Vietnam Trade Deficit Still Under Control, SBV Says
Governor Nguyen Van Giau of the State Bank of Vietnam, the country’s central bank, has assured foreign financial institutions that the country’s forex reserves equivalent to 12 weeks are sufficient to put trade deficit under control.
Governor Giau’s move followed a concern Robert Prior-Wandesforde, HSBC’s senior economist raised about the renewed and rapid trade position deterioration as imports growth had outpaced exports.
“The trade shortfall is not too distant from the crisis levels of early 2008,” said Prior-Wandesforde. Trade deficit hit $1.9 billion in October, up from $1.8 billion in September and $1.3 billion in August.
Vietnam’s trade gap will hit $12.5 billion for the full 2009, financial analysts forecast.
However, Tai Hui, the Singapore-based head of Standarad Chartered’s South East Asian research said the country’s trade deficit was not particularly alarming at current levels, explaining oil and steel prices are unlikely to reach 2008’s levels.
The newly-added refinery of Dung Quat will also help the country reduce trade deficit, Hui added.
Giau also forecast that overseas remittances to Vietnam will be $6 billion-$6.8 billion, lower than $7.2 billion last year. (VIR, Labor)
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