Vietnam July trade deficit widens, driven by higher fuel costs
FILE PHOTO: A container is loaded onto a cargo ship while docked at Hai Phong port, after U.S. President Donald Trump announced a 90-day pause on tariffs for many countries, in Hai Phong, Vietnam, April 16, 2025. REUTERS/Athit Perawongmetha/File Photo
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HANOI, Aug 3 : Vietnam posted a trade deficit of $3.587 billion in July, wider than June’s $2.64 billion gap, while consumer prices rose 4.45 per cent from a year earlier, compared with 4.69 per cent the previous month, government data showed on Monday.
Goods exports in July rose 25 per cent from a year earlier to $53 billion, while imports climbed 41 per cent to $56.67 billion, the National Statistics Office (NSO) said.
For the January-July period, exports increased 21.7 per cent year-on-year to $320 billion, while imports surged 34.8 per cent to $340 billion, resulting in a trade deficit of $20.5 billion, exceeding Vietnam’s previous full-year record trade deficit of about $18 billion in 2008.
The Southeast Asian manufacturing hub is targeting economic growth of more than 10 per cent this year, but faces headwinds including a widening trade deficit, rising inflationary pressures and ongoing U.S. investigations into overcapacity and possible violations of intellectual property rules.
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Vietnam is also facing a new 12.5 per cent U.S. tariff imposed on July 24 under a Section 301 forced labour investigation, after Washington determined that it had failed to effectively prohibit the export of goods made with forced labour, an accusation Hanoi has rejected.
Vietnam’s growing import bill has been driven in part by higher fuel costs this year. In the first seven months, crude oil imports fell 11.9 per cent in volume but increased 18 per cent in value. Imports of refined fuels rose 6 per cent in volume and 67.6 per cent in value, according to the report.
Foreign direct investment inflows in the January-July period rose 11.8 per cent from a year earlier to $15.2 billion, the NSO said.
Consumer prices in July rose 4.45 per cent from a year earlier, down from 4.69 per cent in June. The government is targeting inflation of 4.5 per cent for 2026, according to the report.
Industrial production in July expanded 14.5 per cent from a year earlier, while retail sales rose 14.5 per cent, the NSO said.
Source: Reuters
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