Vietnam recorded a record trade deficit of $5.2 billion, the Iran-Iran conflict exacerbated the economic situation, while accelerating inflation and the target of 10% economic growth faced increasing challenges.
On June 3, 2026, at 9:20 AM, Bloomberg News reported that Vietnam faced a record-high trade deficit in May, driven by soaring import costs due to rising global prices for raw materials and energy amid the prolonged conflict between the United States and Iran.
Vietnam's National Statistics Office (NSO) revealed that Vietnam recorded a trade deficit of US$5.21 billion in May, higher than the US$3.98 billion forecast by analysts in a Bloomberg survey, and an increase from the US$3.28 billion deficit in April.
Data indicates that Vietnam's exports in May increased by 18% year-on-year. While this high figure is still lower than economists' forecasts of 19.7%, imports surged by 33.8%, exceeding market expectations and reflecting significantly higher costs for raw materials and imported goods.
This situation highlights the pressure on the Vietnamese economy, which relies heavily on exports for its growth, especially during a period of rising crude oil prices and global production costs due to conflicts in the Middle East.
The Vietnamese government had previously acknowledged that achieving its 10% economic growth target this year would be more challenging.
In addition to the impact of rising energy costs, Vietnam also faces trade risks from the United States after the Washington government launched a third trade investigation last week, which could lead to further tariffs in the future.
Despite trade pressures, the United States remains Vietnam's largest export market. In the first five months of 2026, Vietnam's trade surplus with the United States increased by 21.1% year-on-year, reaching US$60.4 billion.
China remains Vietnam's largest source of imports, with exports worth approximately US$92.6 billion to Vietnam during the period of January-May.
Vietnam's inflation rate in May rose to 5.60% compared to the same period last year, up from 5.46% in April, and exceeding the State Bank of Vietnam's forecast of no more than 5.5% for the entire year.
The acceleration of inflation is primarily due to soaring global energy prices resulting from the Iran-Iran conflict, which impacts transportation costs, the service sector, and domestic raw material prices.
This situation is adding pressure on the Vietnamese economy, impacting trade, production, and price stability, at a time when the government is trying to maintain economic growth momentum to meet its targets.
Reference: www.bloomberg.com
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