VIETNAM’S SEVEN-MONTH TRADE REACHES $659.58 BILLION AS DEFICIT WIDENS

Vietnam’s merchandise trade surged in the first seven months of 2026, but faster import growth pushed the country into a $20.52 billion trade deficit.

Source: The National Statistics Office

The National Statistics Office reported on August 3 that total export-import turnover reached $659.58 billion during the period, up 28.1 per cent on-year. Exports increased by 21.7 per cent, while imports rose by a faster 34.8 per cent.

The widening gap between export and import growth reflected stronger demand for raw materials, machinery, equipment, and other goods used for manufacturing and investment activities.

In July, Vietnam’s total merchandise trade value stood at $109.75 billion, an increase of 5.3 per cent compared with June and 33 per cent against the same month last year.

July export turnover was estimated at $53.08 billion, up 4.5 per cent on-month. The domestic sector generated $10.27 billion, rising 2.7 per cent, while foreign-invested enterprises (FIEs), including crude oil, contributed $42.81 billion, up 5 per cent.

Compared with July 2025, the country’s export value expanded by 25 per cent. Exports by domestically owned businesses increased by 14 per cent, while FIEs recorded growth of 27.9 per cent.

During the first seven months, Vietnam exported goods worth $319.53 billion, an increase of 21.7 per cent from a year earlier. FIEs continued to dominate export activity, generating $255.89 billion, equivalent to 80.1 per cent of the national total. Its export turnover increased by 26.4 per cent on-year.

Meanwhile, the domestic sector recorded export revenue of $63.64 billion, accounting for 19.9 per cent of total exports and representing growth of 5.8 per cent.

The country had 31 commodity groups with export turnover exceeding $1 billion each during the seven-month period. Together, these products accounted for 93 per cent of total export value.

Of these, seven commodity groups posted export turnover of more than $10 billion each, collectively making up 69.7 per cent of Vietnam’s total merchandise exports.

On the import side, turnover reached $340.05 billion in the first seven months, rising 34.8 per cent compared with the same period of 2025.

Imports by the domestic sector stood at $92.14 billion, up 24.1 per cent, while FIEs imported goods worth $247.91 billion, representing a sharper increase of 39.2 per cent.

The strong expansion in imports exceeded export growth and caused Vietnam’s merchandise trade balance to move from surplus into deficit.

The country recorded an estimated trade deficit of $3.59 billion in July. For the full seven-month period, the deficit reached $20.52 billion, compared with a trade surplus of $10.35 billion in the corresponding period last year.

The domestic sector posted a trade deficit of $28.5 billion, while FIEs, including crude oil, maintained a trade surplus of $7.98 billion.

The figures indicated that businesses were increasing imports of production inputs, machinery, and equipment as they mobilised resources for manufacturing expansion and investment in the coming period.

Source: VIR