects the economic development of the country in its transformation from an economy based on agriculture to an economy dominated by the manufacturing and services sectors, as observed by the lack of connection between the sector with foreign investment and the sector national economic.

Composition by merchandise trade products, by main HS Sections, 2012 and 2019

In the accumulated from January to May 2021, Vietnam’s exports totaled 130.94 billion dollars, an annual increase of 30.7%.

By contrast, Vietnamese imports totaled $ 131.31 billion, an increase of 36.4 percent.

Above all, Vietnam exports to the United States, China, Japan, South Korea, and Hong Kong.

Among others, its main export products include telephones, integrated circuits, footwear and computers.