Import restrictions on cars and phones coming soon

According to the Ministry of Industry and Trade, the trade deficit has recently reached an alarming level. Therefore, to control this situation, luxury goods with a large proportion such as cars, phones, cosmetics, foreign wine, etc. will continue to be strictly controlled.

Trade deficit is at alarming level

According to the report of the Ministry of Industry and Trade, import turnover in April is estimated at 8.7 billion USD, down 1.8% compared to March but up 30.2% compared to April 2010, of which, import of 100% domestic-owned enterprises is estimated at 4.8 billion USD, down 1.6% compared to March but up 25.6% compared to April 2010; import of foreign-invested enterprises is estimated at 3.9 billion USD, down 2.0% compared to March but up 36.4% compared to April 2010.

In the first four months, import turnover was estimated at 31.83 billion USD, up 29.1% over the same period, of which import turnover of 100% domestic-owned enterprises was estimated at 17.95 billion USD, up 24.5%; import turnover of foreign-invested enterprises was 13.88 billion USD, up 35.5%.

Meanwhile, the trade deficit has also increased sharply. In April alone, the trade deficit was estimated at about 1.4 billion USD, accounting for about 19.2% of export turnover; in the four months, it was about 4.9 billion USD, accounting for 18.2% of export turnover.

The foreign-invested enterprises had a trade surplus of over 1.3 billion USD (excluding crude oil - trade deficit of 1.15 billion USD). In addition, due to the continued strong increase in import turnover from China and ASEAN, the trade deficit from China reached nearly 4 billion USD and from ASEAN about 2.6 billion USD.

According to Mr. Le Duong Quang, Deputy Minister of Industry and Trade, with the above figures, the trade deficit is at an alarming level. Therefore, to control this situation, the Ministry of Industry and Trade needs to propose to the Government solutions to limit the import of luxury goods that account for a large proportion such as cars, mobile phones, cosmetics, and foreign wine.

According to Minister of Industry and Trade Vu Huy Hoang, although the market situation is still difficult, this is the third consecutive month that export turnover has reached over 7 billion USD/month, the highest level ever. However, we should not be subjective and satisfied with the results achieved. Because in reality, the implementation of strict and cautious policies in the monetary sector and the reduction of public investment, the suspension and postponement of unnecessary projects in the investment sector; the increase in prices of imported raw materials; and the increase in production costs have greatly affected the production and consumption of a number of industries.

From May onwards, production, export and domestic consumption activities of enterprises will face more or less obstacles due to high prices of raw materials and fuels in the world, delays in policies and impacts of the world economy, Minister of Industry and Trade Vu Huy Hoang shared.

Strengthening tightening of luxury goods imports

According to Mr. Phan Xuan Chinh, Director of the Import-Export Department, in the past four months, domestic enterprises have spent over 1.5 billion USD to import items on the list of restricted imports. Of which, about 21,000 completely built-up cars were imported, equivalent to 400 million USD; over 400,000 mobile phones of all kinds, worth over 10 million USD...

According to Mr. Chinh, the reason for the high trade deficit is that the Vietnamese currency has appreciated by 1.2% against the USD, while the exchange rate has also decreased from the ceiling of 20,900 VND/USD to 20,650 VND/USD. Thus, with 1 million USD of exported goods, the enterprise loses about 250 million VND (of course, this only happens in a short cycle).

Along with that, access to foreign currency is also more favorable, which is creating conditions for the import of consumer goods, but this also creates pressure on trade deficit from this group of goods in the coming time.

Faced with the above situation, Minister of Industry and Trade Vu Huy Hoang requested that the Import-Export Department take more specific measures to manage the five items that the Government requested to consider, such as cars, mobile phones, luxury goods, cosmetics, foreign wines, etc., in accordance with the Prime Minister's direction that administrative measures should be taken to limit imports in order to create changes from May and stabilize firmly in the following months. Resolutely control the trade deficit to no more than 16%.

Along with that, businesses must be proactive and flexible in regulating supply and demand and stabilizing the market; strengthen inspection and supervision of the implementation of regulations on price registration and declaration; strictly handle acts of speculation, hoarding, price increase, trade fraud, strictly control the quality and food safety of goods circulating on the market; continue to develop distribution networks, retail systems of goods and services; continue to implement domestic trade promotion programs, bring Vietnamese goods to rural areas and industrial parks for sale to contribute to stabilizing the market, Minister of Industry and Trade Vu Huy Hoang directed.

In addition, Minister of Industry and Trade Vu Huy Hoang also requested to review investment programs and projects; develop principles and procedures for controlling goods, materials and equipment of investment projects funded by the state budget; increase the use of domestically produced machinery, equipment, materials and raw materials; rearrange projects and spending tasks to save 10% of regular expenses.

In particular, Vietnam Electricity Group will not reduce electricity, especially electricity for production according to the Prime Minister's direction, and at the same time, have a specific plan to mobilize the capacity of power plants, meeting the maximum demand for electricity load in this year's dry season, said Minister of Industry and Trade Vu Huy Hoang.

According to VnMedia