Vietnam's trade deficit in August considerably narrowed to $113 million, according to data from the General Statistics Office on Thursday. This marks a substantial decrease from the revised $3.59 billion deficit recorded in July, which itself was an increase from the $3.28 billion deficit in April and a record $5.21 billion in May. The August figure also represents a significant improvement compared to the $1.05 billion deficit in February. Despite this positive development in the trade balance, the country has experienced eight consecutive months of trade deficits, starting with a $1.78 billion deficit in January.
Inflation in Vietnam, meanwhile, quickened to 4.9% year-on-year in August, up from 4.45% in July. This acceleration was mainly attributed to rising education and food prices. The August inflation rate is close to the 5.5% level seen in April, which was a six-year high, and exceeds the 3.99% average for the first four months of the year. The central bank had previously forecast inflation to potentially accelerate to as much as 5.5% this year.
Exports increased by 17.5% in August from a year earlier to $47.3 billion, a slowdown from the 25% growth seen in July. Imports, on the other hand, climbed 18% to $47.4 billion. For the first eight months of 2026, the cumulative trade deficit stands at $10.9 billion. This contrasts sharply with the $4.3 billion surplus recorded in the first four months of the previous year.
Economists from Maybank, Brian Lee and Chua Hak Bin, commented on the situation in an analysis on Monday, noting that despite the elevated inflation environment, the State Bank of Vietnam (SBV) places a higher priority on sustaining economic growth in accordance with government expectations. This suggests that while inflation is a concern, supporting economic expansion remains a key policy objective. The August trade and inflation figures highlight the complex economic landscape Vietnam is navigating, balancing trade performance with price stability amidst global economic pressures.
