Vietnam to Spend US$36Bln on Imports This Year

Vietnam to Spend US$36Bln on Imports This Year

Vietnam will spend a total of US$36 billion on imports this year, up US$4.5 billion or 14 per cent against 2004 in order to serve local production and consumption, according to the Ministry of Trade.

The spending will bring the country's total bill for imports in the 2001-05 period to US$117.8 billion, or a 15 per cent increase annually, the ministry said.

The ministry forecasted Vietnam’s trade deficit to be US$5.5 billion in 2005, accounting for 18 per cent of the country’s total export earnings in the year.

This year the country would give priority to importing machinery and equipment for local production expansion rather than other luxury consumer goods.

The country will also impose import quotas on seven items in order to restrict the purchase of such products from abroad and encourage local production, the ministry added. These items include tobacco, salt, raw cotton, uncondensed milk, corns, and poultry eggs.

Vietnam's import spending hit US$31.5 billion last year, a rise of 25 per cent from 2003. Items that cost the country the most were machinery and equipment (US$5.12 billion), petroleum products (US$3.57 billion), steel and iron (US$2.51 billion), and materials for garment, textile and shoe industries (US$2.22 billion).

• (Vietnam Economic Times)