British Banks Are Optimistic About Vietnam'S Trade Deficit.

The Standard Chartered Bank reported in August that economic prosperity means Vietnam needs more building steel.

With Vietnam's import reduction and exports continuing to expand, the Vietnamese government is likely to achieve its annual deficit target of US $20 billion.

The deficit in the first 7 months was 15 billion dollars.

However, according to the general statistics department (GSO), in June and July, they were less than 1 billion US dollars, compared with 2 billion 700 million US dollars in January and May.

Exports in June and July exceeded US $6 billion.

GSO said that since 2006, the annual growth rate of exports in June and July was 54% and 46%, respectively, which were greater than import growth.

The Bank of England reported that the export performance of Vietnam, especially manufacturing exports, was impressive, taking into account the concerns of the global economy.

According to the GSO report, textile and clothing exports increased by 19.7% in the first 7 months, shoes increased by 18%, and computer and electrical products increased by 30%.

Higher tariffs on imported cars resulted in fewer imported cars.

But steel imports are most affected.

GSO said imports reached a peak of US $1 billion in March because of the company's inventory, which dropped to $430 million in June and July.

This alone reduces the monthly trade deficit by 600 million US dollars.

The report said that the two quarter's economic growth of 5.8% is the lowest growth rate since the first quarter of 2000. It may prompt policy makers to be more cautious about restraining growth and controlling inflation. Inflation expectations will remain above 20% before the first quarter of next year.

GSO reported that freight pport increased by 67% in the first 7 months, mainly due to the substantial increase in sea freight and the active trade in Vietnam.

The bank reported that these data indicate that interest rates raised in April and May did not have a significant impact on the economy.

The government is hesitant about raising interest rates. Banks are calling for higher interest rates and capital preservation, especially when real interest rates are still negative.