Vietnam Economy Growing Strong but Trade Deficit May Be a Concern

Vietnam’s foreign trade is growing rapidly but imports are growing faster than exports and analysts say the government should make sure an increasing deficit does not get out of hand.

Vietnam exported goods worth $1.6 billion in the first half of 1994, a 26% increase over the same period last year, according to figures recently released by the government’s General Statistical Office.

The value of imports was 30.6% higher at $1.8 billion, amounting to a $200-million deficit, which a foreign analyst based in Hanoi said could cause problems if ignored.

“They must watch to ensure the deficit doesn’t get out of hand but I wouldn’t be too worried at this stage,” he said.

This communist country, which is adopting free market economic principles, had a small trade surplus in 1992 but ran up a $300-million deficit last year on total trade of $6.3 billion.