Shadowing Practice: The Point 2: Securing sustainable trade: Beyond the deficit | Vietnam Today - Learn English Speaking with Video

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Vietnam's total trade approached $660 billion in the first seven months of 2026, up 28% year-on-year.

However, its trade balance has swung sharply into a deficit of over $20 billion,

reversing a $10.3 billion surplus recorded in the same period last year.

According to Vietnam Customs data, the vast majority of the nearly US$88 billion increase in imports was spent on manufacturing inputs.

Together, electronics and machinery accounted for over 70 percent, the total increase.

Trade data showed that the current deficit is driven primarily by production inputs.

While the foreign invested sector maintained a surplus of nearly US$8 billion,

domestic enterprises posted a deficit of US$28.5 billion, exceeding the country's over a trade shortfall.

With every additional billion U.S dollars in imports estimated to knock 0.17 percentage points of GDP growth,

standing Deputy Prime Minister Phạm Sà Túc has ordered an urgent review of key sectors to safeguard Vietnam's double-digit economic growth target.

To help us better understand the dynamics behind Vietnam's trade deficit

and explore ways to restore the trade balance and expand export markets, Our reporter Ngoc Trâm spoke with Mr Nguyễn Hải Minh,

Vice Chairman of the European Chamber of Commerce in Vietnam.

Thank you so much for joining Vietnam today on this segment.

First of all, in the first seven months of 2026, Vietnam recorded a trade deficit of more than 20 billion US dollars, marking a sharp reversal from last year's surplus.

So what are the key drivers behind this shift and how do you assess its broader impact on the economy?

I think the number itself is not yet a problem.

We have trade deficit, but we need to see where the import is coming from and what is it used for.

As I understand, the import is mostly for equipment and for materials, right?

So it's making up 94% of the imports and only 6%,

very tiny part is for consumption.

So this is positive.

If the whole machinery equipment or material is later on used for production and even for exports.

And if you look at the last year investment registration, Vietnam got a record high year, right?

So now it's the time for disbursement.

And for disbursement, companies need to invest, they need to import, they need to build up factories.

So we need to monitor maybe in the next few months

and see if all this import is utilized in the next production cycle.

And it will reflect in the export of Vietnam or not.

To control the deficit sustainably, Vietnam is focusing on developing domestic supporting industries and easing compliance burdens.

What can Vietnam do to help local suppliers manufacture more components domestically and rely less on imports?

I think the matter here is not about controlling imports, right?

Import is not bad.

For export or for doing business, you need something that you cannot make within the country, right?

So import is good.

But no matter how much you are importing into the country, you always have to strengthen the localization.

In the past, Vietnam has done a lot to attract FDI.

But now is the time for FDI to work together with Vietnamese companies

and also to help enhance the capabilities of Vietnamese companies.

The first thing to do is to lift up the capabilities and the R&D capabilities of local companies themselves.

And the second thing is for FDI companies to support local companies,

helping them in R&D, and that's something that the Vietnamese government is doing already.

For Vietnamese people who have worked in big companies, for example like Samsung, when they get out,

they have knowledge, they have experience and they will be much helpful in other companies

or even their own companies to be suppliers of big foreign companies in the future.

Beyond controlling imports, accelerating high-tech exports remains the long-term solution.

Let's explore how homegrown innovators are breaking into global supply chains and what economists say is needed to sustain that progress.

For this manufacturer, the breakthrough lies in designing and manufacturing complete rapid freezing systems from the ground up,

capable of lowering the temperatures of fresh seafood and agricultural produce to minus 40 degrees Celsius in around one hour.

The system helps preserve their natural freshness and nutritional value.

After initial shipments to Laos and the Dominican Republic, the enterprise is now upgrading its standards and to more demanding markets,

particularly Japan, to help local firms expand their global reach.

Targeted government support is essential.

like to help the company and to connect the companies in Japan

and to organize the companies to connect and sell the products." According to Vietnam Customs data,

foreign-invested enterprises account for roughly 80% of Vietnam's total exports, leaving domestic firms with just 20%.

While FDI continues to drive headline numbers, experts say the domestic sector has significant untapped potential.

to increase the demand for the export of the foreign industry.

This is a plan that we have to develop the products

that we have made from Vietnam and use the knowledge and the materials of Vietnam.

I think the key is for Vietnam to continue to focus on what it does well

and continue to focus on maintaining an open, predictable market environment here, a regulatory environment that is attractive for foreign investors.

According to the WTO, Vietnam ranked 18th among the world's top 30 exporters in 2025, with exports exceeding $470 billion.

However, sustaining this momentum requires domestic enterprises to accelerate its growth and increase their share of the country's exports.

to ensure that the export is strong and stable.

To realize this vision, the government is intensifying targeted support,

providing dedicated export credit, strengthening trade promotion, and accelerating institutional reforms.

Under a directive issued on August 20, standing deputy Prime Minister Pham Gia Tuk instructed ministries to fast-track FTA negotiations,

starting with Mercosur, while stepping up efforts to expand into halal, Latin American, and African markets.

With decisive policy measures to cut red tape, manage trade balance, and support the development of homegrown technologies,

Vietnamese enterprises are making strides to increase their export share, supporting the nation's tribe for the double-digit growth in 2026.

As Vietnam aims to rank among the top 30 exporting nations by 2030,

what key actions are required to drive sustainable export growth and maintain a stable trade balance?

If you talk about sustainability, you need a sustainable ecosystem, right?

So to export, you need good products, but good products, no need to be cheap products.

It cannot be cheap products.

Pricing is one thing, but the other criteria is whether you meet the requirements of the importing countries.

And now we are talking about sustainable development criteria, right?

Whether it's green enough, where's the material coming from, right?

Or the energy you use to make the goods.

So all these things Vietnamese companies have to meet in order to export and in order to meet the standards.

What essential steps should Vietnamese enterprises take today to bring their products directly into global retail chains to meet evolving green standards?

You know, in practice, we got a lot of companies

because they are exporting to the EU and they are subsidiary of the European groups.

They have to use renewable energy.

And they know even if renewable energy is more expensive than normal energy in Vietnam, they are willing to buy.

So they are willing to accept the fact that their finished goods may be a little bit more expensive. But that's okay.

So that's a new game that Vietnamese companies also have to learn and to start preparing for the near future.

Thank you so much for your insight.

What is the Shadowing Technique?

Shadowing is a science-backed language learning technique originally developed for professional interpreter training and popularized by polyglot Dr. Alexander Arguelles. The method is simple but powerful: you listen to native English audio and immediately repeat it out loud — like a shadow following the speaker with just a 1–2 second delay. Unlike passive listening or grammar drills, shadowing forces your brain and mouth muscles to simultaneously process and reproduce real speech patterns. Research shows it significantly improves pronunciation accuracy, intonation, rhythm, connected speech, listening comprehension, and speaking fluency — making it one of the most effective methods for IELTS Speaking preparation and real-world English communication.

Shadowing Practice: The Point 2: Securing sustainable trade: Beyond the deficit | Vietnam Today - Learn English Speaking with Video

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