Vietnam's trade surplus significantly decreases by approximately 60% during the first four months of 2025.

Compelling trade surplus decline in Vietnam revealed

Lively thrills in Hanoi - A tantalizing dip in Vietnam's trade surplus has caught our eyes, with the figure plummeting by a whopping 58.2% compared to the same period last year. Gather 'round, as we delve into the juicy details!

First off, Vietnam's overall import-export turnover clocked in at an impressive $277 billion in the first four months of 2025, marking a thrilling 15.7% jump from the previous year. But wait, there's more! Exports shot up by 13%, while imports surged by a staggering 18.6%.

So, what about those wallet-filling coffers? State budget revenue from import and export activities stood at VNĐ142.1 trillion ($5.5 billion), which is equivalent to 34.5% of the annual target and represents a robust 12.1% increase compared to the same period in 2024.

But, despite the lively trade flows, customs authorities reported a persistent conundrum in stamping out smuggling, trade fraud, counterfeiting, and illicit goods transportation, particularly along key routes.

Sea transport, it seems, has been the shady catfish in the pond, accounting for a whopping 52.8% of total recorded violations. Key seaports like Đình Vũ, Nam Hải Đình Vũ, Tân Vũ, VIP Green, Cát Lái, ICD Phước Long, Hiệp Phước, Vict, and Cái Mép have been embroiled in cases of misdeclaration of goods - with some offenders resorting to ingenious tactics like using incorrect names, categories, quality, customs values, tariff codes, and origins to evade taxes.

Air routes have witnessed an uptick in cases involving the illegal transport of narcotics, currencies, and gold. Swindlers often exploit streamlined procedures, the rise of e-commerce, and the popularity of express delivery and goods consignment services to commit increasingly cunning violations.

As for the land routes, illicit trades in firecrackers and white sugar continue to flourish in central provinces and along the Vietnam-Laos border, with other everyday smuggled items like frozen food, consumer goods, and tobacco products frequently appearing without proper invoices or documentation, particularly along the borders with China and Cambodia.

Between January and April, customs forces unearthed and tackled 5,206 violation cases with an estimated total value of cha-ching-ing vessels reaching VNĐ10.3 trillion (more than $400 million). Administrative penalties contributed an attractive VNĐ347 billion ($13.4 million) to the State's budget.

The trade surplus in the first four months of 2025 dropped sharply compared to the same period last year. - VNA/VNS Photo

Enrichment Insights

Rising trade volume and transshipment practices, exploitation of tariff advantages, and commercial goods smuggling are on the rise, stretching the boundaries of enforcement agencies.
Smuggling networks, bolstered by complex logistical routes and the exploitation of export control enforcement gaps, pose a persistent challenge along Vietnam's key transportation routes.
The Vietnamese government is taking steps to address these issues, but persistent enforcement challenges persist, enabling continued smuggling activity.

The decline in Vietnam's trade surplus can be linked to the surge in smuggling activities, particularly in sectors like sea transport, air routes, and land routes along key borders.
The increase in customs violations, such as misdeclaration of goods and the illegal transport of narcotics, has been aided by the exploitation of e-commerce, express delivery services, and the rise in transshipment practices.
The use of artificial intelligence and advanced analytics in finance and trade could help identify patterns and irregularities in trading activities, enhancing customs enforcement and curbing illegal activities that contribute to the decline in Vietnam's trade surplus.

Vietnam's trade surplus significantly decreases by approximately 60% during the first four months of 2025.