Vietnam Exports May Post Slower Growth as Trade Tensions Rise

(Bloomberg) --

Vietnam’s exports this year may rise between 7% and 7.5% from 2018, a steep decline from the previous two years mainly because of rising global trade tensions, Hai Quan newspaper reported, citing the Ministry of Industry and Trade Ministry.

Trade tensions between the U.S. and China, Japan and South Korea, and slower economic growth in some countries reduce demand for Vietnam’s products, the newspaper cited the ministry as saying.

The warning comes after Vietnam’s economic expansion quickened in the third quarter on solid growth in exports and manufacturing. Sales overseas rose 8.2% in the first nine months of 2019 from a year earlier, while imports climbed 8.9%.

Vietnam’s 2018 exports jumped 13.3% from a year earlier, while in 2017 they increased by 21.8% , according to the Vietnam General Customs website.

Vietnam Industry and Trade Minister Tran Tuan Anh called on the ministry’s provincial units to help companies diversify export markets to cope with difficulties and increase shipments toward the end of 2019.

--With assistance from Krystal Chia.

To contact the reporter on this story: Nguyen Dieu Tu Uyen in Hanoi at uyen1@bloomberg.net

To contact the editors responsible for this story: Shamim Adam at sadam2@bloomberg.net, Stanley James

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