- Weak imports drove trade surplus to record high. According to data from Vietnam Customs, in H1 2023, Vietnam’s exports declined 12.0% YoY to USD164.7bn while imports dropped 18.4% YoY to USD151.8bn, leading to a trade surplus of USD12.8bn (which increased to USD13.2bn as of July 15, 2023). (Figures 1-4).

- Exports of almost all categories dropped in H1 2023, especially exports of phones & spare parts (USD24.2bn; -18.2% YoY), textiles & footwear (USD28.9bn; -16.9% YoY), and rubber & wood (USD10.8bn; -21.6% YoY). In contrast, exports of vehicles & parts surged 15.7% YoY to USD6.7bn. Exports of food & agriculture were nearly unchanged (USD15.3bn; -0.9% YoY), which was mainly due to strong increases in exports of fruits & vegetables (USD2.7bn; +60.1% YoY) and rice (USD2.3bn; +23.2% YoY) thanks to rising demand from China. (Figures 5-8)

- Exports were mainly dragged by weak demand from the US. Exports to the US, which is Vietnam’s largest export market (accounting for nearly 27% of total exports), dropped 22.1% YoY to USD44.4bn. Textiles & footwear, which account for around 28% of total exports to the US, plunged 28.4% YoY to USD11.2bn. Most other key export categories to the US plummeted by 20%-40%, but exports of PCs & electronics inched up 1.2% YoY to USD7.8bn. Furthermore, exports to other key markets such as the EU, ASEAN countries and South Korea declined by around 9%-10% YoY. (Figures 9-15)

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