Hanoi's trade deficit reaches nearly US$10 billion, while Ho Chi Minh City reaps a trade surplus of about $300 million in the first nine months of this year, statistics offices in the two cities stated.
In Hanoi, the trade deficit almost doubles the export value, the statistics office reports, adding that in the first nine months of this year, the city is expected to earn an export revenue of $5.5 billion, a year-on-year increase of 19.5 percent.
Meanwhile, the import value rises by 18.2 percent to $15.5 billion.
In September alone, Hanoi's trade gap is predicted to hit $1.08 billion, up $70 million over August. Export revenue is expected to drop 0.3 percent against the previous month to $680 million, while import turnover is expected to rise 1.3 percent to $1.76 billion.
“It is easy to understand why Hanoi has a big trade gap. It is a large developing city with a high demand for machinery, equipment, accessories and materials for construction projects," said an official from the statistics office's trade section.
She, however, added that in the first nine months of the year, huge sums are spent on imported luxury goods such as cars, wine, cigarettes and interior furnishings.
The Hanoi Statistics Office earlier forecast that the capital would suffer a trade deficit of $13.8 billion in 2010, with exports earning just $7.6 billion and imports $21.4 billion.
From January to September 2010, HCMC's import turnover is estimated to reach nearly $15.5 billion, a year-on-year increase of 12.6 percent. Its export value is predicted to reach $15.8 billion, representing a year-on-year increase of just 1 percent.
In the coming months, export turnover should rise as market demand would typically rise in the last months of the year, the city's Statistics Office stated. Although HCMC experiences a trade surplus, the office reports that exporters are encountering persistent difficulties.
Officials said the price of raw materials is increasing, which would affect exporters' competitiveness. They also said the city is suffering a shortage of skilled workers and that some industries are facing material shortages, both of which are hitting exports.
In September alone, the city's export revenue month-on-month drops 9.7 percent to $1.7 billion.
Meanwhile, the decrease in gold and crude export volumes also contributed to the fall in the city's total export value, officials said.
