Vietnam Trade Deficit Reaches $3.59 Billion as Imports Surge

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(Bloomberg) — Vietnam posted an eighth straight monthly trade deficit in July as factories continue to ramp up capacity, even as the export-reliant economy comes under renewed pressure from US tariffs. 

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Vietnam’s exports jumped 25% to $53.1 billion in July from a year earlier, the statistics office said, in line with economist expectations of 25.5% growth. Imports rose 41.4%, more than the 36.7% estimate, with the trade deficit coming in at $3.59 billion.

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The data show Vietnam’s export-led economy is maintaining momentum despite renewed US trade pressure and the impact of the war in the Middle East, which has spiked energy and fertilizer costs. Authorities are trying to accelerate overall economic growth to 10% a year, from 8% in 2025, by expanding exports and boosting investment.

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Vietnam’s factory activity expanded further in July, according to the S&P Global manufacturing purchasing managers’ index released earlier on Monday. The nation enjoyed a sharp increase in output, new orders, exports and purchasing, while the retreat in oil prices brought down costs for firms.

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The nation’s consumer prices meanwhile climbed 4.45% in July from a year earlier, close to the government target of around 4.5% for the year.

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Still, Vietnam is facing fresh US trade scrutiny after the country was among 60 economies hit with new US tariffs last month, because the US said they had failed to do enough to prevent forced labor in their supply chains.

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US customs officials have carried out spot inspections on China-linked factories in Vietnam over material sources and value-added content. The US continues to press Vietnam to cut non-tariff barriers, strengthen transshipment enforcement, and improve intellectual property protections as part of a final tariff deal.

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Raw materials, equipment and spare parts for production accounted for the majority of total inbound shipments.

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In the first seven months of 2026, the US remained the biggest export market for Vietnam, which saw its trade surplus with the world’s biggest economy rise 22.6% to $91.4 billion, according to the statistics office.

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China, with which Vietnam had a $93 billion trade deficit in the first seven months of 2026, remained Vietnam’s biggest source of imports, shipping an estimated $138.6 billion of goods in the period, up 39.7%. The US has been scrutinizing Vietnam’s exports amid concerns Chinese goods are being transshipped through the Southeast Asian country.

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Inflation was slower than the 4.6% estimate, even as a surge in global energy prices driven by the Iran war feed into transport, services and material costs. The central bank has forecast inflation may accelerate to as much as 5.5% this year.

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—With assistance from Francesca Stevens, Nguyen Kieu Giang and Cao Ban.

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(Adds detail of factory activity, US and China trade, and context on economy.)

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