Gold exports helped decrease May trade deficit

VietNamNet Bridge – The export of some 20 tons of gold played a very important role in helping curb the trade deficit in May to the lowest level so far in 2010.

Gold exports have, once again, helped change the trade balance, making the export turnover in May increase by 14.4 percent over the previous month, thus helping narrow the excess of imports over exports.

On May 25, the General Statistics Office (GSO) announced the figures on exports in May and the first five months of 2010. There is no difference between GSO figures and ones released by the Ministry of Industry and Trade on May 21.

GSO has estimated that the total export turnover for May was $6.1 billion, an increase of 14.4 percent over April. Meanwhile, the import turnover was $6.85 billion, an increase of 5.5 percent over the previous month.

As such, the export turnover in the first five months of the year would reach $25.83 billion, an increase of $12.6 billion in comparison with the same period of 2009. Meanwhile, the total import turnover in the first five months of the year reached $31.2 billion, up by 29.8 percent in comparison with the same period of last year. The trade deficit was $5.342 billion, or 20.72 percent of the export turnover.

All the figures show the considerable improvement in the trade scale and foreign trade balance. The figures have made people optimistic about the possibility of curbing the trade deficit at 20 percent of the export turnover, the level approved by the National Assembly.

Economists have pointed out that the vigorous increase in the export turnover was brought about by the export of precious metal and stones.

From the beginning of the year to April 2010, the export turnover of this group of products was just tens of millions of dollars. Meanwhile, the export turnover of precious metal and stones jumped to $800 million, accounting for nearly 90 percent of the total export turnover of these products ($906 million).

The economic analysts agreed that it was the export of precious metal and stones that helped curb the trade deficit in May at $750 million, the lowest level since the beginning of the year.

Thoi bao Kinh te Vietnam has quoted sources stating that some 20 tons of gold were exported in May, which brought an export turnover of $750 million. Gold was exported at the time, when the domestic price was lower than the world’s price, especially in the first half of May.

According to the General Department of Customs, in the first half of May, the export turnover of precious stones, metals and products was $517 million.

As such, if not counting gold exports, the export turnover of Vietnam in May would be $5.35 billion only, not much higher than that of April ($5.33 billion).

In related news, the gold price on the morning of May 27 decreased significantly from yesterday by 30,000-50,000 dong per tael. At 9.30 am, the price of SJC gold was quoted at 27.87-27.95 million dong per tael (purchase and sale). Meanwhile, the world’s gold price last night increased by $15 per ounce.

Source: Thoi bao Kinh te Vietnam, VietNamNet