Group 3

Subject
1
3/10/2002
Members
• Trần Đàm Tiến Đạt

• Trịnh Minh Đức

• Bùi Minh Đức

• Nguyễn Đại Hải

• Vũ Minh Hiếu

• Đào Phúc Hưng

• Nguyễn Ngọc Duy

• Dương Thế Cảnh

What is BOP ?

The balance of payments is the

record of all international trade and
financial transactions made by a
country's residents.Between the
residents of one country and the rest
of the world, during a period of time,
usually a calendar year.
BOP structure
• Current account (CA)

• Capital and financial account (KFA)

• Official reverse transaction (ORT)

• CA + KFA = - ORT
Factors affecting the balance of payments

• The rate of consumer spending on imports

• International competitiveness.

• Exchange rate.

• Structure of economy
VietNam import from
China
Year Export  Import  Balance of Trade
2008 4.85 15.97 -11.12
2009 5.40 16.44 -11.04
2010 7.31 20.02 -12.71
2011 11.13 24.59 -13.47
2012 12.39 28.79 -16.40
2013 13.10 36.80 -23.70
2014 14.80  43.70 -28.90
2015 17.10 49.52 -32.42
2016 21.97 49.90 -27.93
2017 35.46 58.50 -23.04
2018 41.37 65.44 -24.07
2019 41.46 75.45 -33.99
2020 48.91 83.52 -34.61
 Chart Title
100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
2008 2020

Machinery, means of transport and spare parts Processed goods used as raw materials
Consumer goods Others
VietNam import from
China
Year Export  Import  Balance of Trade Import structure shows that
2008 4.85 15.97 -11.12
Vietnam's imports are
2009 5.40 16.44 -11.04
mainly for domestic
2010 7.31 20.02 -12.71
2011 11.13 24.59 -13.47
production.
2012 12.39 28.79 -16.40
Besides, the import demand
2013 13.10 36.80 -23.70 for luxury and high-class
2014 14.80  43.70 -28.90 goods also increased rapidly
2015 17.10 49.52 -32.42 during this period.
2016 21.97 49.90 -27.93 Vietnam's trade deficit and
2017 35.46 58.50 -23.04 heavy dependence on
2018 41.37 65.44 -24.07
imports from China are
2019 41.46 75.45 -33.99
inevitable
2020 48.91 83.52 -34.61
Vietnam export to china
• 2008: 4.85 In general, Vietnam's export turnover
• 2009: 5.40 to China has grown quite large and
• 2010: 7.74 sustainable, reflected in the growth
• 2011: 11.6 rate over the years.
• 2012: 12.83
With its advantages, Vietnam has
• 2013: 13.18
• 2014: 14.928 focused on exporting to China 3 main
• 2015: 16.567 groups of goods, with more than 1000
• 2016: 21.95 items:
• 2017: 35.394 Agricultural - forestry - fishery
• 2018: 41.36 products
• 2019: 41.462 Group of industrial-processing-
• 2020: 48.905 manufacturing goods
( billion USD) Raw material
100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
2009 2014 2017

Raw materials or semi-processed goods Processed and manufactured goods

Cause • Impact of trade liberalization, the structure of
import and export goods between the two
countries, the flow of foreign investment
capital from China to Vietnam, the rate of
prices between the Vietnamese dong and the
renminbi, the higher competitiveness of
Chinese goods, the participation of Chinese
contractors in major construction projects in
Vietnam, and the self-development of border
operations.
 • The huge trade deficit from China
Effect ⇒ causing an imbalance in Vietnam's
trade balance with China.
The frequent trade deficit causes the
use of foreign currencies to increase,
leading to the depletion of foreign
currency. Prolonged deficit will cause
that country to gradually increase the
amount of public debt
The trade deficit leads to an increase
in unemployment, the stock market
has sunk
Solution
• Raise the level and capacity of domestic production, towards replacing imported
and exported goods from abroad, including the Chinese market.

• Improve added value in exports, especially orient Vietnam's agricultural and

aquatic product exports to the Chinese market in the direction of official
channels, then minimize. export in the form of small quota to the Chinese
market.

• Businesses, associations as well as managers, especially localities, need to

change their approach to this market

• Strengthen the quality control stages of imported goods in accordance with

WTO regulations and measures as well as international practices to control the
quality of input goods, as well as eliminate those products have poor quality, do
not conform to Vietnamese standards
End.