Machinery, components, and raw materials account for a large portion of import turnover, indicating that businesses are preparing for a new production cycle.

In the first two months of the year, Viet Nam's trade balance recorded a deficit of nearly 3 billion USD. The majority of imports consisted of machinery, equipment, components, and raw materials for production... indicating that businesses are proactively preparing resources, ready to expand production and receive new orders from international markets.

Giovanni Group stated that, since the beginning of the year, they have imported a large quantity of machinery, equipment, and raw materials such as fabrics, leather, and accessories to prepare for the operation of their new, larger-scale factory. With a thriving domestic market and the addition of export partners, the company decided to invest in more modern machinery and technology to create a competitive advantage in technology and productivity, anticipating increased orders.

According to the General Statistics Office, imports in the first two months of the year reached over $79 billion, a sharp increase of over 26% compared to the same period last year, mainly due to a strong increase in machinery, raw materials, and components. This means that many of Viet Nam's key manufacturing and export sectors, such as textiles, footwear, and electronics, are ready for large-scale production to meet new international orders.

The majority of imports consist of machinery and raw materials, indicating that many export industries are preparing for a new growth cycle.

Ms. Do Thi Thuy Huong, Vice President and General Secretary of the Viet Nam Electronics Business Association, stated: "In the context of geopolitical conflicts and disruptions to supply chains and logistics, stockpiling goods will ensure supply chain security for the entire chain, as well as for each individual business. This year could potentially see a new peak in the export value of the entire electronics industry."

Ms. Nguyen Thu Oanh, Head of the Service and Price Statistics Department of the General Statistics Office, assessed: "The trade deficit in the first few months of the year reflects the fact that businesses are preparing raw materials and goods to serve the production process, laying the groundwork for economic growth in the following quarters. As long as global demand continues to be maintained, we believe that achieving the target of $1 trillion in import and export turnover in 2026 is feasible."

Although the short-term trade deficit is putting pressure on the exchange rate, considering that 94% of imports are production materials, proactively stockpiling raw materials and fuel from the beginning of the year will create momentum for a return to a trade surplus in the near future, helping to sustainably alleviate exchange rate pressure from domestic production. This will not only contribute to macroeconomic stability but also aim to increase Viet Nam's import and export turnover to a historical high this year.

Source: VTV