Falling exports worry Vietnam as China pressure looms
Across all industries, Vietnam's exports in October fell $5.1 billion, around $300 million below the monthly average for the year up till now.
Professor Dao Nguyen Cat, vice-president of the Vietnam Economic Science Association, reacted to the news by saying that, although his country was not affected directly by the global financial downturn since it is not fully integrated into the global banking system, it will still suffer from what is happening around the world because exports contribute around 60% of its gross domestic product.
The United States, the European Union and Japan, all suffering in the economic downturn, are key export markets for Vietnam. As a result, exports of manufactured products such as furniture and electronic goods are likely to experience further declines.
On top of that, the Vietnamese authorities are worried about textile exports. The US and the EU are about to lift quotas on imports from China of many categories of garments and textiles. This will mean extra competition for Vietnamese producers from the beginning of 2009.
