Figures from China Customs General Administration show that bilateral trade revenues between Vietnam and China stood at US$6.88 billion over the first five months of this year. Of the figure, Vietnamese imports account for $5.16 billion.

That means Vietnam’s trade deficit to China was nearly $4 billion, accounting for almost all of the first half’s total trade deficit.

That’s too much.

China exports value-added products to Vietnam such as machines, materials, garments, textiles, metal and chemicals. But Vietnam exports mainly agriculture products in return.

Figures from Vietnam Textile and Apparel Association (Vitas) show that more than 30 percent of domestic garment producers’ raw materials this year, worth $1.5 billion, came from China through official channels, implying that much more had crossed the border illegally.

We all know that Chinese-made clothes are sold throughout the country, and they didn’t all clear customs cleanly.

Vu Thanh Tu Anh, a research director for the Fulbright Economics Teaching Program, said Vietnam’s heavy trade deficit with China is due to the cheapness of Chinese products.

Meanwhile, China is tightening quality control over food quality, causing more difficulties to Vietnam’s importers.

Many seafood and fruit shipments have already gotten stuck at border gates in Quang Ninh Province.

It appears that Vietnam’s trade deficit with China this year will be not much below $10 billion.

A trade deficit is normal for a developing country like Vietnam, but this growing trade deficit with China is abnormally large.

While China is setting up technical barriers to reduce Vietnamese imports, we have yet to act to protect ourselves.

Source: Thanh Nien