Dong Nai faces growing trade deficit with three key asian markets

(ĐN)- Dong Nai continues to enjoy a consistent trade surplus, exporting to over 170 countries and territories. For nearly a decade, its annual surplus has steadily increased. However, despite this strong performance, the province remains dependent on three major import partners, China, Taiwan, and South Korea, from which it consistently records trade deficits.

So far in 2024, as exports have rebounded sharply, imports from these markets have surged by 12.2% to 20.3% year-on-year. The result: Dong Nai has posted a trade deficit of over USD 4 billion with these three partners alone. Most imported goods are raw materials, components, and machinery for industrial production.

Economists warn that overreliance on a few foreign markets for production inputs could expose local industries to global risks. In recent years, multinational corporations have begun reconfiguring their supply chains to avoid disruptions caused by natural disasters, geopolitical tensions, or pandemics. This shift has brought new investment flows to ASEAN countries, including Vietnam.

Dong Nai has benefited from this regional supply chain shift, boosting its role as an industrial and export hub. However, local linkages remain weak. Many domestic firms are not yet integrated into upstream supply chains, forcing manufacturers to rely heavily on imports from China, Taiwan, and South Korea.

Experts also caution against becoming a stopover for relocated Chinese factories aiming to bypass tariffs in the US-China trade war. Without stricter oversight, Vietnam risks being used for assembly and rebranding, which could damage the credibility of its exports. Strengthening supply chain transparency and encouraging domestic input production will be critical for sustainable growth.

Reported by K.M