Vietnam exports to US fall in October for third straight month

Containers stacked at Hai Phong Port, northern Vietnam’s largest port and a key maritime hub. (EPA Images pic)

HANOI: Vietnam’s exports fell in October from a month earlier, with shipments to the US dropping faster as the trade-reliant country adapts to American tariffs, according to official data released on Thursday.

The Southeast Asian nation is still in talks with Washington over a possible trade deal. In August, President Donald Trump imposed 20% tariffs on American imports of Vietnamese goods in a bid to reduce the US’ sizeable trade deficit with Vietnam.

The duties have slowed Vietnamese exports to the US, its largest foreign market, but the trade imbalance remains. For the first 10 months of the year, Vietnam has recorded a US$111 billion trade surplus with the US – pointing to another potential annual record – according to Vietnamese data, which is usually more conservative than US trade figures.

The US is not releasing trade data due to an ongoing federal government shutdown.

In October, Vietnam’s overall exports fell 1.5% to US$42.05 billion from September, while imports dropped 1% to US$39.45 billion, the country’s National Statistics Office said.

Shipments to the US fell on a monthly basis by roughly 2.2% to US$13.4 billion, according to the report – a third consecutive monthly drop – accelerating from a 1.4% fall in September.

Total exports in October were 17.5% higher than a year earlier, while imports rose 16.8% on an annual basis, the data showed, showcasing the country’s resilience thanks to multiple trade agreements with partners across the world.

Apparel down, footwear up

Mobile phone makers were the biggest losers among sectors that are most dependent on exports to the US Exports of phones to the US from Vietnam fell 15.2% in October from September, extending a months-long negative trend – even though the industry is exempt from higher US tariffs.

Samsung Electronics is among the largest exporters of phones to the US from Vietnam.

Textile and garment exports to the US fell 7% on the month while footwear shipments rose 15%, partly offsetting declining shipments in recent months. Vietnam is a major hub for Western apparel and footwear makers, including Nike and Adidas.

Vietnam’s industrial output in October rose 10.8% from a year earlier and was up 2.4% from September, but flows of foreign investment dropped by more than a quarter to US$2.5 billion from a month earlier.

However, investments that were newly agreed upon rose 24.2% to nearly US$3 billion in October, in a sign of renewed interest from foreign multinationals, on which the country’s growth is still very dependent.

Retail sales in October rose 7.2% from a year earlier, the data showed, and consumer prices were up 3.25% from a year earlier.

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