2015 Exports $264.7 billion, Imports $159.7 billion... Exceeding $100 billion

The Ministry of Trade, Industry and Energy announced that in 2015, domestic trade in materials and parts recorded a trade surplus of $105.1 billion, with exports of $264.7 billion and imports of $159.7 billion.

It was found that last year, the export share of materials and components exceeded 50% for the first time in history and the trade surplus exceeded $100 billion for two consecutive years, serving as a strong pillar of support for our economy even amidst difficult conditions such as low oil prices, the weak yen, and sluggish economic conditions in emerging markets.

Looking closely at the details of exports and imports, exports recorded $264.7 billion, a 4.1% decrease from the previous year, accounting for 50.2% of total exports ($527.2 billion). While exports to ASEAN increased slightly, driven by a 35.2% increase in exports to Vietnam, exports to most regions, including Europe and Japan, decreased.

While components such as electronic parts (+0.5%), electrical machinery parts (+3.2%), and computer and office equipment parts (+13.0%) showed strength, most materials sectors, with the exception of non-metallic minerals (12.7%), experienced a decline in exports due to factors such as falling unit prices caused by the sharp drop in oil prices.

Imports recorded $159.7 billion, down 5.1% from the previous year, accounting for 36.6% of total imports ($436.8 billion). While imports from most regions decreased significantly, including Japan, the Middle East, and Europe, imports from Vietnam (+73.2%) increased substantially.

By region, the concentration of exports to China increased, while dependence on imports from Japan decreased. In particular, the share of trade with Vietnam showed an upward trend. Although exports to China decreased slightly ($95.3 billion to $93.5 billion), the concentration of exports of materials and components to China rose to 35.3%. Dependence on imports from Japan recorded an all-time low of 16.5%.

A noteworthy point is that Vietnam’s trade share reached a record high of 4.8% as both exports and imports increased significantly. Vietnam’s exports rose from $12.5 billion in the previous year to $17 billion, while imports increased from $1.9 billion to $3.3 billion.

An official from the Ministry of Trade, Industry and Energy stated that last year’s import and export trends for parts and materials signify that the domestic materials and parts industry has moved away from a chronic trade deficit and has stably entered an era of a $100 billion surplus, following its first-ever surplus in 1997.

In addition, he added that this indicates the growth paradigm of the domestic manufacturing industry has shifted from an assembly industry to one centered on materials and components.

However, strengthening the competitiveness of the materials industry, which lags relatively behind the parts industry, remains a future challenge for the manufacturing sector.
The Ministry of Trade, Industry and Energy plans to establish the '4th Basic Plan for the Development of Materials and Components' within this year and provide support so that the materials and components industry can become a driving force for 'Manufacturing Innovation 3.0' and 'recovery of $1 trillion in trade.'