Trade gap narrowed to curb inflation

17:10' 04/05/2008 (GMT+7)
The Ministry of Finance reported that, in first four months, the excess of import over export reached US $11.1 billion, equivalent to 60.8% of export turnover.

In his message on dealing with difficulties and obtaining sustainable socio-economic development, the PM emphasized that “the trade balance is a very important macro index. Trade deficit which increased in 2007 and kept going up in the first quarter of this year is threatening the macro-economic balance. This problem must be settled through boosting export and controlling import.”

To realise the PM’s directions, some technical barriers have been lifted to reduce the trade deficit. Export tax rate of minerals has been readjusted to control the export of raw materials: coal raised from 10% up to 15%, crude oil to 8%, pure and raw iron-ore to 20%. Import tax and special consumption tax have been raised for some luxury products, including CBU automobiles, spare parts, and electronic products.

Machinery and equipment continue to be imported to serve domestic production

In order to guarantee capital resources for producers and traders of exports, the State Bank confirmed, the credit structure has been readjusted towards increasing loans for effective projects, export and agricultural activities, rural areas, poor households and social policy-beneficiaries.

It was reported that the export turnover in the first four months was US $18.260 billion, up 27.6% as compared to the same period last year. Increases were seen in the turnover of most of exports in comparison with the same period of 2007, such as rice up 72.7%, plastic products 34.1%, tea 34%, textiles 24.5%, rubber 23.7%, wood furniture 22.5 %, and aqua-products 13.6%.

The April import turnover went down 2.8% against March. It was estimated to reach US $29.360 billion in the first four months, up 71% compared to the same period in 2007. The excess of import over export in this period was US $11.1 billion, equivalent to 60.8% of the export turnover.