Vietnam recorded a trade deficit for the eighth consecutive month, reaching US$3.59 billion, after imports surged 41.4%, outpacing export growth of 25%, amidst pressure from US tariffs.
On August 3, 2569, at 09.24:XNUMX a.m., Bloomberg News reported that Vietnam recorded its eighth consecutive trade deficit in July. The trade deficit totaled $3.59 billion, after imports expanded at a faster rate than exports, as manufacturing sectors accelerated imports of raw materials and machinery to increase production capacity. This occurred even though the export-dependent economy still faced pressure from US tariffs.
Vietnam's National Statistics Office revealed that the value of exports in July increased by 25% year-on-year to reach US$5.31 billion, in line with analysts' expectations. Meanwhile, imports surged by 41.4%, exceeding market expectations of 36.7%, resulting in a trade deficit of US$3.59 billion.
These figures reflect that Vietnam's export-driven economy continues to maintain its growth momentum despite pressure from new US tariffs and the impact of conflicts in the Middle East, which have driven up energy and fertilizer prices recently.
The Vietnamese government aims to boost economic growth to 10% per year, up from 8% in 2568, driven primarily by the expansion of exports and investment.
In the manufacturing sector, S&P Global's Manufacturing Purchasing Managers' Index (PMI) indicated that Vietnam's factory activity continued to expand in July, driven by increases in output, new orders, export orders, and raw material purchases. Lower oil prices also helped alleviate production costs for businesses.
Meanwhile, the inflation rate in July was 4.45% year-on-year, close to the government's target of around 4.5%, although lower than analysts' expectations of 4.6%. However, the State Bank of Vietnam still estimates that full-year inflation could accelerate to 5.5% if global energy prices remain high.
However, Vietnam still faces trade pressure from the United States. After being one of more than 60 countries subjected to a new round of import tariffs by the United States last month, the US stated that Vietnam had not yet implemented sufficient measures to prevent forced labor in its supply chain.
In addition, U.S. Customs officials have randomly inspected factories in Vietnam with ties to China to examine the source of raw materials and the proportion of value added to goods. They also urged Vietnam to reduce non-tariff trade barriers, crack down on transshipment, and enhance intellectual property protection as part of negotiations for a final tariff agreement.
The data also indicates that raw materials, machinery, equipment, and spare parts for production remain the main imported goods for Vietnam, reflecting continued investment in the industrial sector.
In the first seven months of 2026, the United States remained Vietnam's number one export market, with Vietnam's trade surplus with the US increasing by 22.6% to $9.14 billion.
While China remains Vietnam's largest source of imports, with Vietnam experiencing a trade deficit of $93 billion in the first seven months of the year and importing $1.386 billion worth of goods from China—a 39.7% increase from the previous year—the situation is amid concerns in the United States that Chinese goods may be transiting through Vietnam to circumvent US tariffs.
refer : bloomberg.com
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