14:07 | 24/08/2017 Trade
(VEN) - The trade deficit dropped in June and is expected to continue its decline in the remaining months of the year.
High production requirements
According to the Ministry of Industry and Trade, import turnover in the first six months of the year reached US$100.5 billion, up 24.1 percent over the same period in 2016. Meanwhile, export turnover stood at US$97.7 billion, up 18.8 percent over the same period last year. As a result, the trade deficit in the first half of the year totaled US$2.78 billion, accounting for 2.8 percent of total export turnover.
Deputy Minister of Industry and Trade Do Thang Hai says that in the early months of the year, import turnover increased rapidly in raw materials. Large corporations and groups strengthened imports of machinery and equipment serving their investment projects.
Starting in June, exports began their annual growth cycle of goods produced with the raw material imported in the first half, especially commodities, with large turnovers of furniture, textiles and footwear. An increase in the trade deficit in the first half of the year was also attributed to significant imports of domestically produced products, such as fruit and vegetables.
According to the Ministry of Industry and Trade, the trade deficit for the year is forecast to reach about US$5 billion, accounting for 2.5 percent of total export turnover, lower than the level of 3.5 percent set by the National Assembly.
To achieve the goal, the Ministry of Industry and Trade will focus on overcoming difficulties for domestic production, creating conditions for exports of agricultural products and seafood to new markets, deploying solutions to meet quality standards of importers and increase the value of export products.
In the last months of the year, the Ministry of Industry and Trade will strengthen management of export-import activities through the application of trade defense measures.
|Exports of some industrial products, such as garments and textiles, footwear and furniture, will grow in the second half of the year, while imports of machinery and equipment will gradually decline.|