Export-Import in May 2023: Extraordinary Growth of 5.3%

Specifically, the merchandise export turnover in May reached $29.05 billion, up 4.3% from the previous month. Of this, the domestic economic area reached $7.79 billion, up 1%; the area with foreign investment (including crude oil) reached $21.26 billion, up 5.5%. The merchandise import turnover is estimated at $26.81 billion, up 6.4% from the previous month. Of this, the domestic economic area reached $9.31 billion, up 3.8%; the area with foreign investment reached $17.5 billion, up 7.8%. Thus, the trade balance in May 2023 continues to lean towards surplus with $2.24 billion.

However, the prolonged economic decline in the first four months of 2023 has prevented the outstanding growth in May from facilitating the recovery of exports and imports. Specifically, in the first five months of 2023, the total merchandise export-import turnover is estimated at $262.54 billion, a decrease of 14.7% compared to the same period last year, with exports decreasing by 11.6% and imports decreasing by 17.9%. Vietnam still maintains a trade surplus in the first five months of the year, leaning towards exports with $9.8 billion.

Looking at the overall picture of regions in terms of exports and imports, the domestic economic area saw a more significant decline than the area with foreign investment. Regarding merchandise import turnover, the domestic economic area reached $43.95 billion (down 18.5%), while the area with foreign investment reached $82.42 billion (down 17.5%). Additionally, for merchandise export turnover, the domestic economic area reached $35.19 billion (down 13.2%), while the area with foreign investment reached $100.98 billion (down 11.1%).
Regarding exports:
In the first five months of 2023, there were 23 items with export turnover exceeding $1 billion, accounting for 87.4% of the total export turnover, including 7 items with export turnover exceeding $5 billion, accounting for 65.4%.

Some items with export value over 5 billion USD, source: Compiled

• Regarding the structure of commodity groups:

Processed industrial goods accounted for the largest proportion at 88.3% ($120.24 billion), agricultural and forestry products accounted for 7.9% ($10.79 billion), and aquatic products accounted for 2.5% ($3.37 billion).

• Regarding markets:

The United States is Vietnam's largest export market with an estimated turnover of 37.2 billion USD, followed by the European market at 12.6 billion USD, and Japan at an estimated 521 million USD.

Regarding imports:

Some items with import value over 5 billion USD, source: Compiled

• Regarding the structure of commodity groups:

The estimated production material group reached 118.31 billion USD, accounting for 93.6%. Within this, machinery, equipment, and spare parts accounted for 43.9%, raw materials accounted for 49.7%, and consumer goods accounted for 6.4%.

• Regarding markets:

China is Vietnam's largest import market with an estimated turnover of 43.4 billion USD, followed by South Korea at 10.8 billion USD, and ASEAN at 3.4 billion USD.

The total state budget revenue in May 2023 is estimated at 103.4 trillion VND. The accumulated total state budget revenue for the first 5 months of 2023 is estimated at 769.6 trillion VND, a 6% decrease compared to the same period last year. The total state budget expenditure in May 2023 is estimated at 152 trillion VND; the accumulated total for the first 5 months of 2023 is estimated at 653.1 trillion VND, a 10.9% increase compared to the same period last year.

In conclusion, although there was significant growth in exports and imports in May 2023, it has not been enough to turn Vietnam's economy from red to green. Nevertheless, this is a promising sign that the national economy is reviving after the Covid-19 pandemic.

Author: InterLOG compilation and editing